You can close an Ally account online, by phone, or by mail—but you must settle your balance and stop automatic payments first
Ally Bank lets you close a checking or savings account through their website, by calling customer service, or by sending a written request. Before you close, you need to withdraw or transfer any remaining balance, cancel any automatic bill payments or transfers linked to that account, and wait for any pending deposits or withdrawals to clear. Ally does not charge a fee to close an account, but they will report the closure to ChexSystems, which other banks see when you open a new account elsewhere.
The fastest method is closing online through your Ally account dashboard if you have a zero balance. If you have money in the account or active automatic payments, you will need to handle those first—which usually takes a few days to a week depending on how many transactions are pending.
Key Takeaways
- You must have a zero balance in the account before Ally will close it, so transfer or withdraw all remaining money first.
- Cancel any automatic bill payments, recurring transfers, or direct deposits tied to the account at least a few days before closing.
- Online closure through your Ally dashboard is the fastest option if your balance is zero and no transactions are pending.
- Ally reports the closure to ChexSystems, which may affect your ability to open accounts at other banks for up to five years.
- If you have an Ally credit card, closing your bank account does not close the card—you must close them separately.
Transfer your money and cancel automatic payments before you start
Do not attempt to close your account while money is still in it. Ally will not process the closure until the balance is zero. Log into your account and transfer the full balance to another bank account you control, or withdraw it in cash at an ATM or branch. If you have pending direct deposits or automatic bill payments scheduled, those transactions will still go through even after you request closure, so you need to stop them first.
Go to your account settings and look for the section labeled "Payments" or "Transfers." Cancel every automatic payment, recurring transfer, and direct deposit linked to this account. Then wait three to five business days for those cancellations to take effect and for any transactions already in motion to clear. Check your account balance again to confirm it is zero before you proceed to close.
Close your account online through your Ally dashboard
Log into your Ally account on their website or mobile app. Navigate to your account settings—this is usually found under a menu labeled "Settings," "Account," or a gear icon. Look for an option that says "Close Account" or "Account Closure." Ally will ask you to confirm your identity and may ask why you are closing. You do not have to provide a reason, but Ally uses this information to improve their service.
Review the confirmation screen carefully. Ally will tell you the account is scheduled for closure and provide a confirmation number. The account typically closes within one to three business days. You will receive an email confirmation once the closure is complete. If the online option is not available—for example, if your account is overdrawn or has a hold on it—you will need to call or mail a request instead.
Close by phone if you cannot do it online
Call Ally Bank customer service at the number on the back of your debit card or on your account statement. Tell the representative you want to close your account. They will verify your identity by asking for your Social Security number, date of birth, and account number. Confirm that your balance is zero and that you have canceled all automatic payments.
The representative will process the closure over the phone and give you a confirmation number. Ask them to send you written confirmation by email or mail. The account will close within one to three business days. Keep the confirmation number and any email confirmation in case you need to reference the closure later.
Send a written closure request by mail
If you prefer not to call or use the website, you can close your account by mail. Write a letter to Ally Bank that includes your full name, account number, the date, and a clear statement that you want to close the account. Sign the letter and include a copy of a government-issued ID (driver's license or passport). Do not send the original ID—send a photocopy.
Mail the letter to the address listed on your account statement or on Ally's website under "Contact Us." Send it via certified mail with return receipt so you have proof it arrived. Ally typically takes five to ten business days to process a mailed closure request, longer than online or phone closure. Keep your receipt and the return card as proof you sent the request.
What happens to your account after closure
Once Ally closes your account, you can no longer use the debit card or make transfers from it. Any pending transactions that have not yet cleared may still post to the account for a few days after closure. If a transaction posts after the account is closed and overdrafts the account, Ally may charge an overdraft fee. This is rare, but it is why you should confirm your balance is truly zero before closing.
Ally reports the closure to ChexSystems, a banking history database that other banks check when you open a new account. The closure itself does not hurt your ability to open accounts elsewhere, but if you had overdrafts or unpaid fees on the account, those may show up on your ChexSystems report and could affect future applications. If you had a linked Ally credit card, closing the bank account does not close the card—you must close the credit card separately through your credit card account settings or by calling the credit card customer service line.
If your account is overdrawn or has a hold
Ally will not close an account that has a negative balance. If your account is overdrawn, you must deposit money to bring it to zero before you can close it. If there is a hold on the account—usually placed by Ally due to suspicious activity or a dispute—you will need to contact customer service to have the hold lifted first. Explain the situation to the representative and ask what steps you need to take to remove the hold.
If you have an outstanding balance from a loan or credit card, closing your bank account does not erase that debt. You will still owe the money and Ally may attempt to collect it. If you are closing your account to avoid debt collection, be aware that Ally can pursue other collection methods and may report the debt to credit bureaus.
Frequently Asked Questions
Does Ally charge a fee to close my account?
No. Ally does not charge a fee to close a checking or savings account. However, if your account is overdrawn when you close it, you may be charged an overdraft fee. Make sure your balance is zero before you submit your closure request.
How long does it take to close an Ally account?
Online closure usually takes one to three business days. Phone closure also takes one to three business days. Mailed requests take five to ten business days. The timeline starts from when Ally receives and processes your request, not from when you submit it.
Will closing my Ally account hurt my credit score?
Closing a bank account does not directly affect your credit score because bank accounts are not reported to credit bureaus. However, if you had overdrafts or unpaid fees that Ally reported to ChexSystems, those may show up when you open accounts at other banks.
What if I have automatic bill payments set up on this account?
You must cancel all automatic payments before closing the account. If you do not, those payments may fail after the account closes, which could result in late fees from the companies you owe. Cancel them at least three to five business days before you close the account to give the cancellations time to take effect.
Can I reopen an Ally account after I close it?
Yes, you can open a new Ally account after closing one. However, Ally will see the previous closure on your ChexSystems report. If the previous account had problems like overdrafts or fraud, Ally may deny your new application. Contact Ally customer service to ask about their policy on reopening accounts if you are concerned.