In this article, we’re answering “Can you reopen a closed bank account?”
But first, if you’re experiencing a closed account and you require a new bank account, you can access one of our most popular articles outlining how to get an international bank account for free right here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can You Reopen a Closed Bank Account?
- How Do I Reopen a Closed Bank Account?
- How Do I Avoid Having My Account Closed?
- Frequently Asked Banking Questions
- Do You Want Help Opening Bank Accounts?
Can You Reopen a Closed Bank Account?
Yes, you can reopen a closed bank account if you voluntarily closed the account or if it was closed for inactivity. However, if an account has been closed due to a breach of terms of service, compliance concerns, or irregularities, then it is highly unlikely that the bank will reopen the account.
However, regardless of whether the bank is giving you the option to reopen or not, once an account is closed you should consider banking elsewhere. This is especially true if the bank closes your account due to transaction activity, as your account will likely be under close scrutiny.
While scrutiny is not necessarily bad, it can mean that the account becomes completely inefficient and results in ongoing document requests and questions before transactions are approved. In short, it’s often easier and less time-consuming to open a new bank account elsewhere.
In the following sections, we’ll share how you can reopen a closed account. We’ll also share how you can avoid an account closure in the first place.
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How Do I Reopen a Closed Bank Account?
As mentioned, if you originally closed your bank account voluntarily, you can proceed with reopening accounts at the same financial institution.
The process to reopen the account will depend on the type of account you have, whether you have any other bank accounts that are still active at the bank, and the bank’s internal banking policies.
Requirements for Reopening a Closed Account
If you were a private bank account holder, you could start the process of account reopening by contacting your previous banking relationship manager and having them coordinate the entire process.
On the other hand, if you have a personal checking or savings account, you will need to contact the bank directly and ask to open a new account.
In all cases, if you do not have an ongoing banking relationship with the financial institution, you will need to complete the account opening process from the beginning. This will include completing a new application, providing supporting documentation, making a qualified deposit, and completing account opening interviews.
How Do I Avoid Having My Account Closed?
If you would like to avoid having your account closed, you need to start by selecting the right bank. That means choosing a financial institution that will be accepting of your banking profile and account transaction activity.
Likewise, the bank should be accepting of your desired ongoing balance and any risks that might arise in relation to your account. To determine this, you should understand the bank’s desired client and acceptance criteria before applying for an account.
Here are a few specific considerations that can help you avoid an account closure.
Ways to Avoid Having Your Account Closed
- Select a bank that understands your banking profile
- Maintain a reasonable deposit with the bank
- Avoid erratic transaction behavior
- Do not send money to or from high-risk countries
- Do not transact with individuals on watch lists
- Avoid using high-risk services or online platforms
- Do not engage in unregulated financial transactions
- Communicate clearly with your banker
Frequently Asked Banking Questions
Below are three of the most common questions we receive from people exploring if they can reopen a closed bank account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can a Closed Bank Account Be Reactivated?
A closed bank account can be reactivated (or reopened) if it is voluntarily closed. However, if the bank chooses to close your account due to a breach of terms, compliance concerns, or irregular behavior, the bank will not reactivate the account and you will need to open a bank account elsewhere instead.
What Happens If a Bank Closes Your Account?
If a bank closes your account, they will typically ask that you withdraw any remaining funds. This will be done by sending a transfer with the balance in your account to another account in your name. If you do not have another bank account in your name, you will need to open one with another bank.
That said, if the bank closed your account because your name appears on a watchlist, in negative news coverage, or in other databases used by banks, you will likely face significant challenges reopening closed accounts.
Can You Open a Bank Account If One Has Been Closed?
Yes, you can open a bank account if another bank account has been closed. But you will have to open a new account with a different bank. The only instance where an account can be reopened is if you originally closed the account.
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