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Direct Deposit Goes to Closed Account

I have a closed bank account that has direct deposit from my employer. My employer sent money to this account. Will it accept it?

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Perhaps it will; perhaps not. Once the account is actually closed, the bank should not accept further deposits, even those from your employer. However, some banks have re-opened bank accounts when they have received deposits of this type. The only way to be certain is to contact the bank and ask.

If it is your intent to close the account and open an account elsewhere, it is your responsibility to update your employer in order to re-route your pay to the proper account or to have a check issued on payday. If you attempted to do that and your employer wasn't able to make the change promptly enough, your pay could end up in your old account or it could be returned to your employer, which would take a few days.

Published on BankingQuestions.com 1/14/10