Banking

How to Close a Bank Account — Step-by-Step Guide

Complete guide to closing a bank account in the UK, including what to do before closing, how to close different account types, and what happens to direct debits.

· 5 min read

Whether you’re switching banks, consolidating accounts, or simply decluttering your finances, closing a bank account is straightforward if you follow the right steps.

Before You Close Your Account

1. Check Your Balance

Balance Status Action Required
Positive balance Transfer funds to another account
Zero balance Ready to close
Negative balance Pay off overdraft first
Pending transactions Wait for them to clear

2. List All Linked Payments

Create a list of everything connected to your account:

Income:

  • Salary payments
  • Benefits
  • Pension
  • Tax refunds
  • Rental income

Direct Debits:

  • Mortgage/rent
  • Utilities (gas, electric, water)
  • Council tax
  • Insurance policies
  • Subscriptions (Netflix, Spotify, gym)
  • Loan repayments
  • Phone contracts

Standing Orders:

  • Savings transfers
  • Regular payments to family
  • Charity donations
  • Rent (if paid by SO)

3. Decide: Switch or Close?

Option Best For Process Time
Current Account Switch Service (CASS) Moving to a new bank 7 working days
Manual closure Closing without switching 5-14 days

Recommendation: If you’re opening a new current account, use CASS. It automatically moves your direct debits, standing orders, and redirects payments.

How to Close Using the Current Account Switch Service

The easiest way to close and move to a new bank:

How It Works

  1. Open new account — chosen bank handles everything
  2. Pick a switch date — at least 7 working days ahead
  3. CASS transfers everything:
    • Direct debits moved automatically
    • Standing orders transferred
    • Balance transferred
    • Old account closed
    • Payments redirected for 3 years

The Switch Guarantee

Protection Details
Payment redirection Payments sent to old account forwarded for 3 years
Error correction Any financial loss refunded
Timeline guarantee Switch completed in 7 working days
Participation All major UK banks participate

Using CASS — Step by Step

  1. Choose your new bank and apply for an account
  2. Complete the switch request (new bank provides forms)
  3. Select your switch date
  4. Confirm any direct debits/standing orders to transfer
  5. Wait 7 working days
  6. Old account closes automatically

How to Close Without Switching

If you’re just closing an account (not moving to a new one):

Online Closure

Many banks allow online closure:

  1. Log into online banking or app
  2. Navigate to account settings
  3. Look for “Close account” option
  4. Follow the prompts
  5. Transfer any remaining balance

Banks offering online closure:

  • Monzo
  • Starling
  • Revolut
  • Chase
  • First Direct (some accounts)

Phone Closure

  1. Call your bank’s customer service
  2. Pass security verification
  3. Request account closure
  4. Confirm where to transfer any balance
  5. Ask for written confirmation

Branch Closure

  1. Visit a branch with:
    • Photo ID (passport or driving licence)
    • Proof of address
    • Debit card
  2. Request closure at the counter
  3. Transfer or withdraw remaining balance
  4. Get written confirmation

Closing Specific Account Types

Joint Accounts

Requirement Details
Consent needed Both account holders must agree
Process Usually requires phone call or branch visit
Balance split Agree how to divide any balance
Overdraft Both parties liable until cleared

Savings Accounts

  • Check for early withdrawal penalties on fixed-rate accounts
  • Notice accounts may require 30-90 days notice
  • ISA accounts — transfer to preserve tax benefits (don’t withdraw)

Business Accounts

  • Clear all outstanding payments
  • Cancel business direct debits and subscriptions
  • Download transaction history for records
  • Inform HMRC of closed account if necessary

Student Accounts

  • Contact bank about converting to graduate or standard account
  • Consider keeping for the 0% overdraft period
  • Some benefits (railcard) may end

What Happens to Your Overdraft

Arranged Overdraft

Situation Process
Balance within overdraft Must deposit funds to clear
Regular overdraft use Arrange alternative credit first
Unable to repay Contact bank to discuss options

Clearing Your Overdraft

  1. Transfer funds from another account to make balance positive
  2. Gradual repayment — reduce overdraft over time, then close
  3. Overdraft transfer — some banks let you move overdraft to loan

Warning: Never just abandon an overdrawn account. This damages your credit score and the debt remains.

After Closing Your Account

Keep Records

Document Keep For
Closure confirmation Indefinitely
Final statements 6 years (tax purposes)
Direct debit list Until confirmed moved

Monitor Your Credit Report

Check your credit file after closure to ensure:

  • Account shows as closed (not defaulted)
  • No incorrect markers
  • Overdraft shows as cleared

Cancel Paper Statements

If you received paper statements, they’ll stop automatically, but confirm with your bank.

Special Situations

Deceased Person’s Account

  1. Obtain death certificate
  2. Contact bank to inform them
  3. Provide grant of probate/letters of administration
  4. Account frozen until estate settled
  5. Executor handles closure

Account Closure Due to Bank Decision

Banks can close accounts with 2 months’ notice. If this happens:

  1. Find a new bank immediately
  2. Move direct debits promptly
  3. The bank must explain why (if you ask)
  4. Consider a basic bank account if you’re struggling to open elsewhere

Fraud Concerns

If closing due to fraud:

  1. Report fraud to bank immediately
  2. Get a crime reference number from police
  3. Bank will freeze then close account
  4. Request new account number if keeping same bank
  5. Update all linked services with new details

Common Mistakes to Avoid

❌ Forgetting payments — always list all direct debits first ❌ Closing with negative balance — damages credit score ❌ Not getting confirmation — always get written proof ❌ Rushing the switch — allow 7+ working days ❌ Ignoring joint accounts — need both parties’ consent ❌ Withdrawing ISA funds — transfer instead to preserve allowance

Checklist Before Closing

  • Balance is at zero or positive
  • All direct debits listed
  • New payment details given to employers/payers
  • Standing orders reviewed
  • Overdraft cleared
  • ISAs transferred (not withdrawn)
  • Transaction history downloaded
  • Linked services updated
  • Final statement requested

Our Summary

Closing a bank account is simple if you prepare properly. Use the Current Account Switch Service when moving banks — it’s free, guaranteed, and handles everything automatically. For manual closures, ensure all payments are moved, balances cleared, and you have written confirmation.

Key tip: Download your transaction history before closing — you’ll need it for tax records and financial planning.