Opening a savings account does not hurt your credit score
A savings account by itself has no impact on your credit score. Banks do not report savings account activity to the three credit bureaus (Equifax, Experian, and TransUnion), so opening one, closing one, or how much money sits in it never appears on your credit report. Your credit score measures only your history of borrowing and repaying money — not your ability to save.
The confusion often comes from mixing up two different things: a savings account (which is just storage for your money) and a credit product (which is a loan or line of credit). Opening a savings account is the first one. Taking out a credit card or loan is the second one, and that is what moves your score.
Key Takeaways
- Savings accounts do not report to credit bureaus and have no direct effect on your credit score, whether you open one or close one.
- A hard inquiry — the bank checking your credit when you open the account — may cause a small temporary dip, usually 5 to 10 points, but recovers within a few months.
- If the bank runs a soft inquiry instead, your score is not affected at all.
- Overdrafting a savings account or falling behind on fees can damage your score only if the bank sends the debt to a collection agency.
- Linking a savings account to a credit card or loan does not change how either one affects your score.
The difference between a hard and soft inquiry
When you open a savings account, the bank may check your credit history. This check comes in two forms: a hard inquiry or a soft inquiry. Only a hard inquiry affects your score, and only slightly.
A hard inquiry happens when you authorize the bank to pull your full credit report — usually because you are opening an account that requires a credit check. This shows up on your credit report and typically lowers your score by 5 to 10 points. The effect is temporary. Most scoring models stop counting the inquiry after three months and remove it entirely after two years.
A soft inquiry is a background check that does not require your permission and does not show on your report. Many banks run soft inquiries to screen for fraud or to check your banking history with ChexSystems (a separate reporting system for bank accounts, not credit). A soft inquiry has zero impact on your score.
You can ask the bank which type of inquiry they will run before you open the account. If they say hard inquiry and you want to avoid even a small dip, you can open the account at a different bank that uses soft inquiries instead.
When a savings account can indirectly hurt your score
A savings account itself does not report to credit bureaus, but mismanaging it can create a chain of events that does damage your score. This happens only in specific situations.
If you overdraft your savings account repeatedly and the bank closes it, they may send the unpaid overdraft fees to a collection agency. A collection account will appear on your credit report and lower your score significantly — sometimes by 100 points or more. However, this is rare. Most banks simply charge you a fee per overdraft (usually $25 to $35) and do not send small amounts to collections.
If you owe the bank money for unpaid fees and they refer the debt to a third-party collector, that collector may report it to the credit bureaus. Again, this is uncommon for savings accounts because the amounts are usually small, but it is possible.
Savings accounts linked to credit products
Some people open a savings account as part of a larger financial product — for example, a bank may require you to open a savings account when you take out a personal loan or secured credit card. In these cases, the savings account itself still does not affect your score. The loan or credit card does.
A secured credit card, for instance, requires you to deposit money into a savings account as collateral. Opening the savings account has no effect on your score. Opening the credit card does, because a credit card is a credit product. The card issuer will report your payment history to the credit bureaus; the savings account will not.
Similarly, if a bank requires a minimum savings balance to waive fees on a checking account, the savings account balance does not count toward your credit score. Only credit products do.
How to minimize any impact when opening a savings account
If you want to open a savings account and are concerned about even a temporary score dip, you have a few options. First, ask the bank whether they run a hard or soft inquiry. If they use soft inquiries, there is no impact at all.
If they use hard inquiries, the dip is small and temporary. A 5 to 10 point drop recovers within a few months, especially if you have other positive credit activity happening at the same time — like on-time payments on a credit card or loan. Do not let the possibility of a small temporary dip stop you from opening an account you need.
If you are in the middle of applying for a mortgage, car loan, or other major credit product, you may want to wait a few weeks before opening a new savings account. Lenders look at your credit report during their underwriting process, and multiple hard inquiries in a short time can make you look riskier to them. Once your loan closes, opening a savings account has no strategic downside.
The difference between savings accounts and credit-building products
Savings accounts are not designed to build credit. They are designed to hold money safely and earn a small amount of interest. If your goal is to build or repair your credit score, a savings account alone will not do it.
Credit-building products that do affect your score include credit cards, personal loans, auto loans, mortgages, and secured credit cards. These products report your payment history to the credit bureaus. Making on-time payments raises your score; missed payments lower it.
A common strategy is to open both a savings account and a credit-building product at the same time. The savings account gives you a financial cushion so you can make on-time payments on the credit product. The credit product builds your score. The two work together, but only the credit product actually moves your score.
What happens to your score if you close a savings account
Closing a savings account has no effect on your credit score, just as opening one does not. The account does not appear on your credit report, so closing it changes nothing.
You should close a savings account if it no longer serves your needs — for example, if the interest rate is too low, the fees are too high, or you have found a better option elsewhere. Do not keep an account open just because you think it might help your score. It will not.
Before you close, make sure the account balance is zero and there are no pending transactions. Some banks charge a fee for closing an account with a balance, and you want to avoid any surprise charges that could trigger a collection referral.
Frequently Asked Questions
Will opening a savings account lower my credit score?
A savings account itself does not lower your score. The bank may run a hard inquiry, which causes a small temporary dip of 5 to 10 points that recovers within a few months. Ask the bank whether they use a hard or soft inquiry before you open the account. A soft inquiry has no impact on your score at all.
Does the amount of money in my savings account affect my credit score?
No. Credit bureaus do not see your savings account balance. Your credit score is based only on your borrowing and repayment history — things like credit cards, loans, and payment timeliness. Having $100 or $100,000 in savings makes no difference to your score.
Can I build credit by putting money in a savings account?
No. Savings accounts do not report to credit bureaus, so they cannot build your credit score no matter how much you save. To build credit, you need a credit product like a credit card or loan that reports your payment history to the bureaus.
What if I overdraft my savings account — will that hurt my credit?
An overdraft fee alone does not hurt your credit. However, if you ignore the overdraft and the bank sends the unpaid amount to a collection agency, that collection account will appear on your credit report and lower your score. This is rare for small overdraft amounts, but it is possible.
Should I wait to open a savings account if I am applying for a mortgage?
If the bank will run a hard inquiry, you may want to wait until after your mortgage closes. Multiple hard inquiries in a short time can concern lenders. Once your mortgage is approved, opening a savings account has no strategic downside.