When you have a checking account you can perform a number of transactions. A checking account provides convenience. A checking account can be closed for a number of reasons. Once an account has been closed, you will not be able to use it for any banking purposes. You will need to open a new checking account. There are ways to tell if an account has been closed. If you try using a closed checking account you will be inconvenienced.
Evaluate all of your transactions. Review all of your transactions, such as direct deposit, auto loan payments, outstanding checks, checking account statement, social security direct deposit, insurance premiums auto deduction, Internet service, and automatic mortgage payment deduction, which are processed through your checking account, automatically or manually.
Investigate to see if any or all of these transactions have been stopped. If a checking account is closed, any transactions will not go through. If your Social Security check is a direct deposit into your checking account, it will not be processed. The transaction will be rejected and the Social Security Administration department will be notified. SSA will then mail you out a paper check to your address. Any checks that are written will not be processed through your checking account. These checks will be returned and stamped account closed. If you try to make a deposit to your account you will not be able to do so at an ATM or inside a branch.
Call your bank. A bank representative will be able to explain why your account was closed. Sometimes checking accounts are closed if they have a negative balance, as a result of fees. If the fees have been outstanding for a while the bank will close the account. Before closing, it will send you a notice to let you know the balance is negative. An account can also be closed if you have a sufficient amount of negative activity, such as a number of checks returned for non-sufficient funds resulting in unpaid fees.
Wait for mail confirmation. You will receive written correspondence from each institution that initiated a transaction that was rejected. They will inform you that they were not able to complete your transaction. They will also let you know what the disposition of the transaction is. Your bank will also send you a letter indicating your account has been closed. The bank will inform you that you must stop using the account at this time. The bank will also provide a phone number for you to call and it will probably ask you to stop in and speak with a representative if you have more questions.
Open a new account. Once your checking account has been closed it cannot be reinstated. The best thing to do is open a new checking account. You will need to call every place that initiates an automatic transaction, such as your employer with direct deposit, your Internet service provider, and the Social Security Administration. They will need the routing number and checking account number for your new account. When everything is set up these transactions will be processed as usual.
If you want to close your account don't do so until your automatic transactions are being deposited into your new checking account first. You should wait until the transactions have actually started going through.
Keybank, which has branches in 45 states, allows a closed account to be opened if an automatic transaction, such as Social Security, goes through, according to a company representative. The change was instituted in 2009, the representative said.
If your account is closed by the bank due to unpaid fees you could be reported to ChexSystems. This is a credit reporting agency that banks use to report customers who have abused their banking privileges. If you are reported to ChexSystems it will be difficult to open another bank account.