Banks close 30 branches in just one week - is YOURS affected? (2024)

FAQs

Does it affect me if a bank closes your account? ›

While closing a bank account typically doesn't have a direct impact on your credit score (like, say, having your credit card closed on you), it could become a problem if your account has any outstanding balances, such as unpaid overdraft fees.

There are lots of ways you can bank with us, you can: Bank from the comfort of your own home or on the move with our online and mobile banking services to get cash 24/7; check your balance; transfer money and use other payment options.

Banks have closed 539 branches in just six months - with Wells Fargo, Chase among those shutting the most. Banks closed 539 local branches across the country in the first half of the year - leaving more and more Americans without access to basic financial services.

Banks close on Sundays to give staff a day off, observe cultural customs, manage operational costs, and align with the broader financial system, which only operates on weekdays, like the stock market and payment processing systems.

If your bank closes, you should receive notification of what will happen to your money from the FDIC or NCUA, the acquiring bank or both. You'll automatically have an account at the new bank, or the FDIC or NCUA will issue you a payment returning your funds.

Then you may have a record on ChexSystems, a database that banks use to check whether potential customers have outstanding accounts at other banks. You also may have a ChexSystems report if you have a history of bouncing checks or mishandling your accounts.

Steps to take after a bank failure

If a bank fails, the FDIC is in charge of managing its assets. You'll have to wait until your money is moved to another FDIC-insured bank or mailed to you as a check in order to have access to it.

Unless an exception to the notice of branch closing requirements applies, a bank must provide affected customers notice by mail at least 90 days before the proposed branch closing. The notice may be included in the account statement mailing or sent in a separate mailing.

If your bank branch closes, you can still withdraw money from an ATM. To avoid fees , make sure you visit an in-network machine. Depending on your bank, you may also be able to withdraw money by requesting a check, making a transfer to another bank account, or getting cash back at a retailer.

There is 1 bank failure in 2024. See detailed descriptions below. For more bank failure information on a specific year, select a date from the drop down menu to the right or select a month within the graph.

What is the busiest day of the week for banks? ›

If you typically go to the bank at the start or end of the week, you might want to rethink your strategy. These tend to be the worst days. “Mondays and Fridays are often the busiest days at the bank,” said Nathan Jacobs, financial expert and senior researcher at The Money Mongers, Inc.

Financial Institutions and Businesses, Section 37.002 (c) stipulates that “An office or operation may not remain closed for more than three consecutive days, excluding days on which the bank is customarily closed, without the banking commissioner's approval.”

Despite having 9am to 5pm working hours, why do banks shut their doors for customers by 3pm? Some banks/branches keep it open for customers till 4 or 5 pm. Branches need time to sum up the day's transactions and balance credits and debits done. Cash is to be closed after a similar balancing process.

Generally, closing a bank account doesn't affect your credit

The Consumer Financial Protection Bureau confirms that the three major credit bureaus — Experian, Equifax and TransUnion — don't typically include checking account history in their credit reports.

Closed accounts might be reopened depending on the bank's policies and the reasons for closure. Dormant accounts require reactivation, which can often be resolved by making a transaction. Accounts closed due to excessive overdrafts may be reopened after settling outstanding balances.

Federal record retention laws require that banks retain most account records for five years. All states have programs requiring banks to transfer funds held in abandoned accounts to the state. This is often referred to as escheatment.

Banks are required by federal regulations to retain certain account records, such as checks and electronic transfers, for set timeframes after an account is closed. For checks, this retention period is 5 years. Beyond those minimums, banks will often keep records of closed accounts for 7-10 years after closure.