Everything You Need to Know About Canceling a Bank Account in the Czech Republic

In 2023, over 40 banks were operating in Czechia, with many people holding multiple accounts. According to the Czech National Bank, around 10% of residents change their primary financial organization every year.  This guide will walk you through the process, covering all the essential points of how to cancel a bank account.

Are you leaving the Czech Republic or want to switch banks? Closing your bank account might seem daunting, especially if you are an expat or new to the country. Whether you are leaving the country, switching banks, or just simplifying your finances, here is how to annul a bank account smoothly.

Reasons for closing banking records

You do not need a specific reason to cancel your bank account in the Czech Republic. It is your right as a customer. However, many people have good reasons to make a change. Here are some common ones:

• Moving abroad (like leaving Czechia).
• Finding better interest rates elsewhere.
• Switch to online banking for convenience.
• Qualifying for a new signup bonus.
• Avoiding high fees.
• Getting better features (like mobile apps).
• Opening a joint account with a partner.
• Upgrading from a student to an adult account.

Think about your needs before deciding. Is your current provider meeting them? If not, it might be time for a change.

How can I cancel my bank account? General steps

Before closing your account, make sure you:

1. Have all your money transferred out.
2. Cancel any automatic payments or direct debits.
3. Return your debit/credit cards and checkbook.

Then follow our checklist:

1. Open a new account. Most Czech banks let you open an account online or in-person.
2. Move money to a new account. Check if your new service provider has a minimum deposit. In the Czech Republic, this is often 0-1,000 CZK.
3. Update recurring payments. Redirect your trvalé příkazy (standing orders) and inkasa (direct debits) to the new account.
4. Check for pending transactions. Look for nezaúčtované platby (pending payments) on your old account. 
5. Close an old account. You will fill out a zrušení účtu (account closure) form. Unlike in some countries, notarization is not typical in the Czech Republic.
6. Get written proof. Ask for písemné potvrzení (written confirmation) that your account is closed. This protects you from any future fees.

Most banks in the Czech Republic, like Česká spořitelna and ČSOB, allow you to liquidate a bank account on the same day you request it.

How to close certain types of bank accounts

Now, take a look at some of the most common cases where you need extra attention to cancel a bank account.

Closing a joint account

According to a recent report by Bankrate, 39% of couples combine their budget. Joint bank accounts are popular in the Czech Republic too.

If you decide to cancel a joint bank account, your service provider may require an account closure request with both holders’ signatures. In this case:

1. Both account holders must agree to close.
2. Both must visit the establishment together.
3. Each person needs a valid ID.
4. Decide how to split any remaining funds.

If one person wants to keep the account, the other can usually be removed by visiting the bank and signing a removal request.

Inactive Account

An account is inactive if there has been no funds transaction for six months or more. 

Many Czechs forget old accounts. To close one:

1. Contact your bank customer service.
2. You might use online banking.
3. Verify identity (often with an SMS code).
4. If you want to open a new, follow the steps from our checklist above.

Deceased Person Account

Each year, about 110,000 Czechs handle a loved one’s account. You’ll need a death certificate, proof you’re the heir (will or court), and notary deeds. For example, Air Bank freezes accounts immediately, while ČSOB waits for court orders. When unsure, ask a lawyer specializing in inheritance law.

Can I cancel my bank account online?

While most Czech banking establishments prefer in-person closure, some offer phone options. You will need to verify your identity, often through security questions or a code sent to your phone. 

If you can’t find the option online, message your bank’s customer service through their website or app. Some organizations have forms you can print, fill out, and mail in to cancel your bank account online.

Can I cancel a bank account with a negative balance?

The short answer is no. Czech law (Act No. 21/1992 Coll.) requires you to settle any debts before closing an account.

Options if you are in debt:

1. Pay off the amount.
2. Negotiate a payment plan.
3. Transfer the debt to a personal loan.

Unpaid debts can lead to lawsuits.

Bottom line

To make things easier and faster, follow the tips we have outlined above. And remember, always track your transactions and any communication with your bank. This way, you will have peace of mind knowing your account is closed and everything is in order.