For most checking accounts, any account holder can close the account as well as the bank where the account is held.  Section 4-403 of the Uniform Commercial Code establishes standard provisions that are adopted by most states regarding account control and access.  Per section 4-403 of the Uniform Commercial Code, any person authorized to draw on an account can close the account. 

Individual checking account holders can close their checking account as long as they follow the instructions provided by the bank.  Joint checking accounts can be closed in the same manner by either of the signatory parties on the account, either working together or acting alone.  Even an authorized signer or person acting under a pertinent power of attorney can close a checking account.

Occasionally, banks will restrict the rights of authorized signers who are not account holders.  In these particular cases, the bank’s deposit contract may prevent an authorized signer from closing an account as a means of protection for the account holder or holders.

The bank itself can also close a customer’s checking account without notice.  Most bank checking account agreements give the bank the right to close a customer’s account at any time for any reason.  Checking account holders who frequently write bad checks or overdraw their account may find that their bank will close their account without warning.  A 2008 Harvard Business School report titled, Bouncing Out of the Banking System: An Empirical Analysis of Involuntary Bank Account Closures reported that about 6.4 million bank accounts were involuntarily closed in 2005 by banks and other financial institutions. 

Bank customers should read their account agreement to verify the procedures for closing out an account to avoid any delays or other complications with pending payments or financial transfers.

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