I do a ladder stitch to close it up and then top stitch. Another way of doing it if you are doing an applique is to apply your applique at the end. With this you stitch all around the outside edge of the potholder, make a slit in the fabric where you are going to apply the applique and turn the potholder through that slit. Once it is turned and pressed then apply your applique which covers the slit. I usually use a blanket stitch around the applique which I have fused on. This also works as quilting to hold all the layers together.
Another way I finish potholders is to make the backing larger than the front and bring it around to form a binding. You can either hand stitch it or machine stitch it which is what I do. I hand stitch the corners together. Here is a short video on how to do that https://www.youtube.com/watch?v=npTvVGouO6Y but there are other links as well.

have you thought of using Elmers School Glue to close the opening and then stitch the finishing 1/4" around the edge.

Please show when finished if you can.

Here's a potholder tutorial I made several years ago. No hole-closing or binding needed. They fly out the door at craft fairs. :)

http://www.quiltingboard.com/tutoria...rs-t60544.html

Now isn't that just the best idea! Thanks for re-sharing.

Well..I had no idea how to help with this question. I will admit I have just learned a few tricks! Thank you!

I used a small strip of steam-a-seam 2 (1/4 inch) and tucked it into my microwave bowl cozy seam allowance in the opening to close them then topped stitched 1/8 inch from the edge.

I used a 1/4 inch strip of Steam-a-seam 2 placed in the seam allowance opening to close my bowl cozies. I then top stitched 1/8 inch from the edge.

Moonrise---- thanks! Cool tute.....like that technique!

Here is a pic of my 4 potholders. They represent in color and print of the 4 seasons. (Not the singing group) lol...
The one in the very front is spring, then summer, fall, and winter. The back one (winter) looks like it's not straight, but it is. I think it got pushed up a bit when I was trying to fix them to take the pic. It's smaller print of snowflakes, and little yellow stars on blue back ground. The light blue color in the first one is close to the color of her kitchen. Her kitchen is maybe a tad darker. (A country blue)
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I just now went to read the tutorial by Moonrise. That tutorial is really neat. I will be trying some out that way through out this next year.
I did a lot of quilting on these.