If you need to provide a business bank account closure letter, you’re in the right place. Below, you will find sample text along with key information that you need to include in an account closure letter.
We’ll also suggest a few alternative steps you might want to take before submitting a business bank account closure letter, that could save you time and effort.
Of course, if you’re closing a business bank account you might be interested in opening a new one as well. If that’s the case, you can use the many free resources available on our site to help you choose where to open.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Business Bank Account Closure Letter
- Process of Closing a Business Account
- Frequently Asked Questions
- Ready to Explore Your Options?
Business Bank Account Closure Letter
Business bank account closure letters need to include specific details in order to initiate the account closure process. This information includes the following:
- Date of the account closure request
- Legal name of the business to whom the account belongs
- Corresponding account number of the account to be closed
- Legal name and position of the person(s) requesting the closure
- Contact information for verifying the closure request
- Whether the account will be closed immediately or at a set date
- Status of funds in the account and what will happen with them after closure
How Do I Write an Account Closing Letter to Close a Business Account?
If you’re wondering how to write an account closing letter to close a bank account, your first step should be to ask your bank if they have a specific template they want you to follow. This is important because most banks do have templates that specifically outline the information they require.
If your bank does not have a specific template to follow, you can simply provide them with the information listed above in order to request closure. In most cases, banks will accept an email from an email account tied to the bank account.
However, if a formal letter is required, then it is best practice to include the letter on the company’s official letterhead.
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Process of Closing a Business Account
The actual process of closing a business bank account will depend on the specific bank that your business has accounts with.
For example, in certain instances, the bank may request a formal letter like the one discussed in this article. In other instances, the bank may simply need you to notify them via email or a phone call.
That said, there are some common steps in the process when closing accounts at all banks, including:
- Complete any required transactions to/from the account before providing notice of the account closure
- Notify the bank of your decision to close the account, including whether you want the account closed immediately or at a specific time in the future
- Transfer any remaining funds out of the account to a designated account for the business
Frequently Asked Questions
Below are three of the most common questions that we receive from people that are looking to write a letter to close a business bank account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Close a Business Bank Account?
If you are looking to close a business bank account, the first step is ensuring that all of your banking activities tied to the account have been completed. After that, it is usually best practice to schedule any final withdrawals of remaining balances and then inform the bank that you would like to close the account.
In most cases, the bank will require you to provide direct notice of the account closure. Notice can usually be provided either through an email, verified phone call, or an official letter from the company. Of course, all banks have different requirements so it’s important to confirm the exact steps with your banker to ensure a timely closure of the account.
Can a Bank Just Close a Business Account?
Yes, banks have the ability to close a business bank account. This can include a violation of the account terms of service, transactions that the bank deems high risk, transactions to or from high-risk countries, and many other reasons.
Unfortunately, if you have had a business account closed by a bank it can be very difficult to find out why. That’s because most banks do not disclose their compliance decisions, instead, they just inform the client that the banking relationship has been terminated and provide them with a deadline to send out all funds.
Can I Keep My Business Bank Account if I Close My Business?
No, if you close your business you cannot keep your business bank account active. In fact, depending on where your business is registered, your bank may be alerted to the status of the company through a publicly accessible registry.
With this in mind, it is usually best to complete any banking-related activities before you close your business. Otherwise, you could find that you are unable to complete any of the transactions that are required to wind up your business.
Ready to Explore Your Options?
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Of course, if you have any questions, please contact us directly.