The branch at 38 High Street will close its doors on January 28.
Customers’ accounts will be transitioned to the Virgin Money Aberdeen - Principle store.
The bank say that a decline in footfall is the reason behind the decision with transactions falling by 34 per cent between October 2018 and September 2020, a decline which has continued this year.
In addition, 72 per cent of customers visited the Store three times or less the last 12 months, with nearly half of these customers also using alternative channels and 48 per cent being digitally active.
Scottish Conservative MSP for Aberdeenshire West, Alexander Burnett said: "It is extremely concerning to see another High Street bank close a rural Aberdeenshire branch.
"Banchory residents who want the option of banking face-to-face are going to have to travel into Aberdeen for that service. Such branches also perform a vital function in our communities.
"And some small businesses will be hugely inconvenienced by travelling miles to make deposits or consult their account manager.
"Much is made of the supposed leap to fully digital banking, but that depends on stable internet access which is notoriously patchy in the North East."
A spokesman for Virgin Money said: “These were tough decisions and I assure you they were not taken lightly.
"We are contacting all customers to advise them of the closures, to confirm their new nearest Virgin Money location and to offer alternative ways to bank with us. This includes the location of the nearest Post Office and ATM.
“While we know this news will be disappointing to some customers, our focus now is on ensuring that all customers that use these stores, particularly the vulnerable and potentially vulnerable, are supported through this transition.
"While customer accounts will be transitioned to the nearest Virgin Money Store, they are welcome to any store in our network.”
Banking is available at the town’s post office, while the nearest ATM is at the Co-op store.