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EFTs, or electronic fund transfers, allow consumers, businesses, and banks to move money quickly between accounts. These transfers can take a few minutes to a few days, depending on their size and scope.

Examples of EFTs include your paycheck arriving in your bank account every pay period without you lifting a finger or your scheduling recurring payments to a service provider (such as your utility company) without needing to write a check and mail it. These electronic transactions allow money to move between a payor and payee, often within seconds. In this article, you’ll learn more about EFTs in banking and the pros and cons of this powerful financial tool.

What Is the Meaning of EFT (Electronic Funds Transfer)?

The definition of an electronic funds transfer (EFT) is the digital movement of money between financial institutions, bank accounts, and people. Unlike paper methods, such as cash or checks, EFTs facilitate payments through an electronic network. Individuals, businesses, and banks use EFTs daily to purchase goods and services and pay workers.

Different EFT Payments

The term EFT includes many types of transactions. Here are some of the different kinds of EFTs that are possible:

Credit and Debit Card Transactions

Credit and debit cards use electronic payments to process purchases made in person or online. In addition, you can use EFTs to pay bills, such as for phones or utilities, and transfer a credit card balance to a new credit card account.

Direct Deposit

Direct deposit is how approximately 95% of employees are paid by their employers. The majority of U.S. employees receive their paychecks electronically by direct deposit instead of a paper check. This type of EFT is usually an Automated Clearing House (ACH) transfer (more on what that means below).

Electronic Checks

With electronic checks (or Echecks), you can make a payment with your checking account without paper checks. Instead, you can provide your routing and account numbers to a business and authorize a payment from your bank account.

ATM Transactions

ATMs use EFTs to enable cash withdrawals and transfer funds between your bank accounts. Every time you turn up at a terminal to take out some $20s, that’s an electronic funds transfer at work, fueling the transaction.

Pay by Phone

As with an electronic check, you can make a purchase by providing a business with your bank account and routing numbers over the phone. Then, the business can communicate with your financial institution to obtain payment.

How Do EFTs Work?

EFTs work by digitally transferring funds between parties, such as a payor and a payee. The payor provides the information necessary for payment, such as a card number or account information. Then, the relevant financial institution performs an EFT, sending the designated amount of funds to the payee’s account at their financial institution.

For example, say you make a purchase online using your credit card. The merchant will use your card information, including the number, expiration date, and security code, to obtain payment from your credit card company. Then, the merchant receives payment through an EFT.

P2P vs EFT

A peer-to-peer payment system (P2P) like PayPal or Venmo also uses EFTs to move money between users and their financial accounts. Specifically, you can connect your credit card, bank account, or debit card to your P2P account. Then, to send money to another user, the P2P company will initiate an ETF from your financial institution to pull the money needed. In addition, you can also deposit funds from your P2P account into your bank account.

You can also usually leave funds in your P2P account to eliminate the ETF needed to move funds to and from your bank account. Instead, money can sit in your P2P account until you want to pay another user.

What Is ACH vs EFT?

Automatic Clearing House (ACH) indicates a specific type of EFT and the network in which it occurs. For example, your direct deposit from your job is through an ACH payment. Likewise, bank transfers are performed by ACH.

What sets the ACH network apart is that it facilitates payments in batches three times daily. As a result, transactions can usually take one to three days to process. Conversely, an EFT from a credit card, which is not an ACH transaction, typically happens instantaneously.

Pros and Cons of EFT

EFTs revolutionized how money is transferred. However, they have advantages and disadvantages to consider.

Pros

First, the upsides of EFTs:

Convenience

Firstly, EFTs are typically very convenient. They save consumers trips to the bank and eliminate the need to carry around cash and paper checks. Likewise, they facilitate a multitude of transactions without effort from the sender or recipient.

Speed

EFTs can also allow you to send and receive payments over long distances within a span of hours or a few days at most, depending on the type of transaction. In fact, some EFTs may occur within seconds.

Consumer Protection and Security

The Electronic Fund Transfer Act (EFTA) provides a layer of protection for EFTs. This legislation empowers consumers to dispute unauthorized transfers and seek repayment for fraudulent activity or bank negligence.

In addition, the EFTA spells out guidelines and recourse if your debit card is lost or stolen and used without authorization. Depending on how quickly you report the issue, you could be liable for nothing, $50, $500, or (if you fail to report the issue for more than 60 days) the full amountaccessed by a thief or scammer.

Also, while no financial transaction can claim to be 100% secure, EFTs do use multiple layers of encryption to protect transactions, which means sensitive data is encoded several times so it cannot be read by others. Identity verification procedures also play an important role in transactions to keep them as safe as possible.

Cons

Next, consider the potential downsides of EFTs:

Limited Reach

Certain EFTs aren’t compatible with foreign accounts. For example, sometimes debit cards aren’t accepted overseas. Instead, you might need the country’s currency, a card with specific international capabilities, traveler’s checks, or a wire transfer to pay for things. In addition, your international EFTs may incur extra fees.

Fees

EFTs aren’t always free. For example, paying your utilities by credit card might require a fee (say, 1% of the total amount or a flat fee) on all charges. As a result, you might pay for the convenience of an EFT.

Potential Hacks and Scams

EFTs use digital networks to transfer your financial information. Most of these are constantly updating their security protocols, but there is the chance, however slight, of losing money to hackers or fraudsters. Although the EFTA provides your transactions with a level of protection, you might become a victim of a scam or have your banking information fall into the wrong hands.

For a quick comparison, here’s a table of the potential upsides and downsides of EFTs:

EFT Pros	EFT Cons
Your permission is not required	Your permission is required
Convenience	Limited reach
Speed	Fees
Consumer protection and security	Potential hacks and scams

The Takeaway

EFTs, or electronic funds transfers, are speedy, convenient monetary transactions that can make everyday financial activity possible. For example, EFTs power credit and debit card payments and direct deposits. These transactions are often free and save time for all parties involved. Though you may not realize it, EFTs conduct many of the transactions that typically occur in personal banking.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

How do EFT payments work?

EFT payments work by moving money electronically between financial institutions and people. Specifically, financial institutions work with the sender’s and the receiver’s account information to move funds to process bill payments, direct deposits, account transfers, credit card transactions, and more.

What is the main difference between an ACH and EFT?

An ACH (Automatic Clearing House) transfer is a specific type of EFT activity. For example, your direct deposits, payment app transfers, and online bill payments usually use the ACH network to conduct transactions.

How long do EFT transfers take?

EFT transfers take varying amounts of time depending on the transaction. For example, credit and debit card payments are usually instantaneous. On the other hand, your bill payments may take one to three days to clear.

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Photo credit: iStock/dragana991

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Every debit card comes with its own unique number imprinted on the front or back of the card. This number, typically 16-digits long, is used by a merchant or card processor to identify your specific account, ensuring that your transactions are approved and processed correctly.

Understanding the numbers on your debit card can be crucial for managing your finances effectively. Here’s a closer look at what your debit card number means, how to find it (even if you don’t have your debit card on you), plus how to keep your debit card numbers from falling into the wrong hands.

What Do the Numbers On a Debit Card Mean?

When you open a checking account, you typically receive a debit card that features a long number — referred to as a primary account number, or PAN — often spaced into four groups of four digits. While these numbers may seem random, they actually contain critical information in a specific format that identifies your bank, as well as your specific account. Below, we decode the typical 16-digit debit card number, though keep in mind the length of this number and its parts may vary.

Digit 1

The very first number in your debit card number is called the major industry identifier (MII). It indicates the category of the card issuer, such as bank, card network, airline, or the government.

Recommended: How to Use a Debit Card

Digits 2 to 6

The next five digits (typically) represent the financial institution that issued the debit card. Together with the MII, the first six digits of the debit card number make up the bank identification number (BIN), also referred to as the issuer identification number (IIN). This number helps the merchant identify the financial institution that issued the card and tells them how the transaction should be processed.

Digits 7 to 15

lose your debit card or it gets stolen, but often stays the same if the card is replaced due to expiration or damage.

Last Digit

The very last digit of your debit card number is known as the check digit. This number has a mathematical relationship to the previous numbers on the card. Using a specific equation (called the Luhn algorithm), this last digit can immediately detect whether or not a card number is valid. It is used to catch user typing errors as well as certain types of fraud.

Recommended: Different Types of Bank Account Fraud to Look Out For

Where to Find Your Debit Card Number

You can usually find your debit card number, or PAN, embossed on the front of the card, commonly around the center. In some cases, the number may be featured on the back of the card.

If you don’t have your debit card on you and want to make a transaction, you may also be able to find your debit card number by logging into your account online or using your bank’s mobile app. Look for an option such as “View Account Information.”

You may also be able to find your debit card number by looking at your electronic or paper bank statements. Your debit card may be included in the details of any debit card transactions you made during the statement period.

Keep in mind, however, that many banks do not display the full card number online or in print for security reasons.

Other Parts of a Debit Card

In addition to the debit card number, there are some other key pieces of information on your debit card. Here’s a closer look.

Bank Logo

The logo of your bank is typically displayed on the front of the card and identifies the issuing bank. This logo helps cardholders and merchants quickly recognize which financial institution issued the card.

Your Name

Debit cards typically feature the cardholder’s name on the front of the card below the debit card number. This identifies you as the authorized user of the card.

Smart Chip or Magnetic Stripe

Debit cards feature a magnetic stripe (on the back of the card) or, more commonly, a smart chip (on the front) that encrypts your account information. This enhances the security of in-person transactions, making it more difficult for fraudsters to clone the card.

Security Code (CVV)

The security code, also known as the CVV (card verification value) is a three-digit number found on the back of the card. It’s also sometimes referred to as the card verification code (CVC) or the card security code (CSC). This code is used to verify that you have physical possession of the card when making online or over-the-phone transactions.

Bank’s Contact Information

Information about how to contact your bank, such as its mailing address, website, and phone number, is typically printed on the back of your debit card.

Payment Network Logo/Hologram

If your debit card allows you to process transactions through a credit card network, the credit card’s logo and, often, hologram, will be printed on the card, usually in the corner.

Keep in mind, however, that choosing “credit” rather than “debit” during a transaction doesn’t turn your debit card into a credit card. The money will still be withdrawn from your checking account. The key difference is that a transaction processed as “credit” could take several days to authorize and complete, while a “debit” transaction is deducted from your account almost immediately. With a “credit” transaction, you’ll also sign versus typing in a personal identification number (PIN).

Recommended: Guide to Using a Credit Card Like a Debit Card

A Signature Strip

The back of your debit card may contain a box for you to sign. A merchant may look at this if a debit transaction is processed through a credit card network and requires you to sign.

Expiration Date

The expiration date, typically printed on the front of the card, indicates the month and year when the card will expire. After this date, the card will no longer be valid for transactions.

Tips for Protecting Your Debit Card Number

Debit card numbers contain critical information about your financial account, so you generally don’t want anyone but you to have access to them. Here are six ways to protect your card information and help prevent debit card fraud.

1.    Only make secure online transactions: Before using your debit card for an online transaction, you’ll want to make sure the website uses “https” not “http” in the URL. The “s” means that the website uses a secure sockets layer (SSL) that creates an encrypted link between a web server and a web browser.

2.    Use a digital wallet: Consider linking your debit card to the digital wallet app on your smartphone. When you pay with your digital wallet instead of a physical card, your debit card numbers are encrypted and not visible to the merchant (or any nearby customers).

3.    Only use ATMs at banks: ATMs located in gas stations, convenience stores, subway stations, and elsewhere generally run a higher risk of having a “skimming” device attached by a criminal that could steal your debit card data. While this can happen at a bank ATM as well, it tends to be less likely due to surveillance cameras.

4.    Be wary of phishing scams: You’ll want to be cautious of any emails, texts, or calls requesting your debit card information. Banks will never ask for your card number or PIN via these methods.

5.    Monitor your account: Time is of the essence when it comes to recouping any funds lost to debit card fraud. So be sure to regularly check your bank statements and transaction history for any unauthorized charges. If you spot any suspicious activity, report it to your bank immediately.

6.    Report lost or stolen cards right away: If your debit card gets lost or stolen, it’s a good idea to contact your bank as soon as possible and have the card blocked.

Recommended: Pros & Cons of Using a Debit Card Online

The Takeaway

Your debit card number is a unique identifier linked to your bank account. You can use your card number, along with your CVV and PIN, to process a transaction even without a physical card. Understanding the numbers on your debit can help you safeguard your information and enjoy all the benefits that come with your card.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Should you write down your PIN number to remember it?

It’s generally not a good idea to write down your personal identification number (PIN), as this can compromise your account’s security should it get lost or stolen. You’re better off memorizing your PIN. If you have difficulty remembering it, consider using a number that has personal significance but isn’t easily guessed by others. If you must write your PIN down, be sure to store it in a secure, locked location separate from your debit card.

Can a scammer use your debit card without a PIN number?

A scammer may be able to use your debit card without a PIN number for fraudulent online or phone transactions, where only the card number, expiration date, and CVV (Card Verification Value) are required. It’s also possible to use a debit card without providing a PIN by choosing the “credit” rather than “debit” option during an in-person transaction.

What is the most important debit card number?

The most important debit card number is the 16-digit card number typically printed on the front of your card. This number is essential for identifying your account and processing transactions. It includes the bank identification number (BIN), which identifies the issuing bank, and the personal account number (PAN), which is unique to your account. Protecting this number is crucial to prevent unauthorized use and debit card fraud.

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Photo credit: iStock/urbazon

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Notaries witness the signing of legal and financial documents and certify them as being valid. If you need to have documents notarized (say, you are working your way through mortgage paperwork), you may be able to have that done at your bank or credit union.

A bank notary can review your documents with you, verify the identity of all signers, and witness the signing. In other words, they can help you make your paperwork official. Do all banks have a notary? Not necessarily, but many financial institutions offer this service to their customers, typically for free.

Learn more about what a bank notary is, when you might need their services, where else to find a notary public, and how much getting a document notarized will likely cost.

What Is a Bank Notary?

A notary or notary public is an appointed official who’s authorized by the state government to witness the signing of documents and verify the validity of the signatures. It’s a notary’s job to ensure that the signers of a document are not acting under duress and that they are who they say they are.

A bank notary performs those services in a banking setting. Like other notaries, bank notaries must complete the required training that’s mandated by state law in order to receive a commission.

Any bank employee who meets the eligibility requirements can complete notary training. This can include tellers, loan officers, or investment bankers. When picking a bank, you might want to check to see if notaries are available. It can be convenient to have that service available at your financial institution when the need for a notary crops up.

How Notarization Works

When a document is notarized, it means that it’s been reviewed by and signed in front of a notary. Notarization is designed to ensure that the document and the signatures on it are not fraudulent and that the individuals who sign do so of their own free will and are not under duress.

The notarization process involves three steps:

•  It starts with the initial review of the document and vetting of the signers. If you take a document to a bank notary to be signed, they’ll check your ID (and the ID of any other signers present), and ask questions to make sure you know what you’re signing and that you’re not being pressured or forced to do so.

•  Next, the notary will look at the document itself to ensure that it meets the requirements for notarization. For example, some states require that documents being notarized have no blank spaces in order to prevent fraud.

•  Once the notary verifies your identity and scans the document, you’ll sign it in front of them. They’ll then complete a notarial certificate, add their seal to the document, and record the notarization.

There is one thing notaries cannot do, and that’s offer legal or financial advice.

What Do Bank Notaries Do?

Bank notaries are responsible for notarizing documents for the bank’s customers. Credit unions can also employ notaries to notarize documents. It’s one of the benefits of local banking.

But what do banks notarize? There are several different types of notarizations that banks can handle.

Jurats

A jurat is a type of notarial act that applies to documents relating to civil or criminal proceedings. You may need a bank notary for a jurat notarization if you’re signing something like a financial affidavit for a divorce proceeding. A financial affidavit is an official statement of your income, assets, and debts. A court can use that document as a guide when determining what to award in child support or alimony.

Certified Copies

Bank notaries can issue notarizations for certified copies of official documents. For example, say that after getting divorced you started a new job and began contributing to a 401(k). You later change jobs and want to cash out the money that you saved in the plan. Your 401(k) plan manager might ask for a certified copy of a divorce decree before releasing the money to you.

Acknowledgements

An acknowledgement notarization may be required for documents that specify the transfer of assets or financial authority from one person to another. For example, say that your aging mother wants to name you their power of attorney as part of the estate planning process. A bank notary could certify the document and witness both your signatures in acknowledgement that the two of you have an agreement and no one is acting under duress.

Are Bank Notaries Free?

Notaries can charge fees for their services, but banks may offer notarization for free to their customers. So, if you have a checking account, savings account, or CD account with the bank, you should be able to get notarization services without paying anything. Or if you have a share draft account at a credit union, you might get notary services for free.

Can a bank notarize a document for someone who is not a customer? Certainly, but you might pay a fee to get a document notarized if you don’t have an account there. The good news is that notary services typically aren’t that expensive.

What you’ll pay for notary services, if you have to pay, will depend on state law. Each state has its own guidelines for what notaries can charge and there may be different fees for different types of notarial acts. Generally speaking, you may pay anywhere from $2.50 to $25 to have a document notarized if you’re not able to get it done for free at your bank.

Recommended: Benefits of Automating Your Finances

How Do You Know If Your Bank Has a Notary?

Do banks have notaries? Yes, but not all of them. It’s possible that your bank may not offer notary services. Fortunately, there are a few ways to find out whether your bank has a notary. For instance, you could:

•  Ask in person at a branch

•  Call, email, or otherwise contact your local branch

•  Check the bank’s website

•  Review your account agreement.

What if you have accounts at an online bank? You won’t be able to visit a branch to get documents notarized in person, though your bank might offer electronic notarization online. That’s something to consider if you’re debating whether to choose traditional vs. online banking to manage your money.

Other Places to Find a Notary

Banks are not the only place that you can get notary services. If you need to get a document notarized and your bank doesn’t offer notary services, you can also try:

•  Office supply stores

•  Shipping or mailing stores

•  Law firms or law offices

•  Accountant or tax preparer’s offices

•  Real estate offices

•  Local Department of Motor Vehicles office

•  Insurance agencies

•  AAA

•  Public libraries.

Again, just keep in mind that you might have to pay a fee to get a document notarized at any of these locations.

You may be able to find an independent notary near you who is willing to travel to your home or workplace to notarize documents. There are also remote notary services that offer electronic notarization, though these may not be considered valid in every state.

Recommended: Building a Line Item Budget

The Takeaway

A bank notary isn’t something you might need on a regular basis, but it’s good to know that you have access to one if you have a document that requires notarization. If you’re shopping for a new bank and don’t necessarily need branch banking, you might consider taking your accounts online.

FAQ

What is bank notarization?

Bank notarization is the process of getting documents notarized at a bank. A bank notary can complete different notarial acts to certify the signature of legal or financial documents. Bank notarization is often offered free of charge to banking customers.

Can local banks notarize documents?

Local banks can notarize documents if they have at least one notary on staff. Bank notaries, like other notaries, must receive a commission from the state in order to witness signatures and certify them on documents.

Where can I get notarized for free?

You can likely get documents notarized for free at your bank if the bank offers that service to customers. If you get documents notarized at other locations, such as shipping stores or office supply stores, you may have to pay a fee for notarization services.

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Photo credit: iStock/megaflopp
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.

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Credit reports contain financial records of debts you owe and ones you’ve paid off. Positive information can remain on your credit reports indefinitely. Most negative information falls off your credit after seven years, though certain types of bankruptcy filings can remain longer.

Here’s a closer look at how financial records impact your credit reports.

How Long Do Inquiries Stay on a Credit Report?

When you apply for a loan, credit card, or line of credit the lender can perform what’s called a hard inquiry. This simply means that they pull copies of your credit reports, which they’ll use to make an approval decision.

Hard inquiries show up on a credit report and they’re included in your FICO® credit score calculations. Each new inquiry remains on your credit report for two years, according to FICO. However, they’re only considered in credit score calculations for the first 12 months.
Soft inquiries occur when you check your credit reports yourself or a company pulls your credit for the purposes of prequalifying or preapproving you for a loan. These inquiries won’t show up on a credit report, and they don’t have any impact on your credit score.

That distinction is important if you’re learning how to build credit.

Recommended: How Long Does It Take to Build Credit?

How Long Does Negative Information Remain on Your Credit Report?

Negative information on a credit report is any information that’s harmful to your credit score. What affects your credit score negatively? The list includes:

•   Late payments

•   Missed payments

•   Collection accounts

•   Charge-offs

•   Judgments

•   Foreclosures

•   Bankruptcies

Generally, negative information can stay on your credit report for up to seven years. Chapter 7 and Chapter 11 bankruptcy, however, can stick around on your credit report for 10 years.

In terms of how negative items impact your credit score, age matters, according to FICO. Newer negative items, such as collections or late payments, have a more immediate impact on your scores than negative items that are several years old. A money tracker app makes it easy to track your credit and your money in real time so you can get ahead financially.

How Long Does Positive Information Remain on Your Credit Report?

Positive information can remain on credit reports indefinitely. Credit bureaus are not required to remove this information, though they may do so at the seven-year mark. Examples of positive information that can stay on a credit report, regardless of time, include:

•   On-time payments

•   Open accounts that have a $0 balance or a low balance, relative to your credit limit

•   Closed accounts that you’ve paid in full

Positive items on a credit report are a good thing, since they help your credit scores. On-time payments and low balances on credit accounts have the biggest impact overall. Making biweekly payments or increasing your credit limits are two helpful ideas for how to lower credit utilization. Using a spending app to manage your budget and expenses can also help keep credit card balances low.

How to Remove Negative Information From Your Credit Report

Negative information that’s accurate cannot be removed from a credit report. For example, if you miss several payments on a loan but get caught up later, those late payments will stay on your credit reports until you hit the seven-year mark.

Inaccurate information, on the other hand, can be removed through the dispute process. Examples of inaccurate or incorrect items you could dispute on a credit report include:

•   On-time payments that were not properly attributed to your account

•   Credit accounts that don’t belong to you

•   Paid-in-full accounts that still show a balance on your credit reports

•   Account activity relating to fraudulent activity or identity theft

You’ll need to dispute the inaccurate information with the credit bureau that reports it. All three credit bureaus — Equifax, Experian, and TransUnion — allow you to initiate credit report disputes online. You’ll need to fill out a dispute form and provide some details about the dispute.

Once the credit bureau receives the dispute, it’s required to investigate your claim and return a decision to you promptly. If the credit bureau finds that there’s an error on your reports, it’s legally required to remove or update the information.

Your credit score updates monthly for the most part. Enrolling in credit score monitoring can make it easier to track changes, including changes to your score following a dispute.

Recommended: Why Did My Credit Score Drop After a Dispute?

Do You Still Have to Pay a Debt If It Fell Off Your Credit Report?

A debt can fall off your credit report if enough time passes. However, the amount owed doesn’t go away. Creditors and debt collectors could still attempt to get you to pay if the statute of limitations hasn’t passed.

The statute of limitations on debt allows creditors and debt collectors a set window of time in which to sue you for an unpaid balance. Each state determines how long the statute of limitations applies but in all states, its expiration doesn’t remove your legal obligation to pay what you owe.

Should you pay old debts? Ethically, yes. But if a debt falls off your credit report and the statute of limitations has expired, it would be very difficult for a creditor to force you to pay via a lawsuit.

The Takeaway

Reviewing your credit reports regularly is a good way to see what’s helping or hurting your score at any given time. If you have negative items on your credit report, you might see your score drop, but those points can come back with the passage of time.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What stays on a credit report forever?

Positive information can stay on a credit report forever, as credit bureaus are not required to remove any items that help your credit score. However, credit bureaus can choose to remove positive information after seven years.

Can credit information stay on my credit report for over 7 years?

Credit information can stay on your credit report for over seven years if it’s positive. Generally, negative information cannot stay on your report for more than seven years, unless you file for Chapter 7 or Chapter 11 bankruptcy. In that case, the bankruptcy filing could stay on your report for 10 years.

Do old accounts fall off a credit report?

Old accounts can fall off your credit report after seven years if they have negative information. Positive information from old accounts or newer ones can stay on your credit reports indefinitely.

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SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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From time to time, it may be necessary to close a bank account. Depending on your bank’s policy, you may need to submit an account closure letter to make it final.

A bank account closure letter is simply a written request to have one or more accounts at a financial institution closed. If you have to submit a bank letter to close an account, you may have the option to mail it in or return it in person at a branch.

Knowing how to write a letter to close a bank account can ensure that you’re not leaving any loose ends behind if you decide to move your money elsewhere. Here, you’ll learn:

•  What is a bank account closure letter?

•  Are bank closure letters required?

•  What must a bank closure letter include?

•  What do sample bank closure letters look like?

What Is a Bank Letter to Close an Account?

A bank account closure letter is a letter you write to your bank or credit union asking them to close your account. If you’re closing a savings account at one bank so you can open a new account elsewhere, for example, the bank might ask you to do so in writing.

Writing a letter to close a bank account can ensure that it’s actually closed and that no new deposits or withdrawals can be made. You can write a closing bank account letter to your bank for one account that you have there or for all of them. You can also specify where the bank should forward any remaining money in the account(s).

If you write a bank account closure letter, it’s still a good idea to confirm that the account is closed and update account information for any automatic payments or direct deposits you have set up. Otherwise, you could end up reopening a closed bank account by accident if the bank allows new deposit or credit transactions to post.

Recommended: What Happens If a Direct Deposit Goes to a Closed Account?

How Do Bank Closure Letters Work?

Bank account closure letters work by directing the bank to close any accounts that you specify in the letter. Your bank may have an account closing letter template or form that you can download from its website or pick up at a branch. If not, you can draft your own bank closure letter by including the required information.

Once you submit a bank closure letter to the bank, they’re supposed to close the account or accounts listed in the letter. Any other accounts not listed in the letter should not be affected.

A bank closing letter may or may not need to be notarized. If your bank requires notarization, you may be able to have the bank notary witness your signature at a branch. Bank notary services are usually free for existing customers.

Note that if you have a joint bank account, both of you may need to sign the letter for account closing.

Are Bank Closure Letters Required?

Whether you need to provide a letter to close a bank account or not can depend on the bank. It’s possible that you may be able to close a bank account over the phone or at a branch, without having to submit anything in writing.

You may be more likely to need a written bank account closure letter if there are special reasons for the closure. For example, a letter may be necessary if you:

•  Were named as a beneficiary to a bank account and are closing it after the death of the primary account owner.

•  Are going through a divorce and it’s necessary to close the account to divide assets.

•  Need to close an account for someone who’s passed away and you’re acting as their executor.

Your bank or credit union should be able to tell you when, if ever, a bank account closure letter might be needed. If a letter is necessary, your bank may also be able to provide you with a template or, at the very least, tell you what information you’ll need to include.

Recommended: How to Automate Your Finances

Bank Letter to Close an Account Sample

Bank closure letter templates can vary from bank to bank, but they generally include the same information. If you’re wondering what you can expect, here are a few sample bank account closing letters that you can use as a guide for what to include.

•  Heritage Bank account closing letter

•  First Bank of Highland Park account closing letter

•  Bank of America account closing letter template .

Again, not all banks offer a set template for a bank closing letter. U.S. Bank, for example, directs customers to mail in written requests but doesn’t provide a standard form for doing so.

How to Write an Account Closure Letter?

If you need to write an account closure letter to close a bank account, the process is fairly straightforward. The letter doesn’t need to be long; usually just one page will suffice. But your letter does need to include the right information, as follows:

Basic Information

The first thing to include is some basic information that’s common to any business letter. So, at the top you’ll write:

•  Name of the bank

•  Bank address

•  The date.

You can also add a separate line underneath that referencing what the letter is about. For example, you might add a line that says RE: Account closure for [your name].

After the initial information, you can follow up with the greeting. You can use Dear Banker or To Whom It May Concern if you’re not sure who will receive the letter.

Closure Request

Next, you’ll want to specify what you’re writing about. So, you might say something like:

“Dear Banker,
I’m writing to request the closure of the following accounts at your bank. Please close the account(s) listed below and forward a check for the remaining balance(s) to the address listed below. If you have any questions regarding this request, you can contact me in writing or by phone at XXX-XXX-XXX.”

You don’t need to go into detail about why you’re closing a bank account. If your banker asks, you can provide them with an explanation, but you shouldn’t be required to do so.

Account Information

After making the closure request, you’ll need to tell the bank which accounts to close. Specifically, you can include the following:

•  Account name(s) or type(s)

•  Account number(s)

Once you’ve listed out the accounts, you can ask the bank to send a written confirmation that your request was received and the accounts have been closed. The final step is to sign and date the letter so you can submit it to the bank.

Opening a Bank Account With SoFi

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Which documents are required to close a bank account?

If you’d like to close a bank account, all you might need is a bank account closure letter. Additional documents, such as a divorce decree or a death certificate, may be needed to close bank accounts that you own jointly or that belonged to someone else in the circumstances of a divorce or death.

Can you close a bank account without going to the bank?

If your bank allows you to close accounts online or over the phone, it’s possible to do so without setting foot in a branch. You can contact customer service to find out what options you have for closing a bank account and whether a bank closure letter might be required.

What constitutes proof of bank account closure?

It’s a good idea to get a written confirmation from your bank that an account is closed. That way, if there are any issues with the closure later, you have a paper trail to show that the bank acknowledged your request.

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Photo credit: iStock/Pheelings Media
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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