Closing a savings account does not hurt your credit score
Closing a savings account has no direct effect on your credit score. Credit bureaus do not track savings accounts, money market accounts, or any deposit accounts you hold at banks or credit unions. Your credit score measures only your history of borrowing and repaying money — not how much money you have or where you keep it.
The confusion often comes from mixing up savings accounts with credit accounts. A credit account is something you borrow from (a credit card, personal loan, mortgage, or line of credit). A savings account is something you deposit money into. Banks report credit accounts to the three major credit bureaus — Equifax, Experian, and TransUnion. They do not report savings accounts to those bureaus at all.
That said, closing a savings account can have indirect financial consequences that matter to your credit later. Understanding the difference between the account itself and what happens after you close it will help you avoid those traps.
Key Takeaways
- Closing a savings account does not appear on your credit report and does not change your credit score.
- Banks do not report savings account activity to credit bureaus — only credit accounts like loans and credit cards are reported.
- Closing a savings account can indirectly hurt your finances if you overdraft another account or miss a bill payment because you no longer have emergency funds.
- If your savings account is linked to a checking account with overdraft protection, closing savings first can leave you vulnerable to overdraft fees.
- The timing of closing a savings account matters only if you have automatic bill payments or transfers set up that will fail after closure.
Why banks do not report savings accounts to credit bureaus
Credit bureaus collect information only about credit — money you borrow and how reliably you pay it back. A savings account is your own money sitting in a bank vault. From the credit bureau's perspective, it tells them nothing about your ability or willingness to repay a debt.
Banks do report credit products: credit cards, auto loans, mortgages, personal loans, and lines of credit. They report the account balance, your payment history, whether you pay on time, and whether you have missed payments. That information builds your credit score. A savings account, no matter how large or how long you have held it, never appears on that report.
This is true even if you close the account. Closing does not trigger a report to the credit bureaus because the account was never on your credit report to begin with. There is nothing to remove or update.
When closing a savings account can indirectly damage your finances
Although closing a savings account does not hurt your credit score directly, it can create situations that do hurt your score later. The most common trap is running out of emergency money and then missing a credit payment because you have no cushion.
If you close your savings account and then face an unexpected expense — a car repair, a medical bill, a job loss — you may have to use a credit card or skip a bill payment. Missing even one credit card payment or loan payment will damage your credit score. The damage comes from the missed payment, not from closing the savings account, but the two events are connected.
Another indirect risk: if your savings account is linked to your checking account with overdraft protection, closing the savings account first removes that backup. If you then overdraft your checking account, you will face overdraft fees and possibly a negative mark on your banking record (reported to ChexSystems, a different reporting system than credit bureaus). This can make it harder to open a new bank account later.
Automatic payments and transfers that fail after closure
Before you close a savings account, check whether you have set up any automatic transfers or bill payments that draw from it. If you close the account without redirecting those payments, they will fail.
A failed automatic payment can have two consequences. First, if the payment was for a credit card bill, loan payment, or other debt, the missed payment will be reported to credit bureaus and will hurt your score. Second, the bank or creditor may charge you a returned-payment fee.
To avoid this, log into your online banking at least one week before you plan to close the account. Search for any recurring transfers or bill payments tied to that savings account. Either cancel them or change them to draw from a different account. Then wait a few days to confirm the next scheduled payment goes through correctly before you close the account.
The difference between closing an account and having it closed for you
There is a meaningful difference between you closing a savings account and the bank closing it for you. When you close an account, nothing is reported to credit bureaus. When a bank closes an account for you — usually because of inactivity, repeated overdrafts, or violation of account terms — the bank may report it to ChexSystems, a banking history database. This can make it harder to open accounts at other banks, but it still does not affect your credit score.
If a bank closes a credit account (like a credit card or line of credit) for you, that is different. A bank-initiated closure of a credit account can appear on your credit report and may lower your score, especially if the account had a high credit limit. But this applies only to credit accounts, not savings accounts.
What to do before closing a savings account
Before you close a savings account, take these steps to protect yourself:
- Review your account for any automatic transfers or bill payments. Redirect them to another account or cancel them.
- Check your bank's website for the closure process. Some banks require you to visit a branch in person; others allow online closure.
- Confirm the account balance and arrange to withdraw or transfer the remaining funds. Ask the bank how long it takes for the account to fully close after you request it.
- Keep a record of the closure date and confirmation number. If the bank later claims the account is still open, you will have proof.
- If you are closing the account because of poor service or high fees, consider whether you want to keep any other accounts at that bank. Closing all accounts may affect your banking history.
Frequently Asked Questions
Will closing a savings account lower my credit score?
No. Savings accounts are not reported to credit bureaus, so closing one has no direct effect on your credit score. Your score is based only on credit accounts like loans and credit cards, not on deposit accounts.
Can a bank report a closed savings account to credit bureaus?
No. Banks do not report savings accounts to credit bureaus under any circumstances. They may report the closure to ChexSystems, a banking database, but that is separate from your credit report and does not affect your credit score.
What happens if I have automatic bill payments set up on the savings account I want to close?
The payments will fail after the account closes, which can result in late fees and missed-payment reports if the bills are for credit accounts. Change those payments to a different account at least one week before you close the savings account, then confirm the next payment goes through successfully.
Does closing a savings account affect my ability to get a loan?
Not directly. Lenders look at your credit score and credit history, which savings accounts do not affect. However, if closing a savings account leaves you with no emergency funds and you then miss a credit payment, that missed payment will hurt your ability to get a loan.
If the bank closes my savings account, will it hurt my credit?
The bank closing a savings account will not hurt your credit score. It may be reported to ChexSystems, which can make it harder to open accounts elsewhere, but credit bureaus will not see it. If the bank closes a credit account instead, that is a different situation and may affect your score.