Ready to learn close bank account with outstanding checks?
Read on.
Written By Kevin Mil - Author/Founder
Can you close a bank account before a check clears?
To close your bank account, first prepare a bank reconciliation to identify any outstanding checks.
If there are many outstanding checks, you typically need to wait for them to clear before closing the account.
However, if you don’t want to wait, consider calling the payees who haven’t yet deposited their checks.
Offer to pay them directly in exchange for returning the physical checks to you.
It’s important to inform these payees of your intention to close the account.
Otherwise, you may incur bank charges if they attempt to deposit their checks after the account is closed.
Depositor may incur bank charges
If you close your bank account, payees can still deposit any outstanding checks, which may result in significant non-sufficient funds (NSF) charges from your bank.
To avoid these costly fees, I strongly recommend reconciling your account or seeking professional assistance before closing it.
Our team is available to help ensure a smooth transition and prevent unexpected expenses.
Remember to reach out to payees who haven’t deposited their outstanding checks.
Ask them to either deposit the checks or return them to you for payment.
Taking this step protects you from any future actions by check holders.
Possible Legal Action
Preparing your bank reconciliation helps avoid potential issues down the road.
If payees deposit checks after you’ve closed the account, you could face liability for fraud and hefty legal charges.
Reconciling your accounts regularly is a smart way to steer clear of such problems.
What to do before closing your bank account?
Before closing your bank account with outstanding checks, consider three important steps.
First, prepare a bank reconciliation yourself or hire a professional like us to handle it.
Next, contact all payees with outstanding checks.
If there are numerous payees, you might want to hire someone to make these calls for you.
Lastly, stop issuing new checks before closing your account.
These actions will help ensure a smooth transition and prevent any potential issues with outstanding payments.
Disclaimer
I am not an attorney, so the information provided here is for general purposes only and should not be considered legal advice.
As a Certified Public Accountant, I am simply sharing my knowledge on this topic.
Please consult with a qualified lawyer for specific legal guidance related to your unique situation.