What Happens When a Bank Branch Closes?

Your BSB Still Works — For Now

When a bank branch closes, the BSB number assigned to that branch does not stop working immediately. In almost all cases, the bank will redirect payments sent to the old BSB to a nearby branch or a centralised processing centre. This redirection happens silently — the sender does not need to do anything differently, and the payment reaches your account as normal.

However, this redirection is a transitional arrangement. Eventually, the bank will retire the old BSB entirely, at which point payments sent to it will be rejected. The timeframe for this varies: some BSBs remain active for years after a branch closure, while others are deactivated within months.

How BSB Closures Work

When a bank decides to close a branch, the process for the associated BSB typically follows this sequence:

1. Branch closure announced. The bank notifies customers and updates its branch locator. The BSB remains fully active.
2. BSB redirected. The bank updates the BSB entry in the national directory to show it as "Merged" with a reference to a replacement BSB (for example, "Refer to BSB 062-001"). Payments continue to be processed.
3. BSB deactivated. After a transition period, the bank removes the BSB from the active directory. Payments sent to the BSB are rejected.

You can check whether a BSB has been merged or discontinued using BSBFinder. Look up the BSB — if it shows as "Closed" with a referral BSB, payments are still being redirected. If it shows as "Discontinued," the BSB is no longer active.

What You Need to Update

Even though payments are redirected during the transition period, you should update your BSB with any organisations or individuals who send you money. This includes:

Priority updates

• Your employer — for salary payments
• Centrelink or government agencies — for benefits, tax refunds, or other payments
• Direct debit arrangements — for utilities, insurance, subscriptions, and loan repayments
• Anyone who pays you regularly — clients, tenants, family members

How to find your new BSB

Your bank will typically notify you of your new BSB by letter, email, or a message in your internet banking. You can also:

• Log in to your internet banking or mobile app — your account details will show the current BSB.
• Call your bank's customer service line and ask for the BSB assigned to your account.
• Visit a nearby branch and ask a staff member.
• Check BSBFinder — if your old BSB shows a "Refer to BSB" message, follow the link to see the details of the replacement BSB.

In many cases, your account number stays the same — only the BSB changes. But always confirm both with your bank.

The Difference Between Closed, Merged, and Discontinued

These terms appear frequently in BSB directories, and they mean different things:

A BSB can remain in "Merged" status for a long time. Some BSBs from branches that closed years ago are still listed as merged and continue to redirect payments. Others are deactivated relatively quickly. There is no fixed timeline — it is at the bank's discretion.

Why Are Branches Closing?

Australian bank branch closures have accelerated significantly in recent years. According to APRA data, more than 1,700 bank branches closed across Australia between 2017 and 2025. The key drivers include:

• Shift to digital banking. The majority of transactions now occur through mobile apps and internet banking. Many customers rarely visit a branch.
• Cost reduction. Maintaining a physical branch with staff, rent, and security is expensive relative to the declining number of in-person transactions.
• Post-merger consolidation. When banks merge, overlapping branches in the same area are closed. For example, the St George, BankSA, and Bank of Melbourne brands (all owned by Westpac) have seen significant branch consolidation.
• Regional population changes. Branches in areas with declining populations may no longer be commercially viable.

The impact is particularly felt in regional and rural communities, where a branch closure may mean the nearest banking service is hours away. The government and regulators have expressed concern about financial inclusion, but the trend continues.

What Happens to Your Account?

A branch closure does not affect your bank account itself. Your account remains open, your balance is unchanged, and your cards continue to work. The branch was simply a physical location — your account exists in the bank's central systems, not at a specific branch.

However, there are some practical impacts:

• In-person services like cash deposits, cheque deposits, and face-to-face consultations must be done at another branch or via alternative channels.
• Safe deposit boxes, if you held one at the closed branch, will need to be relocated.
• Relationship managers or branch staff you dealt with may be reassigned.

How BSBFinder Tracks Branch Closures

BSBFinder monitors the official BSB directory daily for changes. When a branch closes and its BSB is updated to "Merged" status, the change is recorded in our Change History with the date it was detected.

On each BSB detail page, the Change History section shows all modifications detected over time — including when a BSB was merged, when its address changed, or when it was discontinued. This gives you a clear timeline of what happened.

If you notice information on BSBFinder that appears to be outdated — for example, a branch that has closed but still shows as active — you can use the Report incorrect info button on the BSB detail page to let us know. Our data is sourced from the official Australian BSB directory, which may occasionally lag behind individual banks' own systems.

Tips for Managing a Branch Closure

1. Update your BSB proactively. Don't wait for payments to bounce. As soon as you know your branch is closing, find out your new BSB and update it everywhere.
2. Check direct debits. These are easy to forget. Review your bank statements for recurring debits and contact each provider with your updated details.
3. Keep a record of the old BSB. You may need it if an old payment fails or if you need to trace a historical transaction.
4. Set up internet banking if you haven't already. With fewer branches, digital banking becomes essential for day-to-day transactions.
5. Consider a multi-channel bank. If branch access is important to you, consider banks like Australia Post's Bank@Post partner banks, which allow basic banking at post offices across the country.

For more on how BSB numbers work and what each digit means, see our guide on BSB number format explained. If your BSB has changed due to a bank merger rather than a branch closure, see how bank mergers affect BSB numbers.