Reasons a Bank Can Close Your Checking Account
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When you want to open a bank account, find the best free checking accounts online. A checking account allows you to make purchases, pay bills, and access cash conveniently. If your account is closed, it can result in financial difficulties.

A closed account can lead to late payments and leave you in debt. The decision to close your account is at the bank’s discretion. It is necessary to find out why a bank can close your checking account.

Dormant Checking Account

If your account has been dormant for several years, the bank can decide to close it. Failing to write a single check in two years or not making debit card transactions for years can lead to the closure of the account.

Lack of regular account activity will cause the bank to declare the account dormant. It usually takes several years before the bank decides to close an account due to inactivity. In most cases, banks will pull the plug after three to five years of lack of activity.

Zero Balance 

The bank can decide to close your account if you do not deposit any money. Having a zero balance for months can indicate that your account is not in use. The duration will depend on the bank and its regulations. It happens when the account does not have a minimum balance. Your account may reduce to zero due to monthly fees. You need to monitor your account balance regularly.

Suspected Illegal Activity 

It is vital to realize that criminal enterprises use banks to conduct their activities. Banks monitor accounts on a routine basis. This is to detect suspicious activities such as money laundering or terrorist funding.

If the bank suspects illegal activity, it can close or suspend your account. Banking regulations give the banks authority to close accounts when they suspect that the account holder is involved in illegal activities.

Prolonged Negative Balance 

If your bank account is negative, the bank will charge overdraft fees for every transaction. If you fail to top up your account, the fees will continue to add up. After a while, the bank will close the account.

The bank may also send your details into a system that will blacklist you from opening an account in another bank. A prolonged negative balance will affect your credit rating. It will make it hard for you to access credit or qualify for a loan.

Returned Deposit Items  

If a deposit fails to clear your account, it can lead to the closure of the account. A return deposit can be a bad check or a reversed direct deposit. When you deposit a check, there is a time lag when the transaction goes through the system.

During this time, the bank advances you the money while waiting to receive the money from the bank that issued the cheque. If the money is not received, the bank can take money out of your current account without notice.


Other reasons to close your account include suspected identity theft, too many bank transfers, and criminal conviction. The bank may notify you when they close your account, but the law does not require it to do so. The bank will return your money minus the charges or unpaid fees when your account is closed.