The basic steps to close a savings account

Closing a savings account takes a few steps, but it is straightforward. You contact your bank, withdraw or transfer out any remaining money, and confirm the account is closed. Most banks let you do this in person, by phone, or online — the method depends on the bank and whether you have an active balance.

The process usually takes a few minutes if you are in a branch, or a few days if you are doing it by mail or phone. Some banks close the account immediately after you withdraw the funds. Others send a confirmation letter in the mail. Either way, you should see the account disappear from your online banking within a week.

Key Takeaways

  • You must withdraw or transfer all money from the account before closing it — banks will not close an account with a balance.
  • Contact your bank through the method that works for you: in person at a branch, by phone, or through online banking, depending on what the bank offers.
  • If the account has a penalty for early closure, the bank will tell you the amount before you close it, and it will be deducted from your final balance.
  • Ask for written confirmation that the account is closed, either in person or by requesting it by mail, so you have a record.

Why you might close a savings account

People close savings accounts for different reasons. You might be moving to a bank with better interest rates, consolidating multiple accounts at different banks, or simply no longer needing the account. Whatever the reason, the process is the same.

If you are closing the account because of poor customer service or low interest rates, that is worth noting — it helps you decide whether to move your money to a different bank or just a different account at the same bank. Some banks offer multiple savings products with different rates, so you might stay with the bank but switch account types instead of closing entirely.

Withdrawing or transferring your money first

Before the bank will close your account, you need to remove all the money in it. You have two options: withdraw the cash, or transfer it to another account.

A withdrawal means you take the money out as cash or a check. You can do this at a branch, at an ATM (if the bank offers ATM withdrawals for that account type), or by requesting a check mailed to you. If the balance is large, a check is often safer than carrying cash.

A transfer means you move the money electronically to another account — at the same bank or a different one. This is faster and safer than withdrawing cash. You can set up a transfer through online banking, by phone, or in person at a branch. If you are moving to a different bank, the receiving bank can often initiate the transfer for you, which is called an ACH transfer (Automated Clearing House). This usually takes one to three business days.

Some banks charge a fee for closing an account within a certain time period — often six months to a year after opening it. If your account has this penalty, the bank will deduct it from your final balance. Ask about this before you close, so you know exactly how much money you will receive.

How to contact your bank to close the account

Most banks offer three ways to close an account: in person, by phone, or online. Which method you use depends on what your bank offers and what is easiest for you.

In person: Visit a branch with your ID and ask to close the account. The banker will confirm your balance, process any withdrawal or transfer, and may give you a receipt on the spot. This is the fastest way if you have a branch nearby.

By phone: Call the customer service number on the back of your debit card or on your bank statement. Have your account number and ID information ready. The representative will verify your identity, confirm your balance, and ask how you want to withdraw the money. They will then process the closure. Ask them to mail you written confirmation.

Online: Some banks let you close accounts through their website or app. Log in, find the account settings, and look for a "close account" or "manage account" option. Not all banks offer this, so check your bank's website first. If the option is not there, you will need to call or visit a branch.

What happens after you close the account

Once the account is closed, you will no longer be able to deposit money into it or access it through online banking. The account will disappear from your banking dashboard within a few days to a week.

If you set up any automatic transfers or deposits to go into this account, they will fail. Before you close, check whether any regular payments or direct deposits are linked to it. If they are, you will need to update those instructions to point to a different account, or cancel them if you no longer need them.

Keep any statements or records from the account for your files, especially if you had a large balance or the account was open for many years. Banks are required to keep records of closed accounts, but having your own copy is useful for tax purposes or if a question comes up later.

Early closure fees and penalties

Some savings accounts charge a fee if you close them within a certain window — typically six months to two years after opening. This is called an early closure penalty or account closure fee. The amount varies by bank and account type.

When you contact your bank to close the account, ask whether a penalty applies. If it does, the bank will tell you the exact amount and will deduct it from your final balance before you receive your money. For example, if your account has $500 and a $25 closure fee, you will receive $475.

If the fee seems high, you can ask whether the bank will waive it, especially if you have been a customer for a long time or have other accounts with them. Banks sometimes make exceptions, though they are not required to. It never hurts to ask.

Frequently Asked Questions

Can I close a savings account if it has a negative balance?

No. If your account is overdrawn, you owe the bank money. You must deposit funds to bring the balance to zero or positive before closing. Once the balance is zero or positive, you can proceed with closing.

What if I forgot about the account and haven't used it in years?

You can still close it. Contact your bank with your ID and account number. If you cannot remember the account number, the bank can look it up using your name and Social Security number. The process is the same as closing any other account.

Do I need to close the account in person, or can I do it by phone?

Most banks let you close by phone or online. In-person closure is an option but not a requirement. Call your bank's customer service line or check their website to see which methods they offer. Ask for written confirmation by mail regardless of which method you use.

Will closing a savings account hurt my credit score?

No. Closing a savings account does not affect your credit score. Credit scores are based on borrowing and repayment history, not on deposit accounts. Closing a savings account is a routine banking action with no credit impact.

What if the bank says they cannot close the account?

Banks are required to close accounts when you request it, as long as the balance is zero or positive. If a representative says they cannot close it, ask to speak with a supervisor or call back and speak with someone else. If the issue persists, contact your state's banking regulator or the Consumer Financial Protection Bureau (CFPB) for guidance.