If you chose to pay the fees out of your Federal refund, it will be a third-party company (SBTPG) that first receives your funds from the IRS then tries to make the direct deposit to your old bank account. In that case, if the bank refused it, it would go back to that third-party company who would then issue you a check in the mail.
If you paid your fees upfront, then that paragraph won't apply to you.
Once years ago, when I closed a bank account the final paperwork warned that it might automatically be reopened if it received a direct deposit in "X" number of days, so you may wish to verify with your old bank that it will be refused.
