What are the steps of closing bank accounts? May 7, 2010
Posted by Banking in : Personal Finance , trackback
I’m moving and need to put my money in a bank closer to my new house, what would be the steps to doing that? Also, how would I treat CDs, because there is a penalty if I take the money out before 5 years. Would it be different if I watned to close teh account than if I just wanted to take the money out of the CD?Submited by:chrisbottan
Comments»
First.
See if you have that same bank at your new location.
Ex: Bank of America seems to have brances in every city.
You will pay a penalty of 6 months to 9 months interest depending on that bank. Only brokerage accounts will sell your cd at current market value.
I would let the old cd sit at the old bank.
At most, your old bank will charge you $25 for closing the account over the phone and mailing you a check.
I wish you would have mentioned how much interest that cd was earning. Cd’s now are barely paying 4%, even for 5 year cd’s. Buying cds now, is not as great of an investment.
Call your bank and ask them if there is a fee for closing the cd over the phone. If not, let it sit.
Oh, when switching checking accounts it is always best to open the new account in the new city immediately.
In an ideal world, you would have 2 checking accounts (1 in each city) open for at least one month. Old checks have a way of magically clearing when you close old checking accounts.
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Find a new bank and have them transfer your old account to your new electronically. Change your address at your old bank and leave the cds in place until they mature.