Most banks charge no fee to close an account, but some do—and the fee depends on the bank and account type
The majority of banks and credit unions do not charge a fee to close a checking or savings account. However, some banks impose a closure fee ranging from $25 to $100, and a few charge more. The fee is most common at banks that also charge monthly maintenance fees—if the bank makes money by charging you regularly, they may also charge you to leave.
Before you close an account, call the bank or check your account agreement to find out whether a fee applies. If you find a fee listed and you have been a customer for a while, it is sometimes worth asking whether the bank will waive it. Banks occasionally do, especially if you have direct deposit or a linked account.
Key Takeaways
- Most major banks (Chase, Bank of America, Wells Fargo, Citibank) charge no fee to close a checking or savings account.
- Some regional banks and credit unions charge $25 to $100 to close an account, so check your account agreement or call before you close.
- Fees are more likely if your account has a monthly maintenance fee or if you close the account within a short time of opening it.
- If you owe the bank money (overdraft, unpaid fees), the bank may deduct the closure fee from your remaining balance before returning it to you.
Which banks charge closure fees and which don't
The largest national banks—Chase, Bank of America, Wells Fargo, and Citibank—do not charge a fee to close a checking or savings account. Credit unions typically do not charge a closure fee either, though you should confirm with your specific credit union.
Smaller regional banks and online-only banks vary. Some online banks (like Ally and Charles Schwab) charge no fee. Others, particularly banks that charge monthly maintenance fees, may charge $25 to $100 to close. If your bank charges you $10 or $15 per month to keep the account open, assume it will also charge to close it.
The best way to know is to search your account agreement for the word "closure" or "close," or call the customer service number on the back of your card and ask directly. The fee, if one exists, will be listed in the fee schedule.
When banks charge the highest fees
Banks are most likely to charge a closure fee if you close the account within a short time of opening it—sometimes within 90 days to six months. This is a penalty for what the bank sees as account churning, and it can be $25 to $50. The bank's reasoning is that it costs them money to open and close accounts, and they want to discourage customers from treating accounts as temporary.
You may also face a fee if you close the account while it has a negative balance (you owe the bank money). In that case, the bank will deduct the closure fee from whatever money you have left, or it may add the fee to what you owe.
Some banks charge higher fees for closing certain account types. A money market account or certificate of deposit (CD) may have a higher closure fee than a basic savings account, particularly if you are closing a CD before the term ends. Always check the specific terms for the account type you hold.
How the fee is deducted from your account
When you close an account, the bank will deduct any closure fee from your remaining balance before sending you the money. If your balance is $500 and the closure fee is $50, you will receive $450.
If your account has a negative balance (you owe the bank money), the closure fee is added to what you owe. If you owe $100 and the fee is $50, you now owe $150. The bank may send you a bill or attempt to collect the debt through other means.
The bank will send you a final statement showing the closure fee as a deduction. Keep this statement for your records, especially if you are closing the account because of a dispute or if you think the fee was applied in error.
How to avoid or reduce a closure fee
The simplest way to avoid a closure fee is to close the account at a bank that does not charge one. If you are already at a bank with a closure fee and you want to leave, ask the bank to waive it. Banks sometimes do, particularly if you have been a customer for years or if you have multiple accounts with them.
If the bank refuses to waive the fee, you can choose to absorb it or to keep the account open. If the account has a monthly maintenance fee and you are not using it, the closure fee may be worth paying to stop the recurring charges. Do the math: if the account costs $12 per month and the closure fee is $50, you break even after about four months of not using the account.
To avoid a closure fee for early account closure, wait at least 90 days to six months after opening the account before you close it. Most banks' early closure penalties expire after this period.
What happens to your money when you close
When you close an account, the bank will return your remaining balance to you. You can request that the money be sent to another bank account via ACH transfer (usually free and takes one to three business days), mailed as a check (takes five to ten business days), or transferred in person at a branch if you have one nearby.
If you have pending transactions or automatic payments set to that account, they may still process after you close it. This can result in overdraft fees. Before you close, cancel any automatic payments and wait for any pending transactions to clear. Check your account for at least a week after closing to make sure nothing unexpected posts.
If the bank owes you money (for example, interest earned) and you close the account, the bank will include that in your final balance. If you owe the bank money, the bank will deduct it from your balance or send you a bill.
Frequently Asked Questions
Can a bank charge me a fee if I close my account the same day I open it?
Yes. Most banks charge an early closure fee if you close within 90 days to six months of opening. The fee is usually $25 to $50. Some banks may charge even if you close on the same day, though this is less common. Check the account agreement before you open to see the early closure policy.
What if I have a negative balance when I close my account?
The bank will deduct the closure fee from what you owe. If your account is overdrawn by $100 and the closure fee is $50, you now owe $150. The bank will send you a bill or may attempt to collect the debt. Pay it promptly to avoid damage to your credit or further collection efforts.
Do credit unions charge fees to close accounts?
Most credit unions do not charge a closure fee, but some do. Call your credit union or check your account agreement. If there is a fee, it is usually smaller than at banks—$10 to $25—because credit unions are member-owned and often have lower fees overall.
Will closing my account hurt my credit score?
Closing a bank account does not directly affect your credit score because banks do not report account closures to credit bureaus. However, if you close an account with a negative balance and do not pay it, the bank may send it to collections, which will hurt your credit. Pay any balance owed before or when you close.
Can I dispute a closure fee after the account is closed?
Yes. If you believe the fee was applied in error, contact the bank's customer service or file a complaint with the Consumer Financial Protection Bureau (CFPB). Keep your final statement as proof. The bank may reverse the fee if you can show it was charged incorrectly or if you were promised it would be waived.