Close your Ally checking account by calling customer service or using online banking
You can close an Ally checking account in two ways: by phone with a representative, or through your online banking portal. Calling is faster and lets you ask questions about your balance, pending transactions, or what happens to direct deposits. The phone number is on your debit card or in your online account. Online closure takes longer because you have to wait for confirmation, but it works if you prefer not to call.
Before you close, make sure your account balance is zero or that you have arranged to move any remaining money out. Ally will not close an account with an outstanding balance. If you have pending transactions, direct deposits coming in, or automatic bill payments set up, those need to be stopped or redirected first.
Key Takeaways
- Call Ally customer service or log into your online account to start the closure process; phone closure is usually faster.
- Your account balance must be zero before Ally will close the account, so transfer or withdraw any remaining funds first.
- Stop or redirect any automatic payments, direct deposits, or recurring transfers before closing to avoid failed transactions.
- Ally will send you written confirmation of the closure, and your debit card will stop working immediately.
- If you have a linked savings account or money market account with Ally, you will need to close those separately.
Steps to close by phone
Call Ally customer service at the number on your debit card or statement. Have your account number and a form of ID ready. Tell the representative you want to close your checking account. They will confirm your identity, review your account balance, and ask why you are closing (this is optional to answer). If your balance is not zero, they will tell you how much you need to move out before closure can happen.
Once your balance is confirmed at zero, the representative will process the closure. They will give you a confirmation number and tell you when the account will be fully closed—usually within one to three business days. Your debit card will stop working immediately, even if the account takes a few days to fully close in the system. Ask the representative if there are any pending transactions or scheduled transfers that might fail after closure.
Steps to close online
Log into your Ally online banking account and go to Settings or Account Management (the exact name varies by when your account was created). Look for a "Close Account" or "Account Closure" option. You may see it under a "Manage Accounts" section. Click it and follow the prompts. Ally will ask you to confirm your identity and may ask why you are closing.
The system will show your current balance and warn you if there are pending transactions. If your balance is not zero, you will not be able to complete closure online—you will have to call instead. After you submit the closure request, Ally will send you an email confirmation with a reference number. The account will close within one to three business days, and your debit card will stop working right away.
What to do before closing
Transfer your remaining balance to another bank account or withdraw it in cash. You can do this through an external transfer (moving money to a different bank), an ATM withdrawal, or a teller withdrawal if you have access to an Ally branch. Ally has no physical branches, so ATM withdrawal or external transfer is your only option. Make sure the transfer clears before you close the account.
Stop any automatic bill payments or recurring transfers that are set up to come out of this checking account. Log into each biller's website or call them to change the payment method or cancel the payment. Do the same for any direct deposits—contact your employer or the organization sending the deposit and give them your new bank account number, or tell them to stop the deposit. Ally will not process these transactions after closure, and they will fail, which can trigger late fees or missed payments.
If you have a linked Ally savings account, money market account, or other products, decide what to do with those. Closing your checking account does not automatically close other accounts. You will need to close them separately if you want to leave Ally entirely.
What happens after closure
Your debit card stops working immediately, even if the account takes a few days to fully close. You will not be able to make purchases, withdraw cash, or access the account online. Any transactions that try to post after closure will be rejected. If a bill payment or direct deposit tries to go through, it will fail, and the sender will get a rejection notice.
Ally will send you written confirmation of the closure by mail within one to two weeks. Keep this confirmation in case you need proof that the account was closed for your records. If you ever need to dispute a transaction or have questions about the account after closure, you can still contact Ally with your confirmation number.
If you have a negative balance or owe Ally money
If your account is overdrawn or you owe Ally fees, you cannot close the account until the debt is paid. Contact Ally to find out the exact amount owed. You can pay it by transferring money into the account from another bank, or by calling to arrange a payment. Once the balance is zero or positive, you can proceed with closure.
If you ignore an overdrawn account, Ally may close it on their own and send the debt to a collection agency. This will damage your credit and make it harder to open accounts at other banks. Pay any outstanding balance before you close to avoid this.
Frequently Asked Questions
Can I reopen my Ally checking account after I close it?
Ally does not reopen closed accounts. If you want to bank with Ally again, you will have to open a new account. This usually takes a few minutes online, but Ally may review your banking history before approving the new account.
What if I close my account but a bill payment posts after closure?
The payment will be rejected, and the biller will receive a notice that the account is closed. Contact the biller to reschedule the payment or set up a new payment method. You may face a late fee if the payment was due, so contact them as soon as you know the payment failed.
Do I need to destroy my debit card after closing?
You do not have to, but it is a good idea to cut it up or shred it so it cannot be used or stolen. The card will not work after closure anyway, but destroying it removes the risk of someone finding it and trying to use it.
Will closing my Ally checking account hurt my credit?
No. Closing a checking account does not appear on your credit report and does not affect your credit score. Only credit accounts like credit cards, loans, and lines of credit show up on your credit report.
How long does it take to close an Ally checking account?
The closure process takes one to three business days after you request it. Your debit card stops working immediately, but the account may still show in your online banking for a few days while Ally processes the closure in their system.