The basic steps to close a savings account
To close a savings account, contact your bank or credit union directly—by phone, in person, or through their website—and tell them you want to close the account. Before you do, withdraw or transfer any remaining balance, pay any outstanding fees, and make sure no automatic deposits or payments are still linked to that account. The bank will confirm the closure, usually within a few business days, and send you written confirmation.
The exact process varies slightly by institution. Some banks let you close an account online through your login. Others require a phone call or a visit to a branch. Credit unions often have the same options but may ask you to sign a form. Call the customer service number on your bank statement or card to find out which method your bank uses.
If the account has a balance remaining, you have two choices: withdraw the money in cash or have the bank transfer it to another account you own at the same bank or elsewhere. Most banks can move the money to a different bank within one to three business days if you provide the routing number and account number of the receiving account.
Key Takeaways
- Contact your bank by phone, in person, or online to request closure, and make sure the account balance is zero or transferred elsewhere before you close it.
- Stop any automatic deposits, bill payments, or transfers linked to the account at least a few days before you close it to avoid failed transactions.
- The bank will send written confirmation of the closure, usually within a few business days, and you should keep that confirmation for your records.
- If you owe fees or have an overdraft balance, the bank will deduct those amounts from your remaining balance before closing the account.
- Some banks charge a fee to close an account early if it was opened within a certain period; ask about this before you request closure.
What to do with your money before closing
Decide where your money will go before you call the bank. If you have $500 in the account, you can withdraw it as cash, move it to another savings account, or deposit it into a checking account. Write down the exact amount so you know what to expect.
If you are transferring the balance to another bank, have that account's routing number and your account number ready when you call. The receiving bank's details should be on a check or in your online banking portal. Tell your current bank where to send the money, and they will handle the transfer. This usually takes one to three business days, depending on both banks' processing times.
If you are withdrawing cash, ask whether the bank will give you the full amount at once or if there are limits on large withdrawals. Some banks require notice for withdrawals over a certain amount. If you are closing the account in person, bring a photo ID and ask for a cashier's check if you do not want to carry large amounts of cash.
Stop automatic transactions before you close
Any automatic deposits, bill payments, or transfers tied to the account must be stopped or redirected before closure. If your paycheck deposits into this account, update your employer's payroll system to send future paychecks to a different account. If you have automatic bill payments set up, log into each biller's website and change the payment method or account number.
Do this at least three to five business days before you close the account. If a payment tries to process after the account is closed, it will fail, and you may face late fees from the biller or overdraft fees from your bank. Check your account statements from the past few months to see which companies have automatic access, then contact each one.
Some banks will not close an account if there are still pending transactions. If you call to close and the bank tells you there is a hold, ask what transactions are pending and when they will clear. You may need to wait a few days and call back.
Fees and penalties for early closure
Some banks charge a fee if you close a savings account within a certain time frame—often 90 days to one year after opening it. This is called an early closure fee or account closure fee, and it typically ranges from $25 to $100, though amounts vary by bank. The fee is deducted from your account balance before the account closes.
Ask your bank whether this fee applies to your account before you request closure. If you opened the account recently and a fee applies, you can decide whether it makes sense to wait or to pay the fee and close now. Some banks will waive the fee if you ask, especially if you have been a customer for a long time or if you are closing because of poor service.
If your account has an overdraft balance—meaning you owe the bank money—that amount will also be deducted from any remaining balance. For example, if you have $200 in the account but owe $50 in overdraft fees, the bank will close the account with $150 transferred or withdrawn.
How long closure takes and what confirmation looks like
Most banks close an account within one to five business days after you request it. If you are closing in person or by phone, the bank may close it the same day, but the written confirmation arrives by mail a few days later. If you close online, the account may show as closed immediately in your login, but the official confirmation still comes by mail.
Keep the written confirmation letter for your records. It will show the account number, the closure date, the final balance, and any fees deducted. If you transferred money to another bank, the confirmation will show where it went. If you ever need to prove the account is closed—for tax purposes, for a dispute, or for a credit application—you will have this letter.
If you do not receive written confirmation within two weeks, contact the bank and ask for it. Some banks offer to email confirmation instead of mailing it; ask whether that option is available.
What happens to your account after it closes
Once closed, you cannot use the account to deposit money, withdraw funds, or make transfers. Any debit card linked to the account will stop working. If someone tries to deposit money into the closed account, the deposit will be returned to the sender, usually within a few business days.
The account will remain on your banking history for several years. This does not hurt your credit score—closing a savings account has no effect on credit—but it may appear on your bank's internal records if you ever reopen an account with them. If the account was closed in good standing with no negative balance, there is no problem.
If you closed the account because of fraud or unauthorized activity, report it to your bank in writing and keep a copy for your records. If the account had a negative balance that you did not pay, the bank may send it to a collection agency or report it to ChexSystems, a banking history database that other banks check when you open new accounts.
Closing an account at a credit union instead of a bank
Credit unions follow the same basic process as banks, but membership rules may apply. Some credit unions require you to maintain a small balance in a savings account to keep your membership active. Before you close your savings account, ask whether closing it will end your membership or affect your access to other accounts or services.
If you have a loan with the credit union, closing your savings account will not affect the loan, but the credit union may require you to keep a small amount on deposit as collateral. Ask about this when you call to close the account.
Credit unions often process closures faster than banks because they are smaller. You may be able to close an account the same day you request it, especially if you visit a branch in person.
Frequently Asked Questions
Can I close a savings account online, or do I have to go to a branch?
Many banks let you close an account online through your login, but some require a phone call or in-person visit. Check your bank's website or call customer service to find out which methods are available for your account. If online closure is not an option, phone is usually faster than visiting a branch.
What if I have a negative balance or owe the bank money?
The bank will deduct what you owe from any remaining balance before closing the account. If you owe more than the balance, the bank may refuse to close the account until you pay the difference. Contact the bank to find out the exact amount owed and whether you can pay it before closure.
Will closing a savings account hurt my credit score?
No. Closing a savings account has no effect on your credit score because savings accounts are not reported to credit bureaus. Only credit accounts like credit cards, loans, and lines of credit affect your credit.
How long does it take to transfer money to another bank when I close?
A transfer between banks usually takes one to three business days. The sending bank initiates the transfer, and the receiving bank processes it on their end. Weekends and holidays can add time. Ask both banks for an estimate when you request the transfer.
What if I change my mind after closing the account?
You can reopen an account with the same bank, but it will be treated as a new account with a new account number. If you closed because of an early closure fee, that fee may apply again if you reopen within the same time frame. Contact the bank to ask about reopening and any fees involved.