Can i reopen a closed bank account

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You may not think it could happen to you. A bank generally can close your account at any time and for any reason—and sometimes without notifying you in advance.

Reasons a bank may shut down your account include using your account very little or not at all, or bouncing too many checks. While it may come as a shock when your bank account is closed, you can take steps after it happens to safeguard your money. In addition, you can make some moves to help ensure the bank never closes your account. The bank is required, however, to return your money, minus any unpaid fees or charges. The returned money likely will come in the form of a check. In some cases, your bank may close an account and switch it to a different type of account.

Typically, though, it takes several years of little to no activity for a bank to pull the plug on an account. The bank is usually required to contact the account holder if it decides to close the account. If your account contains no money, the bank might close it. Simply because an account says there are no minimums, does not mean the account should remain empty for days or months. The time frame will vary based on your individual bank and its practices.

Once that happens, the bank might close your account. Overdrafts can happen when you write a check, make a debit card payment or carry out an ATM transaction that sends your account balance into negative territory. Banks impose limits on how many transfers you can make between certain types of accounts, such as a checking account and savings account.

If you exceed those limits, the bank might close at least one of the accounts. Or, in the case of a savings account where you repeatedly exceed the Regulation D transfer limits, it could be converted into a checking account instead. Large and regular transfers or withdrawals of money are among the actions that may raise a red flag. This may include gun sales, marijuana sales, online gambling or escort services.

If your bank stops doing business in your state, shuts down branches in your area or exits the banking business altogether, it may very well close your account. If your bank closes your account—for whatever reason—you have options, whether with your existing bank or credit union or with another financial provider. Also, by better understanding why an account could be closed, you can take steps in advance to help avoid being put in this situation. John Egan is a freelance writer, editor and content marketing strategist in Austin, Texas.

His work has been published by Experian, CreditCards. John earned a bachelor's degree in journalism from the University of Kansas and a master's degree in communication from Southern New Hampshire University. She has worked as a personal finance editor, writer, and content strategist covering banking, credit cards, insurance and investing. Consumers Union is calling on the federal Consumer Financial Protection Bureau and Congress to keep zombie accounts in the grave.

Get Ratings on the go and compare while you shop. Sign In. Become a Member. Remember Me. Forgot username or password? Not a member? Need further assistance? Please call Member Services at Banks set their own policies regarding the reinstatement of closed accounts, but getting an account that was closed due to a negative balance will likely a require a deposit large enough to cover the debt.

As an alternative solution, a bank with a policy that doesn't allow the reopening of accounts may allow the opening of a new account after the debt is paid.

An account closed after going dormant may be re-opened if an electronic payment or deposit is submitted within a specified amount of time. Commerce Bank is one such bank that will reopen a checking account if an incoming deposit is transmitted to the closed account within a certain amount of time. While Fidelity Bank and Trust will close a business account that carries a zero balance for 30 consecutive days.

Although, an account closed for this reason can be reopened at the customer's request if accompanied by a deposit. However, Citizens Bank , will move a dormant account from closed status, to terminated status when the account carries a zero balance for 61 days. Because terms vary greatly, it is best to read your bank's disclosures and agreements carefully, or contact your bank directly for clarification.

Once you have reinstated your account, ask your bank representative if the institution will be filing a report with ChexSystems , a service that maintains data on problematic bank account histories of individuals and businesses.