What happens when you close a savings account
Closing a savings account means you end your relationship with the bank and withdraw whatever money is in it. The bank will stop charging you monthly fees (if there were any), stop paying you interest, and remove the account from your records. You keep the money—the bank does not keep it. The process usually takes a few minutes in person or a few days by mail or phone, depending on how you do it.
Before you close, make sure you know your current balance, have moved or withdrawn the money you want to keep, and have canceled any automatic deposits or payments tied to that account. If you leave money behind or forget to redirect direct deposits, the bank will hold it and you will have to contact them later to get it.
Key Takeaways
- You can close a savings account in person at a branch, by phone, or by mail—in-person is fastest and gives you proof the same day.
- Withdraw or transfer your money before you close, and check your balance to make sure you know how much is there.
- Stop any automatic deposits, bill payments, or transfers linked to the account before you close it.
- Ask the bank for written confirmation that the account is closed, or take a photo of the receipt if you close in person.
- If the account has a negative balance or unpaid fees, the bank may refuse to close it until you pay what you owe.
Close in person at a branch
Walk into any branch of your bank with your ID and ask to close the account. Tell the teller which account you want to close. They will pull up your balance, confirm there are no holds or pending transactions, and ask how you want the money. You can take it as cash, have it transferred to another account at the same bank, or request a check mailed to you.
This is the fastest way because you walk out with proof the same day—the teller will print a receipt showing the account is closed and how much money you received. Keep this receipt. If the bank later claims the account is still open or charges you a fee, you have documentation that proves otherwise.
If you do not have a branch nearby or cannot get there during business hours, use one of the other methods below.
Close by phone
Call the customer service number on the back of your debit card or on your bank statement. Tell them you want to close the account. They will verify your identity by asking for your Social Security number, date of birth, or answers to security questions you set up when you opened the account.
Ask them to confirm your current balance and tell you how the money will be sent to you. Most banks will mail you a check within 5 to 10 business days. Some will transfer the money to another account you own at the same bank or a different bank if you provide the routing and account numbers. Write down the date you called, the name of the representative, and what they said would happen to your money. This becomes your record if something goes wrong.
After you hang up, send a follow-up email to the bank's customer service address (found on their website) stating that you called on [date] to close the account and asking them to confirm in writing that it is closed. This creates a paper trail.
Close by mail
Write a letter to your bank's customer service address (listed on their website or your statement). Include your full name, the account number you want to close, your current address, and your signature. Keep a copy for yourself.
In the letter, state that you want to close the account and ask how the remaining balance will be sent to you. Mail it certified mail with return receipt so you have proof the bank received it. The bank will typically respond within 7 to 14 business days, and the check will arrive separately within another week or two.
This method is slower than phone or in-person, but it creates a written record from the start. Use it if you prefer not to call or if you are closing an account at a bank where you have no local branch.
What to do before you close
Check your account balance online or by calling the bank. Write down the exact amount so you know what to expect when you close. If there are any pending transactions, ask the bank when they will clear before you proceed.
Stop any automatic deposits going into this account. If your paycheck, Social Security, or other regular payment goes to this account, change the deposit information with your employer or the paying organization at least a week before you close. If you forget, the money will bounce back to the sender and you will have to contact them to resend it.
Cancel any automatic bill payments or transfers set up from this account. Check your online banking to see what is scheduled. If you have automatic transfers to another savings account or checking account, turn those off. If you have automatic bill payments, move them to a different account or set them up with the biller directly before you close.
If there is a minimum balance requirement and your balance is below it, you may owe fees. Ask the bank if there are any outstanding fees or charges before you close. If you owe money, the bank may not close the account until you pay.
What happens to your money
When you close the account, the bank will give you the remaining balance in one of three ways: as cash if you close in person, as a check mailed to you, or as a transfer to another account. Ask which option you want when you close.
If you choose a check, it will be mailed to the address on file. Make sure your address is current before you close. If you move before the check arrives, contact the bank and give them your new address so they can remail it.
If you choose a transfer to another account, provide the bank with the routing number and account number of the account where you want the money to go. The transfer usually takes 3 to 5 business days. Do not close the account until you see the money arrive in the other account.
If something goes wrong
If you close the account but the bank continues to charge you fees, or if money you were supposed to receive never arrives, contact the bank immediately. Have your receipt or written confirmation of the closure date ready. Explain what happened and ask them to reverse any charges or resend the money.
If the bank does not fix the problem within 10 business days, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. You can also contact your state's banking regulator or attorney general's office. Include copies of your proof of closure and any correspondence with the bank.
If a check was mailed but never arrived, ask the bank to stop payment on the original check and issue a new one. This usually takes 5 to 10 business days. If the bank says the check was cashed but you did not receive it, report it as fraud to the bank and file a police report.
Frequently Asked Questions
Can I close a savings account if it has a negative balance?
No. If you owe the bank money—because of overdraft fees, returned checks, or other charges—you must pay what you owe before the bank will close the account. Ask the bank how much you owe and pay it by the method they accept, then request closure again.
What if I have a joint account with someone else?
Both account holders usually have to agree to close it. Contact the bank and ask what their policy is. Some banks allow one person to close a joint account; others require both people to sign off. If you cannot reach the other person, ask the bank what options you have.
Will closing a savings account hurt my credit score?
No. Closing a savings account does not affect your credit because savings accounts do not appear on your credit report. Only credit cards, loans, and lines of credit show up on your credit history.
How long does it take to close a savings account?
In person, it takes a few minutes. By phone, it takes 10 to 20 minutes plus 5 to 10 business days to receive your money by check. By mail, it takes 7 to 14 days for the bank to respond, plus another week or two for a check to arrive.
What if I close the account but then want to reopen it?
You can open a new savings account at any time, but it will have a different account number. The old account stays closed. If you change your mind within a few days of closing, call the bank and ask if they can reopen it—some banks will do this, but it is not may provide.