Closing a savings account does not directly hurt your credit score
Closing a savings account by itself will not lower your credit score. Credit bureaus—Equifax, Experian, and TransUnion—do not track savings accounts, money market accounts, or certificates of deposit. They track only credit activity: loans you owe, credit cards you use, and payment history. A savings account is not credit.
The confusion usually comes from mixing up savings accounts with credit cards. If you close a credit card, that can affect your score. If you close a savings account, it cannot. The bank may report the closure to you and to other banks through systems like ChexSystems, but that system is separate from credit reporting and does not feed into your credit score.
Key Takeaways
- Closing a savings account does not appear on your credit report and will not change your credit score.
- Credit bureaus track only credit products like loans and credit cards, not deposit accounts like savings.
- Closing a credit card can hurt your score by raising your credit utilization ratio or shortening your credit history, but closing a savings account has no such effect.
- If you close a savings account with a negative balance or unpaid fees, the bank may send the debt to a collection agency, which would then hurt your credit.
- ChexSystems records may affect your ability to open new bank accounts, but they do not affect your credit score.
When closing a savings account might create a credit problem
Closing the account itself is harmless. What happens before or after the closure can matter. If you close a savings account while it has a negative balance—meaning you owe the bank money—the bank will try to collect that debt. If you do not pay it, the bank may report it to a collection agency. A collection account will appear on your credit report and will lower your score.
The same applies to unpaid overdraft fees or maintenance fees. If you close the account and leave an outstanding balance or unpaid charges, the bank treats it as a debt. They will send you notices, and if you ignore them, the debt can be sold to a collection agency. That is when your credit score gets hit—not because you closed the account, but because you have an unpaid debt.
Before you close a savings account, check your balance and make sure there are no pending fees or charges. If there are, pay them first. If the account is overdrawn, bring it to zero or positive before closing it.
The difference between closing a savings account and closing a credit card
Closing a credit card can hurt your credit score for two reasons: credit utilization and account age. Credit utilization is the percentage of your total credit limit that you are using. If you have two credit cards with $5,000 limits each and you carry a $2,000 balance on one, your utilization is 20 percent. If you close the card with no balance, your total available credit drops from $10,000 to $5,000, and your utilization jumps to 40 percent—even though your actual balance has not changed. A higher utilization ratio lowers your score.
Account age also matters. Credit bureaus reward you for a long history of responsible credit use. Closing an old credit card removes that account from your history, which can lower your score slightly. A savings account has no effect on either of these factors because it is not part of your credit profile at all.
How ChexSystems records differ from credit reports
When you close a bank account, the bank may report it to ChexSystems, a checking account history system used by banks to screen new customers. ChexSystems tracks account closures, overdrafts, and fraud. If you close an account in good standing, it will show as closed but will not hurt you. If you close an account with unpaid fees or a negative balance, ChexSystems will record that, and other banks may refuse to open accounts for you.
ChexSystems is not the same as a credit bureau. A negative ChexSystems record will not appear on your credit report and will not affect your credit score. However, it can make it harder to open a new checking or savings account at most banks. If you have a ChexSystems issue, you can still open accounts at some credit unions or online banks that do not use ChexSystems, or you can wait for the record to age off (usually after five years).
What to do before closing a savings account
To avoid any problems, take these steps before you close:
- Check your balance and make sure it is positive or zero.
- Review your account for any pending fees, overdraft charges, or holds.
- Set up a transfer to move any remaining money to another account, or withdraw it in cash.
- Confirm the account is empty and all transactions have cleared.
- Contact the bank and request closure in writing or through their online portal so you have a record.
- Keep the confirmation email or letter for your records.
If the account has a negative balance, pay it immediately before closing. If you cannot pay it right away, contact the bank and ask about a payment plan. Paying the debt before closure keeps it off your credit report entirely.
If you already closed an account with a negative balance
If you closed a savings account that had unpaid fees or a negative balance, and you have not heard from the bank, check your credit report. You can get a free copy once per year from each bureau at annualcreditreport.com. Look for any collection accounts or negative items tied to that bank.
If you find a collection account on your report, contact the collection agency and ask about payment options. Paying the debt in full will not remove the collection account from your report immediately, but it will stop the agency from pursuing you further. The account will stay on your report for seven years from the date of first delinquency, but its impact on your score will fade over time, especially if you build positive credit history afterward.
If you do not see anything on your credit report yet, the bank may still be trying to collect. Keep an eye on your mail and email for notices. If you receive a collection notice, respond promptly.
Frequently Asked Questions
Will closing a savings account show up on my credit report?
No. Savings accounts do not appear on credit reports at all. Only credit products like credit cards, loans, and lines of credit show up. Closing a savings account will not create any entry on your credit report.
Can closing multiple savings accounts hurt my credit?
No. Closing as many savings accounts as you want will not affect your credit score because savings accounts are not tracked by credit bureaus. The only way closing bank accounts hurts your credit is if they have unpaid balances that go to collection.
What if I close a savings account and the bank sends me to collections?
If you owe the bank money when you close the account, they may send the debt to a collection agency. That collection account will appear on your credit report and will lower your score. You can dispute it if it is inaccurate, or you can contact the collection agency to negotiate a payment or settlement.
Does closing a savings account affect my ability to get a loan?
Closing a savings account itself will not affect loan decisions. Lenders look at your credit score and credit history, not your savings accounts. However, if closing the account leaves an unpaid debt that goes to collection, that collection account will hurt your credit and make it harder to get approved for loans.
How long does a closed savings account stay on ChexSystems?
A closed account in good standing may stay on ChexSystems for up to five years, but it will not hurt you. If the account had negative items like overdrafts or unpaid fees, those records typically stay for five years as well. After that time, they usually fall off and stop affecting your ability to open new accounts.