diff --git a/packages/desktop-client/src/components/accounts/TransactionsTable.js b/packages/desktop-client/src/components/accounts/TransactionsTable.js
index 76fe8dde030485a4aef1729d3a858fc3c1a3cb81..3bf19144326b6bfa34fe156e58866cc9d79a7660 100644
--- a/packages/desktop-client/src/components/accounts/TransactionsTable.js
+++ b/packages/desktop-client/src/components/accounts/TransactionsTable.js
@@ -771,6 +771,7 @@ export const Transaction = memo(function Transaction(props) {
             inputStyle,
           }) => (
             <AccountAutocomplete
+              includeClosedAccounts={false}
               value={accountId}
               accounts={accounts}
               shouldSaveFromKey={shouldSaveFromKey}
diff --git a/packages/desktop-client/src/components/autocomplete/AccountAutocomplete.js b/packages/desktop-client/src/components/autocomplete/AccountAutocomplete.js
index 067718e58aa4ffd297e5bb64d1c0437f140416c9..d03ae01488405026db2b8e323b89a1f98d48dde2 100644
--- a/packages/desktop-client/src/components/autocomplete/AccountAutocomplete.js
+++ b/packages/desktop-client/src/components/autocomplete/AccountAutocomplete.js
@@ -25,9 +25,18 @@ export function AccountList({
       >
         {items.map((item, idx) => {
           const showGroup = lastItem
-            ? item.offbudget !== lastItem.offbudget
+            ? (item.offbudget !== lastItem.offbudget && !item.closed) ||
+              (item.closed !== lastItem.closed && !item.offbudget)
             : true;
-          const group = item.offbudget ? 'Off Budget' : 'For Budget';
+
+          const group = `${
+            item.closed
+              ? 'Closed Accounts'
+              : item.offbudget
+              ? 'Off Budget'
+              : 'For Budget'
+          }`;
+
           lastItem = item;
 
           return [
@@ -74,16 +83,26 @@ export default function AccountAutocomplete({
 }) {
   let accounts = useCachedAccounts() || [];
 
+  //remove closed accounts if needed
+  //then sort by closed, then offbudget
+  accounts = accounts
+    .filter(item => {
+      return includeClosedAccounts ? item : !item.closed;
+    })
+    .sort((a, b) => {
+      if (a.closed === b.closed) {
+        return a.offbudget === b.offbudget ? 0 : a.offbudget ? 1 : -1;
+      } else {
+        return a.closed ? 1 : -1;
+      }
+    });
+
   return (
     <Autocomplete
       strict={true}
       highlightFirst={true}
       embedded={embedded}
-      suggestions={
-        includeClosedAccounts
-          ? accounts
-          : accounts.filter(a => a.closed === false)
-      }
+      suggestions={accounts}
       renderItems={(items, getItemProps, highlightedIndex) => (
         <AccountList
           items={items}
diff --git a/upcoming-release-notes/1034.md b/upcoming-release-notes/1034.md
new file mode 100644
index 0000000000000000000000000000000000000000..f08d9910e6c412d7cd2c925fa5bb70c727c10409
--- /dev/null
+++ b/upcoming-release-notes/1034.md
@@ -0,0 +1,6 @@
+---
+category: Enhancements
+authors: [Miodec]
+---
+
+Updated account order inside the account autocomplete popup to: On Budget, Off Budget, Closed Accounts. Removed closed accounts from suggestions when creating a new transaction.