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What to do if your bank branch closes

Don’t worry, you have plenty of options.

Emily Batdorf
5 min read

When your local bank branch closes, it can be frustrating — especially if you’ve been banking there for years. But before you stress too much, consider your options.

Depending on your bank’s online presence and your personal preferences, you may be able to keep banking with little, if any, interruption. If that’s not possible, you can always switch banks. Doing so isn’t hard, and it might even allow you to capitalize on better rates and lower fees elsewhere.

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If it seems like banks are closing branches left and right, you’re not imagining it. According to S&P Global Market Intelligence data, 1,044 bank branches opened in 2023, but 2,454 closed. That’s a net loss of 1,409 branches in 2023 alone.

Banks close branches for a variety of reasons. Mergers and acquisitions, cost savings, and shifts in demand can all prompt closures. But perhaps the biggest culprit over the last couple of years is the rise of digital banking, which drastically grew in popularity as a result of the global pandemic. Not only did customers rely on digital banking when they couldn’t visit branches in person, many now prefer the ease and convenience of banking from home.

Read more: Online banking vs. traditional banking: Which one is right for you?

If your bank branch closes down, your money is still safe. But you may need to find a new method or location for banking. Consider the following options:

  • Find a different branch. Sometimes, your closest bank branch closes, but another one is only a couple of miles away. If there’s another convenient branch nearby, you can continue banking as normal at a different location.

  • Rely on your bank’s online banking tools and ATMs. No longer having a bank branch nearby doesn’t mean you necessarily have to find a new bank. These days, most banks offer robust online banking platforms, complete with a mobile app. Plus, you can always make withdrawals and deposits at ATMs, provided your account allows it. If your bank offers widespread ATM access and an easy-to-use online platform, you can continue to bank from home without needing to visit a branch.

  • Switch to another local bank. If your bank’s online presence is lacking — or if you simply prefer banking in person — you can always switch to another local bank or credit union with a convenient location. Switching to another bank lets you shop around for competitive rates and products.

  • Switch to an online bank. If you’re comfortable with online banking but your bank doesn’t make it easy, consider opening an account at an online bank. Because these banks don’t have to fund brick-and-mortar branches, they frequently offer high-yielding accounts with few fees. Online accounts may even come with free ATM access and other perks. Plus, because the bank only operates online, you won’t need to worry about branch closures in the future.

Read more: The 10 best online banks of 2024

If your bank branch closes, there isn’t another convenient branch, and you’re not satisfied with the bank’s online platform, you may have to switch banks. Luckily, the process is relatively simple. The following steps can help:

Think about what you want out of a bank or credit union. Low fees, high savings interest rates, and good customer service are common desires, but go beyond the basics.

Do you want an exceptional mobile app, free ATM access, a generous sign-up bonus, or an interest-bearing checking account? Do you want to earn cash back on your debit card? Maybe you want a community bank that values relationships, or maybe you prefer the convenience of a large national bank. Decide what matters most to you before you compare accounts.

If in-person banking is a priority, research banks in your area that offer the products, services, and perks you want. If you’re considering a credit union, make sure you meet membership eligibility requirements. If you’re interested in online banking, search online for accounts that meet your criteria and offer competitive rates.

When you open a new account, you typically need to provide your personal information and a government-issued ID. You may also need a minimum deposit to fund the new account.

If you’re enrolled in direct deposit or make automatic payments from the account you’re closing, switch them to your new account. Just make sure you have money in the new account before you’re charged for any bills and subscriptions.

After any automatic payments and direct deposits transfer to your new account, close your old account. Withdraw your money from your old account, but leave enough to cover the minimum balance, if your account has one. Then contact your bank to help you close the account, withdraw any remaining funds, and ask for written confirmation after closing.

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. You can always contact your bank if you’re having trouble making a withdrawal.

If your bank closes your local branch, that doesn’t mean it closes your account, too. You can still make deposits and bank as usual. But with your local branch closed, you’ll have to find another way to make a deposit. Depending on your bank, you may be able to do so by visiting another branch, making a transfer from an external account, using an ATM, using your bank’s mobile check deposit tool, or making a deposit at a participating third-party retailer.

A bank has to notify its primary federal regulator 90 days before its proposed closing date. It also has to mail a notice to its customers 90 days before closing. And 30 days before closing, the bank needs to post a notice at the closing branch to alert the public.