Why Bank of America Close My Account? 6 Potential Reasons

Did you just get a letter or email notifying you of an account closure?

You’re probably scratching your head and wondering “why did Bank of America close my account?” Having your bank account closed suddenly can be frustrating and confusing. You may have wondered what happened, how to fix it, and what happened to any funds that were in there.

The truth is that there are several reasons why Bank of America (or another banking institution) may close your account.  In this article, we will explain why Bank of America may close customer accounts and what you can do to fix this situation if it occurs.

What will happen if your Bank of America account is closed?

If your bank account is closed, the first thing you will notice is irregular inactivity. The things to could do before or the notifications you used to receive before; you will longer receive them.

According to the rules governing banking operations, Bank of America is supposed to send you a notification informing you of your account closure. Sometimes they do, and the customer may not receive the notification, but sometimes they don’t.

Whatever the case may be, you will not be able to make transactions with the account, nor will you be able to send or receive money. Regular account and service updates may also stop altogether. If you have money in the account, the bank is required by law to issue a full refund.

READ MORE: Is It Safe to Share Bank Account Information?

Why did Bank of America Close My Account?

Now let us look at some of the common reasons why Bank of America may close your bank account at short notice. Note that more than one reason may influence the bank’s decision to close your account. Here are some of the main reasons why Bank of America closes accounts.

1. Inactivity

Have you used this bank account lately? Were checks written, or has the account received funds? If it has, when was the last time this happened? 

If you have not used the account in a long time, that is classified as inactivity, and inactivity may lead to account closure. Bank of America may assume that you do not need the account, so there is no need to keep it open.

However, how long before they close it down depends on several factors best known to banking officials. An account closure on the basis of inactivity may take three or more years.

Before this is finalized, Bank of America will generally contact you to ask if you would like to close the account. If they get no response from you after a long time, they will go ahead and close it, and any cash left in the account will be turned over to the state.

2. Zero balance

If your Bank of America account has no money or activity for a long period, the bank may choose to close your account. All banks have their policy regarding how much your bank account should have.

Even if they don’t have a stated minimum balance, they likely have an in-house policy about this situation. They will use those internal guidelines to evaluate an account with a zero balance.

3. Defaulted checks

Also known as bounced checks, this happens if you write a check or checks from an account that has less money than the check amount.

Many accounts have rules allowing for the occasional overdraft (subject to penalties/fees). However, if this happens too frequently, your account may be closed. Bouncing checks can also be considered a crime, depending on the circumstances.

The same is true if an electronic charge bounces because of insufficient balance. If this occurs once, the bank will typically just notify you and issue a charge. If defaults happen multiple times, the account may be closed.

4. Exceeding transfer limits

Banks have transfer limits placed on all accounts they manage. Your account may be closed if you exceed these limits.

In the case of the Regulation D limit, if you initiate too many transfers on a savings account, Bank of America may then be forced to convert it to a checking account rather than close it.

5. Monetary risks

If your activity poses any form of risk to the bank, this may lead to account closure. That could be withdrawing more than you have in the account, in which case you’ll have to pay what you owe. Or it could be making purchases from sources the bank has flagged.

Other examples of suspicious activity are frequent cash transactions, overseas deposits, sudden changes in spending habits, etc. Under these situations, the bank will communicate its reasons for closing your account.

6. Fraud protection

Did you know banks monitor the accounts they manage to help prevent fraud? While this system is largely in place to prevent unauthorized activity like unauthorized charges, it can catch other things too.

Occasionally, unusual activity on an account may cause the account to be flagged and even closed. This is done to protect you, the account holder.

Bank of America, like many other banks, has security checks and infrastructure to prevent fraudulent activity on accounts. If suspicious activity is noticed like an unauthorized login, unusual withdrawals, or other activities that may place the account owner or the bank at risk, they will order the account closed or on hold.

Fortunately, this can often be resolved through a quick phone call or visit to your local bank branch.

Why Did Bank of America Close My Account?

Overall, if you’re wondering about the common reasons why Bank of America closed your account, there are several reasons this might have happened. There are several rules and guidelines you agreed to when you opened your bank account. The bank may close your account if a rule was violated.

Check with your bank’s customer care representatives to find out the exact reason your account was closed. They should be able to assist you with the next steps to take. You can also visit the Bank of America website at www.bankofamerica.com.

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