Most banks do not charge a fee to close your account, but some do—and the fee varies by bank and account type
The majority of banks and credit unions let you close a checking or savings account for free. However, a minority charge a closure fee ranging from $25 to $100, and a few charge more. Some banks only charge if you close the account within a certain window after opening it (often 90 days to a year). Others charge only for specific account types, such as money market accounts or certificates of deposit (CDs). A few charge based on your account balance or recent activity.
The fee is not automatic or universal. Before you close an account, contact your bank directly or check your account agreement to find out whether a fee applies to you. If a fee does apply and you want to avoid it, you may be able to transfer your money and simply stop using the account instead—though this leaves it open and potentially subject to inactivity fees.
Key Takeaways
- Most banks charge nothing to close a checking or savings account, but some charge $25 to $100 depending on the account type and how long you have held it.
- Banks that charge closure fees often waive them if you close the account after a certain period (usually one year) or maintain a minimum balance.
- Your account agreement or the bank's website will state whether a closure fee applies; calling customer service is the fastest way to confirm.
- If a closure fee applies and you want to avoid it, you can transfer your money out and leave the account dormant instead, though you may face inactivity fees over time.
- Some banks charge a fee to close a CD early, separate from any account closure fee, so confirm both before you proceed.
Which banks charge closure fees and how much
Large national banks like Bank of America, Chase, and Wells Fargo generally do not charge a fee to close a checking or savings account. However, some regional banks and online banks do. For example, certain accounts at Ally Bank, Charles Schwab, and some credit unions may carry a closure fee if the account is closed within a set timeframe.
The fee structure varies. Some banks charge a flat amount—say, $25 or $50—regardless of your balance. Others charge a percentage of your remaining balance or a fee that decreases the longer you have held the account. A few charge only if you close within 90 days to one year of opening. The best way to know your bank's policy is to look at the account agreement you signed when you opened it, or call customer service and ask directly.
Early closure windows and how they work
Many banks that charge closure fees do so only if you close the account within a specific period after opening it. This window is typically 90 days, six months, or one year. Once that period passes, you can close the account without a fee. This policy is designed to discourage people from opening accounts for a sign-up bonus and closing them immediately.
If your bank has an early closure window, the fee applies only if you close during that window. After the window closes, the fee no longer applies. Check your account agreement or ask your bank what the window is for your specific account. If you are within the window and want to avoid the fee, you can wait until the window closes before closing the account—though this only makes sense if you do not have a reason to close it sooner.
Closure fees for CDs and money market accounts
Certificates of deposit (CDs) and money market accounts sometimes carry separate fees beyond a general account closure fee. A CD has a fixed term—three months, one year, five years, and so on. If you withdraw your money or close the CD before the term ends, the bank charges an early withdrawal penalty. This penalty is separate from any fee to close the account itself.
The early withdrawal penalty on a CD is typically a certain number of months' worth of interest. For example, a one-year CD might charge three months of interest if you withdraw early. A five-year CD might charge six months of interest. Money market accounts may also charge a penalty for early withdrawal, depending on the bank. Before you open a CD or money market account, ask the bank what the early withdrawal penalty is, so you know the cost if you need the money sooner than expected.
How to learn about your bank charges a closure fee
The fastest way to find out is to call your bank's customer service line or visit a branch in person. Tell them you are considering closing your account and ask whether a fee applies. Have your account number ready. The representative can tell you immediately whether a fee applies to your specific account and, if so, how much it is and whether any exceptions apply.
You can also check your account agreement, which you received when you opened the account. Look for sections titled "Fees," "Account Closure," or "Early Closure." If you no longer have the agreement, most banks post it on their website under "Account Terms" or "Disclosures." Some banks also list their fee schedule on their website under "Pricing" or "Fees." If you cannot find the information online, calling is your best option.
What happens if you close your account without asking first
If you close your account and a closure fee applies, the bank will deduct the fee from your remaining balance before returning the money to you. If your balance is too low to cover the fee, the bank may charge you an overdraft fee or send your account into negative territory. Some banks will not process the closure until you bring your balance high enough to cover the fee.
This is why it is important to ask about the fee before you close the account. If you know a fee applies and you want to avoid it, you have options: wait until the early closure window expires, transfer your money to another bank and leave the account open (though watch for inactivity fees), or simply accept the fee as the cost of closing.
Alternatives to closing: dormant accounts and inactivity fees
If a closure fee applies and you want to avoid it, you do not have to close the account. You can transfer your money out and simply stop using it. The account becomes dormant. However, dormant accounts are subject to inactivity fees at some banks—typically $5 to $10 per month if you do not make a deposit or withdrawal for a set period, often 12 months.
Over time, inactivity fees can add up and exceed a one-time closure fee. For example, a $50 closure fee costs less than a $10 monthly inactivity fee over five months. If you plan to leave an account dormant for more than a few months, it may be cheaper to pay the closure fee upfront than to pay inactivity fees indefinitely. Ask your bank whether your account is subject to inactivity fees and, if so, how much they are and how long you can go without activity before they start.
Frequently Asked Questions
Can a bank charge me a closure fee if I did not know about it?
Yes, if the fee was disclosed in your account agreement when you opened the account. Banks are required to disclose fees in writing, but they are not required to remind you before charging. This is why checking your agreement or calling before you close is important. If you believe a fee was charged in error or was not properly disclosed, contact your bank's customer service or file a complaint with your state's banking regulator.
What if I close my account and then want to reopen it?
You can usually reopen an account with the same bank, but the bank may treat it as a new account. If the new account is subject to an early closure fee, that fee will apply to the new account as well. Some banks may also review your account history before allowing you to reopen, especially if you had overdrafts or disputes. Ask the bank whether reopening will trigger a new early closure window.
Do credit unions charge closure fees?
Most credit unions do not charge a fee to close an account, but some do. Credit unions vary widely in their policies. Call your credit union and ask directly, or check your account agreement. If a fee applies, the same rules about early closure windows and exceptions typically apply.
Can I dispute a closure fee if I think it is unfair?
You can contact your bank and ask them to waive the fee, especially if you have been a long-standing customer or if you believe the fee was not clearly disclosed. Banks sometimes waive fees as a courtesy. If the bank refuses and you believe the fee violates consumer protection laws or was not properly disclosed, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator.
Does closing a bank account affect my credit score?
Closing a checking or savings account does not affect your credit score because these accounts do not appear on your credit report. Only credit accounts—credit cards, loans, mortgages—affect your score. However, if you have an overdraft or unpaid fees on the account, the bank may report it to a checking account reporting system like ChexSystems, which can affect your ability to open accounts at other banks.