Most banks do not charge a fee to close a savings account
You can close a savings account at most banks without paying anything. The bank will not bill you for the closure itself. However, some banks do charge a penalty if you close the account within a certain time frame — usually within the first 30 to 90 days after opening it. A few banks also charge a monthly maintenance fee right up until the day you close, so if you close mid-month, you may owe that fee for the partial month.
The real cost of closing a savings account is usually not a fee but a lost interest rate. If you move money out before a promotional rate expires, you lose the higher interest you would have earned. Some accounts also require a minimum balance to avoid a monthly fee, so if your balance drops below that before you close, you pay the fee for each month you were below it.
Key Takeaways
- Most banks charge nothing to close a savings account, but some charge an early closure penalty if you close within 30 to 90 days of opening.
- Monthly maintenance fees still apply through the day you close, so closing mid-month may mean paying a partial-month fee.
- High-yield savings accounts often have no early closure penalty, while traditional savings accounts at large banks are more likely to charge one.
- Before you close, check your account agreement or call the bank to ask whether a closure fee applies and whether any pending fees will be charged.
Early closure penalties and when banks charge them
An early closure penalty is a fee some banks charge if you close an account within a set period after opening it. This period is usually 30, 60, or 90 days. The penalty amount varies — it might be $25, $50, or more. Banks use this fee to discourage customers from opening accounts just to collect a sign-up bonus and then leaving.
Not all banks charge an early closure penalty. Online banks and credit unions are less likely to charge one than large national banks. If you are opening a new account and the bank is offering a bonus, read the terms carefully — the bonus offer will usually state whether a penalty applies if you close early. If the terms do not mention a penalty, you can assume there is not one.
The penalty applies only if you close within the stated window. Once that period ends — say, 90 days after opening — you can close the account with no penalty. The bank will not charge you retroactively if you close on day 91.
Monthly fees that apply until your account closes
Most savings accounts charge a monthly maintenance fee if your balance falls below a certain amount, usually $100 to $500 depending on the bank. This fee continues to apply every month until you close the account, even if you have already decided to leave. If you close on the 15th of the month, you may still owe the full monthly fee for that month, or the bank may prorate it.
Before you close, check your account statement or log in online to see whether a fee is pending. If one is, you can ask the bank whether it will charge the fee for the partial month or waive it. Some banks will waive a fee if you ask, especially if you have been a customer for a long time. Others will not. The only way to know is to ask before you close.
How to close without surprises
Call your bank or visit a branch and ask three specific questions before you close: (1) Will I be charged a fee for closing this account? (2) Will I be charged a monthly maintenance fee through the day I close? (3) Do I need to withdraw all the money first, or can the bank transfer it?
Write down the answers and the name of the person you spoke to. If a fee is charged that you were not told about, you have a record of what you were promised. Most banks will reverse a fee if you can show you were given wrong information.
If you are closing because of a low balance or high fees, ask whether the bank offers a different account type with lower fees or no minimum balance. You may be able to keep your account open and simply switch to a better product without closing.
What happens to your money when you close
Your money does not disappear when you close the account. The bank will either transfer it to another account you own at that bank, transfer it to an account at a different bank, or issue you a check. You choose which option you want. The transfer usually takes one to three business days if you are moving money to another bank.
Make sure you have somewhere for the money to go before you close. If you do not provide a destination, the bank may hold the money or send it to you by check, which takes longer. Some banks will not close an account until the balance is zero, so you have to withdraw or transfer the money first.
Savings accounts with no early closure penalty
High-yield savings accounts offered by online banks almost never charge an early closure penalty. Banks like Marcus, Ally, and American Express Personal Savings do not charge a fee to close, and they do not charge monthly maintenance fees either. If you are comparing accounts and want to avoid any closure fees, these types of accounts are the safest choice.
Credit unions also tend to have lower or no early closure penalties. If you belong to a credit union, check your account agreement or ask a teller whether a penalty applies. Credit unions are often more flexible about fees than large banks.
Frequently Asked Questions
Can a bank charge me a fee after I close the account?
No. Once the account is closed and the balance is zero, the bank cannot charge you fees. However, the bank can charge fees up to and including the day you close. If a monthly fee is pending when you close, the bank may charge it before processing the closure.
What if I close my account and then the bank charges me a fee?
Contact the bank and ask them to reverse the fee. Explain that you closed the account and should not have been charged. If the fee was charged after the account was closed, the bank made an error and should refund it. If the bank refuses, you can file a complaint with the Consumer Financial Protection Bureau or your state's banking regulator.
Do I lose interest if I close early?
You lose any interest that would have been earned after you close. If you close mid-month, you typically receive interest only through the day you close. Some accounts require you to maintain a balance for a full month to earn that month's interest, so closing early may mean losing that month's interest entirely.
Can I close a savings account online, or do I have to go to a branch?
Most online banks let you close an account through their website or app. Traditional banks usually require you to call or visit a branch. Check your bank's website or app to see whether the closure option is available online. If not, call the customer service number on your statement.
Will closing a savings account hurt my credit score?
No. Closing a savings account does not affect your credit score because savings accounts are not reported to credit bureaus. Only credit products like credit cards, loans, and lines of credit appear on your credit report.