Most banks charge no penalty for closing an account, but some do

The majority of banks and credit unions will let you close a checking account without charging you a fee. However, a growing number of institutions impose an early closure fee if you close the account within a set timeframe — usually 90 days to six months after opening it. The fee typically ranges from $25 to $100, though some banks charge more. A few banks also charge a fee if you close an account that still has a negative balance.

Whether you face a penalty depends entirely on your bank's terms and the timing of your closure. Before you close, check your account agreement or call your bank to ask directly. The fee, if one exists, will be deducted from your remaining balance before the account closes.

Key Takeaways

  • Most banks do not charge a fee to close a checking account at any time, but some impose an early closure fee if you close within 90 days to six months of opening.
  • Early closure fees typically range from $25 to $100, though the exact amount and timeframe vary by bank.
  • Your bank's account agreement or customer service line will tell you whether a fee applies to your specific account.
  • If your account has a negative balance, some banks will charge an overdraft fee in addition to any closure fee.
  • Closing an account does not affect your credit score or banking history.

Which banks charge early closure fees

Banks that commonly charge early closure fees include Chase, Bank of America, Wells Fargo, and Citibank, though not all of their account types carry the fee. Chase, for example, charges $25 if you close a checking account within 90 days of opening it. Bank of America charges $25 if you close within 90 days. Wells Fargo charges $25 if you close within 90 days. Citibank's policy varies by account type and region.

Credit unions are less likely to charge early closure fees than large national banks, but some do. Local and regional banks vary widely — some charge nothing, others charge $25 to $50. Online banks like Ally, Charles Schwab, and Discover typically do not charge closure fees at any point.

The only way to know for certain is to check your specific account's terms. Look for a document titled "Account Agreement," "Deposit Agreement," or "Terms and Conditions" that came with your account paperwork, or call your bank's customer service line and ask directly: "Is there a fee to close this account, and if so, when does it apply?"

How the fee is charged and when it comes out

If your bank charges an early closure fee, it is deducted from your account balance before the account closes. If you have $500 in the account and the fee is $25, you will receive $475 when the account closes. The bank does not charge the fee separately or bill you after closure.

The fee is typically charged on the day you request closure or within a few business days after. Some banks process the fee immediately; others wait until the account is fully closed. If your account has a negative balance when you close, the bank will deduct both the overdraft amount and any closure fee from money you owe them, or they may send the debt to a collections agency.

Negative balances and additional fees at closure

If your checking account is overdrawn when you close it, you still owe the bank the full amount of the overdraft. The bank will not forgive the debt simply because you are closing the account. They will attempt to collect it from you, either by charging your linked savings account, requesting a check from you, or reporting the debt to a collections agency.

In addition to the overdraft amount, some banks charge an overdraft fee (typically $25 to $35) for each transaction that overdrew the account. These fees do not disappear when you close the account. Bring your account balance to zero or positive before you close if you want to avoid these charges.

What does not happen when you close an account

Closing a checking account does not damage your credit score. Credit bureaus do not track checking account closures, and banks do not report account closures to credit reporting agencies. Your credit score is based on credit accounts like credit cards, loans, and lines of credit — not deposit accounts.

Closing an account also does not create a record that future banks can see. When you open a new account elsewhere, the new bank will not know that you closed an account at another institution. However, if you close an account with an unpaid overdraft or negative balance, that debt can be reported to ChexSystems (a banking history database), and future banks may see it when you try to open a new account.

How to avoid closure fees

If you want to avoid an early closure fee, wait until the timeframe has passed. If your bank charges a fee for closures within 90 days, wait 91 days before closing. If the timeframe is six months, wait until day 181. This is the simplest way to avoid the charge entirely.

If you cannot wait, contact your bank and ask whether the fee can be waived. Some banks will waive the fee if you explain your situation — a job relocation, a move to an area where the bank has no branches, or dissatisfaction with the service. Banks are not required to waive fees, but some customer service representatives have the authority to do so. It never hurts to ask.

If you are opening a new account to replace the one you are closing, consider opening the new account first, then closing the old one after the waiting period has passed. This way you have a functioning account while you wait and avoid the fee.

Frequently Asked Questions

Can a bank charge me a fee to close an account if I have no money left in it?

Yes, if the fee applies to your account type and timeframe. The bank will charge the fee even if your balance is zero. If you do not have enough money to cover the fee, your account will close with a negative balance, and you will owe the bank that amount. They may send it to collections.

What if I close my account and then the bank tries to charge me a fee after it is closed?

This should not happen if you have a zero or positive balance at closure. If the bank charges a fee after the account is closed, contact them immediately and ask them to reverse it. Document the closure date and the fee charge. If they refuse, file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau.

Do I have to pay a closure fee if I am closing because the bank made an error?

No. If the bank made an error that caused you to close the account — such as repeatedly charging incorrect fees or failing to credit a deposit — ask the bank to waive the closure fee as part of resolving the error. If they refuse, mention the error in a complaint to your state banking regulator.

Will closing my account affect my ability to open a new one elsewhere?

Closing an account itself will not affect your ability to open a new account. However, if you close with an unpaid overdraft or negative balance, that debt may be reported to ChexSystems, and other banks may deny your application based on that history.