Yesterday I received a rather specific question on how to close a Bank of America account. I had received a similar question on closing a Bank of America account some time back. As a result, I think it is time I put a write-up on this.
Before I go to the specific details on the Bank of America account closure, first you need to know that bank accounts have various important features.
They keep your money safe, as it earns interest.
They also give you the ability to issue checks as well as to make instant deposits and withdrawals.
At times, however, there may be a need for you to close a bank account.
Banks are different and with different systems which makes it difficult to get exact and clear information on how to close a bank account. The procedures tend to vary.
Maybe you have had a good bank relationship for some time, precisely with a big bank, but then things have become complex and costly.
The account maintenance cost, overdraft fees, maintenance fees, minimum balance fees, at times shady practices and more might have gotten to you.
Maybe you also felt as though you were using up more than you were receiving.
The good news is that there are many no-fee banks that fit the many needs of customers. All you need to do is disengage from your traditional bank account and know how to go about closing it.
With the much advancement in the banking sector, each bank would make it swift for customers to close accounts with most requesting that those who wish to close their account reach out to a retention specialist.
Retention specialists are mostly encouraged to offer the customer some incentives in a bid to have them reconsider their decision.
They are likely to offer you temporary waiving of fees and other offers as a tactic, and it sometimes works especially with customers who really intend to stay.
This negotiation skill also works with employees who wish to quit work.
It is therefore advisable to keep off retention specialists whose intention is to talk you into staying with the bank.
When you have a savings or a checking account with the Bank of America, you are required to maintain a minimum balance in your account.
Failure to maintain this minimum balance, the bank charges you a monthly fee of up to $25.
This means that if you were to continuously keep a very small balance in your bank account every month, you could end up paying as much as $300 by the end of each year.
Alternatives to this include customers closing their Bank of America accounts and moving to banks that do not impose minimum account balance on savings and checking accounts.
If you have already made the decision to move to another bank, it is time to initiate the Bank of America account closure.
You only need to choose the best method to close your account.
How to Close a Bank of America Account
The first step in closing a Bank of America account is to ensure that you have already transferred your money out of the account.
Once you have already transferred all the money from your Bank of America account, begin updating the payment information on record with your creditors, lenders, utility firms, and any other companies that you directly pay every month or any other specified period via your bank account.
With this, you leave nothing linked to your old account and no balance in it.
Finally, ensure you download any of your old account bank statements as you may need them in the future.
You can do this from the bank’s website while the account is still open since it will be problematic after Bank of America account closure.
Options on How to Close a Bank of America Account
Closing a Bank of America Account at a Branch
You can visit your local Bank of America branch and close your account in person.
You will be required to provide personal information to confirm your identity. The banker will mainly require your social security number, address, birthday, PIN, and any other key information that only you can provide.
This is a way to ensure you are the account owner.
Closing a Bank of America Account via Mail
Bank of America account closure via mail is another option that is available for you to use.
You can close your account by mailing a signed written account closure request to the bank’s official address at:
Bank of America
PO Box 25118
Tampa, FL 33622-5118
How to Close a Bank of America Account via the Phone
The fastest and most convenient way to close your Bank of America account is through the phone.
This is a move customers who are prepared to close their accounts take.
Proceed to call the bank’s toll-free customer support service at 1-800-432-1000.
One of their representatives will take the steps to close your bank account upon your request and authorization.
Closing a Bank of America Account Online
Bank of America currently has no offer to close any of their accounts online, either on the website or using mobile (through an app).
It could be very convenient if you could close a Bank of America account online, but I think the absence of this service is more of a precaution measure.
The process may seem easy and convenient, but then it may not be a safe measure.
With hackers lurking everywhere, it is better to be safe than sorry. When it comes to money, convenience shouldn’t come at the expense of security.
Now that you are aware of the different options of how to close a bank of America account, we can check on other things like what happens afterwards.
What Happens After the Bank of America Account Closure
After you close a Bank of America account, all requests for funds that come through it will be denied.
It’s easy to miss a payment in the process but doing so could pose challenges with your creditors.
There are people who choose to leave their old account open with minimal balance for some time, to ensure they do not miss any recurring payments they may have missed.
Other than monthly bills, consider any annual or semiannual costs you may not remember.
Remember that you can begin updating the payment information on record with your creditors, lenders, utility firms, and any other companies that you directly pay every month or any other specified period via your bank account the moment you initiate Bank of America account closure.
State laws tend to govern how fast bank accounts must be closed upon request by an account holder.
Ensure to save all the documentation from the process and, in case of any problems, review your local laws.
Before you decide to contact the regulators, contact the bank and let them know that your account remains open and you intend to report the matter.
By now, I think you have all the information you would need on how to close a Bank of America Account.
How Long Banks Keep Records of Closed Accounts
A bank is a business, and it requires proper safety. Bank of America keeps their costumer’s records well even after closure of their bank accounts.
This is for the bank’s security.
In case for any reason, you become subject to an IRS audit, you may actually be glad that you can access your old account information.
Even after closing your account, you may notice an inappropriate charge on your last account bill, and the stored records go a long way in clearing things up.
Every bank has its own policies, but Bank of America states that it retains records for as long as seven years.
This is simply for records purposes and will not impact your credit negatively.
On the other hand, closing your credit card account could result in a downward slide on your score, in the short term.
It is advisable to keep your credit card account open in case you plan to apply for a mortgage or to finance a new car in the near future.
Now that you know how to close a Bank of America account, it is your time to take action if this is what you want to do. Just ensure that your Bank of America account closure follows the tips provided above to ensure that things go well.