Cancelling a New Bank Account Within 14 Days

Most new bank and savings accounts come with a 14 calendar day right to cancel, and it costs nothing to use. The rule comes from the Financial Conduct Authority's Banking: Conduct of Business sourcebook, which gives a banking customer the right to cancel a contract for a retail banking service, including a cash deposit ISA but excluding a cash-only Lifetime ISA, within 14 calendar days¹.

The clock usually starts when the account is opened, not when you first pay money in, though the exact trigger varies by bank and is set out in your account terms. Once you cancel, the bank must return any sums it has received from you without undue delay and within 30 calendar days of receiving your notice³.

The right applies to current accounts, easy access savings, notice accounts and cash ISAs. It does not apply to a cash-only Lifetime ISA, which follows a different set of rules, and it does not reopen a fixed-rate account once the 14 days have passed. What follows covers when the period starts, which accounts are excluded, how refunds work, and what happens if the bank cancels the account instead.

The 14-day right to cancel a new bank or savings account

The statutory right to cancel a distance contract relating to accepting deposits runs for 14 calendar days¹. In practice, banks apply this to current accounts, savings accounts and cash ISAs, and most state the right plainly in their terms.

RCI Bank tells customers: "You have the right to cancel your account within 14 calendar days from the date your account is opened"⁷. Chase current account terms say: "You have a legal right to cancel this agreement without giving a reason within 14 days of entering into it"⁸. Penny Post credit union savings accounts carry the same 14-day right under the Distance Marketing Directive, without financial or other penalty⁹. Leeds Building Society's E-Saver allows cancellation within 14 days by phone, in branch or by post¹⁰.

The right is not limited to current accounts. Innovative finance ISAs, which hold peer-to-peer loans rather than cash deposits, also carry a statutory right of cancellation for 14 days after opening the account¹¹. Loanpad, an ISA provider, confirms customers can cancel within 14 days of the day the ISA account was opened¹².

Because the trigger date differs between banks, the practical step is to check the cancellation clause in your own account terms. Some count from the date the account is opened, some from the date you enter the agreement, and a few from your first deposit. If you are close to the deadline, put your cancellation in writing and keep a record of when you sent it.

When does the 14-day cancellation period start?

The start date is not the same at every bank, and it is the single most common reason a cancellation is rejected as late. Three patterns appear in the terms.

The first is the date the account is opened. RCI Bank counts 14 calendar days from the date the account is opened⁷. Chetwood Bank notice accounts allow cancellation within 14 days of opening¹³.

The second is the date you enter the agreement. Chase counts 14 days from entering into the agreement⁸. Bank of Ireland personal current account terms say you may cancel within 14 days beginning with whichever is the latest of a set of listed events¹⁴.

The third is the date of your first deposit. Atom bank's Easy Access Cash ISA can be cancelled within 14 days of your first deposit¹⁵.

Switching adds a further wrinkle. Virgin Money's Current Account Switch Agreement states: "The 14 day period begins the day after you authorise us to switch your account, unless you have agreed to the switch before receiving this Agreement, (e.g. online or over the phone) in which case the 14 day period begins the day after you receive this Agreement"¹⁷.

Accounts you cannot cancel: fixed-rate savings and other exceptions

The clearest exclusion is the cash-only Lifetime ISA, which is carved out of the standard retail banking cancellation right². Everything else turns on the account's own terms rather than a blanket rule.

Fixed-rate savings accounts are not excluded, but the window is narrow. AIB's Fixed Rate Saver allows you to "cancel your account by contacting your branch in writing within 14 calendar days following reinvestment"¹⁸. Once that period closes, the money is committed for the term.

Notice accounts behave similarly. Aldermore's notice account allows cancellation within 14 calendar days of opening, after which the account is cancelled and the money returned without charges or notice²⁰. Chetwood Bank notice accounts allow cancellation within 14 days of opening¹³.

Cash ISAs are covered. Lloyds' Cash ISA Saver and 1 Year Fixed Rate Cash ISA can both be cancelled free of charge within 14 days of opening²¹. Halifax's ISA Bonus Saver carries the same 14-day free cancellation²³. Barclays states that if you contact it within the period to cancel, "the agreement between us will be cancelled, and the balance on your account and any gross interest earned will be repaid to you"²⁴. Charter Savings Bank confirms that for all accounts including all Cash ISAs, you can cancel within 14 days of opening, with savings and any interest earned returned²⁵.

Do the same cancellation rules apply to a Lifetime ISA?

No. A cash-only Lifetime ISA is expressly excluded from the 14 calendar day cancellation right that applies to other retail banking services². The FCA reminds firms that the cancellation rules in COBS 15 apply to the cancellation by a banking customer of a cash-only Lifetime ISA, which means the separate Lifetime ISA framework governs instead².

Under that framework, the right to cancel is replaced with a 14 calendar day pre-contract right to withdraw your offer²⁶. Separately, legislation provides that a Lifetime ISA for which the account manager receives notification of closure within 30 days after the latest applicable cancellation period start date is treated as never having been such an account⁴.

That 30-day rule matters because it determines whether the account is treated as having existed at all. If it is treated as never having existed, the usual withdrawal charge that applies to Lifetime ISA money taken out before age 60 does not arise in the same way. The Financial Ombudsman Service has considered a case involving a transfer that backdated a Lifetime ISA, restarting the 12-month eligibility for withdrawing the money²⁹.

For a Lifetime ISA opened following a personal recommendation or ready-made suggestion, where the contract is not a distance contract, the cancellation period is 30 calendar days²⁶. On death, a Lifetime ISA ends on the date of death, and there is no charge to withdraw the funds or assets³⁰.

Getting your money back: 30 days for refunds, and what you may be charged

Once you cancel, the bank must return any sums it has received from you without undue delay and within 30 calendar days of the day it receives your cancellation notice³. The same 30-day deadline applies to your side of the bargain: if you have received money or property from the bank, it is entitled to that back, and you have 30 calendar days from dispatching your cancellation notice to return it³.

In practice, many banks return money faster or state the deadline in their own terms. Chetwood Bank says it will return any money held in the account to your nominated current account within 30 calendar days from the date you tell it you wish to cancel¹³. Bank of Ireland's Classic Saver allows cancellation within 14 days of opening, with money returned in full with interest³¹. Aldermore returns money without charges or notice when you cancel within 14 days²⁰.

The cancellation right itself does not carry a fee. Where a charge can arise is if you have used the account before cancelling. If you have drawn on an overdraft, that is money you have received from the bank and it can be reclaimed. Citizens Advice notes that if you have received money already, you must pay it back, and the lender must give you 30 days to do this³².

For distance contracts more broadly, the Financial Services (Distance Marketing) Regulations 2004 provide that a refund is due within 30 calendar days of cancelling³³. Where a credit agreement rather than a deposit account is being cancelled, a template letter from Citizens Advice asks the firm to confirm within 14 days that the agreement has been terminated and that any monies paid will be refunded³⁴.

How long does the bank have to return my money after I cancel?

The statutory deadline is 30 calendar days from the day the bank receives your cancellation notice, and the money must be returned without undue delay³. That is the outer limit, not a target, and several banks state a shorter or equivalent period in their own terms.

Chetwood Bank returns funds within 30 calendar days from the date you tell it you wish to cancel¹³. Aldermore cancels the account and returns the money without charges or notice when you cancel within 14 calendar days of opening²⁰. Bank of Ireland's Classic Saver returns money in full with interest³¹.

If the money has to come back by a slower route, timing can stretch. Santander notes that once a cheque is cancelled, it takes at least 5 working days to credit the funds back to your account³⁵. That is a payment-specific rule rather than the cancellation deadline, but it affects when the money actually lands.

If the bank misses the 30-day deadline, that is a service failure you can complain about. Start with the bank's formal complaints process, and if it is not resolved, the Financial Ombudsman Service can look at it free of charge.

When the bank cancels for you: missing a minimum deposit on a fixed-term account

Some fixed-term accounts require a minimum balance to be paid in within a set period, and the bank will close the account if it is not met. Afin Bank's fixed term accounts, across the 1-year, 2-year, 3-year and 5-year issues, all state: "If you do not meet the minimum balance within 14 days of opening your account, we will cancel your account without penalty or notice and return your funds to your Nominated Bank Account"³⁶.

That is a cancellation by the bank, not by you, and it carries no penalty. The money goes back to your nominated account. The practical point is that the 14-day window cuts both ways: it is the period in which you can walk away, and in some fixed-term products it is also the period in which you must fund the account.

Where a bank closes an account because you have broken the terms, different notice rules apply. MoneyHelper notes that if a bank closes a basic bank account for reasons such as opening another UK bank account, not using the account for over two years, moving abroad, fraudulent use, or abuse towards staff, it will give you at least two months' notice⁶. Separately, banks must provide at least 90 days' notice before terminating an account opened on or after 28 April 2026, and give a clear reason⁴¹.

If your bank changes its terms, you have a further exit route: you can close the account at any time up to 60 days from the day you were told about the changes, without giving notice or paying extra charges⁶.

What protects you, and where it stops

The 14-day cancellation right is a statutory protection, not a goodwill gesture, and it sits alongside other safeguards. The bank must return your money within 30 calendar days³. If you have received money from the bank, you get 30 days to repay it³. If the bank changes its terms, you get up to 60 days to close the account without notice or extra charges⁶.

Where the protection stops is at the edge of the 14-day window. Once it closes, a fixed-rate account locks the money in for the term, and a notice account applies its notice period. The right also does not extend to a cash-only Lifetime ISA, which has its own 14-day pre-contract withdrawal right and a 30-day closure rule instead⁴.

If something goes wrong, the bank's complaints process is the first step. If that does not resolve it, the Financial Ombudsman Service is free and independent. MoneyHelper offers free, impartial guidance on banking problems, and Citizens Advice can help with the paperwork, including template letters for cancelling agreements³².