If direct deposit money is sent to a closed account, the funds may be returned to the original sender. While it might not go directly to you, it also will not be lost, and you need to get the sender your new account information.
Your direct deposit goes straight into your bank account, provided your account is still open. If your account is closed, the funds have nowhere to go, so the transaction will not be complete. Since the money will get sent back to your employer's account, you should hear from them about a way to arrange repayment.
How long does it take for money to bounce back from a closed account? Each bank has its own policies in place, but some sources supply a rough estimate of 5 to 10 days until funds are returned. Funds are more likely to be amended quickly if the account holder is in good standing.
Some banks reopen accounts—and impose fees—even after they've been closed. The last thing you might expect after closing a bank account is for your bank to resurrect it without permission and start charging the pesky fees that may have led you to close the account in the first place.
If the refund is issued to a closed bank account the funds will stay as an incomplete transaction and will be waiting to be paid at the bank level. You will have to contact the issuing bank and follow up to arrange for other possibilities to receive funds - via cash, cheque, etc.
Can you close a bank account with a negative balance? No. If you request to close an overdrawn account, your bank will require you to pay the balance before they can close the account. Without that, banks will refuse to close the account.
How Long Will a Bank Hold a Direct Deposit with a Closed Account? This will be determined by the bank's policy, so there can be some differences depending on what bank the account was with. But in most cases, the money will be returned somewhere between 4 and 10 days.
If you've had your account closed due to an unpaid negative balance, the bank or credit union would typically report this “involuntary closure” to a checking account reporting company. You may also be reported if you were suspected of fraudulent activity by the bank or credit union.
Banks cannot charge any fees to reactivate a dormant bank account. In case your bank levies any such charge, you are free to report the same to the banking ombudsman.
Customers need to visit the branch of the bank and make an application to activate the dormant account. A bank can activate a dormant account the next business day or can take more time depending on internal processes and risk category of the depositor.
You may wish to contact the unclaimed-property office or state treasurer for the state where the account was held for assistance. You can locate your state office's website at Unclaimed.org. Federal record retention laws require that banks retain most account records for five years.
The bank will realize that the card number is no longer valid, but will see the account it's tied to, at which point the refund should be transferred to the new card number/account automatically. ... The bank will reject the refund to the outdated card, and the funds will be returned to our payments processor.
If your card is lost, you must contact the bank immediately to report the loss, but you can still get cash through your bank while your lost card is being replaced.
If your card is canceled but the account is open
The merchant can issue a refund to your canceled card and the refund will appear on the account associated with your new card.
It may be possible to reopen a closed credit card account, depending on the credit card issuer, as well as why and how long ago your account was closed. But there's no guarantee that the credit card issuer will reopen your account. ... But it may be worth asking other issuers if you'd like to reopen your account.
Fifth Third Bank will reopen your CLOSED checking account for WEEKS after you close it if you forget to remove payment information somewhere and a charge is attempted. They reopen, put the charge through, and then start charging fees.