Bank Closing Down? 5 Must-Know Strategies for Retirees

From Wells Fargo to JPMorgan Chase, banks nationwide are shuttering branches to save money and adapt as more people conduct their banking online and via mobile apps.

So far this year, several major banks, including Wells Fargo, TD Bank, JPMorgan Chase, Bank of America, and Flagstar, have announced branch closures across the U.S. The closures happened after a particularly busy 2024. Through the third quarter of last year, 944 bank branches closed their doors.

While the preference to conduct banking online and via mobile is growing across generations, millions of older adults visit branches in person.

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That’s particularly true among baby boomers, or those born between 1946 and 1964. The American Bankers Association found that 13% of baby boomers visit branches. Among Generation X, or those born between 1960 and 1980, 8% prefer to bank at a branch.

Meanwhile, 4% of millennials and Gen Z will visit a physical bank. That amounts to millions of Americans who still find value in banking in person.

What retirees can do in the wake of a local bank closing

“If your bank is closing a local branch, don’t panic — but don’t delay, either,” says Howard Dvorkin, CPA and Chairman of Debt.com. “Be proactive. Get support. And know that managing money in today’s world means staying flexible. With the right help, even big changes like this can become manageable.”

If you are among the people who use a physical bank and your local branch is closing, here are four things you can do.

1. Embrace online banking

The COVID-19 pandemic forced millions of Americans to try online shopping for the first time. After all, stores were shuttered, and that was the only option.

The same can be said for online banking, especially if you live in a rural area or small town where your bank is closing and your options are limited.

Sure, there is a learning curve with online banking, and yes, you may have to enlist the grandkids or a trusted friend to help get started. But online banking is not only convenient; once you get the hang of it, it is easy to do.

“Lots of online banks offer more services that make them a much more attractive option,” says Stephen Kates, a financial analyst at Bankrate. “A lot of these banks don’t have any costs built in, so they aren’t going to nickel and dime you. They don’t have as many annoying fees.”

If digital banking feels intimidating, Dvorkin says to ask for one-on-one help or seek free classes from local libraries or senior centers. “Banks increasingly offer these resources. There’s no shame in asking for help,” he says.

2. Rely on ATMs

Many people tend to be loyal to a bank. According to Bankrate data, the average banking customer has been with their financial institution for 15 to 17 years.

Breaking up may be hard to do, but the good news is that just because the branch is closing doesn’t mean you can’t access one of your bank’s ATMs. You won’t get charged for using an ATM owned by your bank, and you can make deposits and withdrawals from the screen.

Plus, you don’t have to worry about branch hours. If you have any questions, you can always call your bank for help.

3. Use a different bank branch

If your bank isn’t closing entirely, and there are other branches in the area, you can simply start banking at a new one. You won’t have to do anything other than travel potentially further to reach your bank.

“Start with a call to your bank and ask what support they offer during the transition. Many institutions provide help with setting up online banking or connecting with nearby branches,” says Dvorkin.

4. Search for an alternative bank

If all else fails, you can always switch to another bank that caters to retirees or consider moving your money to a credit union.

"Switching banks may seem stressful, but it’s easier than you think. Make a checklist — set up your new account, redirect direct deposits like Social Security, update bill payments, and then close your old account once everything’s transferred," says Dvorkin. "The key is to take it slow and focus on the basics: checking balances, making payments, and using alerts to monitor activity."

Credit unions are tied to the community and can be found throughout the country, said Alison Pahlkotter, an innovation product designer and research analyst at GreenPath Financial Wellness, a non-profit financial wellness counseling service.

You can find one near you through the National Credit Union Administration’s online search tool. Credit unions offer the same level of deposit insurance as the FDIC, so you don’t have to worry about losing your money.

“Credit unions for the average consumer are the identical experience,” says Pahlkotter. “I have my car loan through my credit union, a nice rewards credit card, and my deposit and checking accounts, plus I have a full online banking experience with them.”

5. Don't fight change

Change is hard, especially if you have been doing your banking at a particular branch for years, but it's important to embrace change. The sooner you do, the quicker you can get established online with a mobile banking app or at a new financial institution

Remember don't be afraid to ask for help or seek assistance from friends, family members or your community. There are many resources avaibale to help your during the transition.

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