Close it if you're paying fees you don't need to pay, or if another bank offers better rates and you've moved your direct deposits elsewhere

Closing a Chase savings account makes sense if you're being charged monthly maintenance fees and can't waive them, or if you've found a bank offering significantly higher interest rates and you're ready to move your money. It also makes sense if you're consolidating accounts or if Chase's service no longer fits how you bank. Closing is straightforward—you can do it online, by phone, or in person—but the timing matters because of how deposits and pending transactions work.

The real question is whether closing costs you money in the form of lost interest, early withdrawal penalties, or account closure fees. Chase does not charge a fee to close a savings account, but you need to know what happens to your balance, how long the process takes, and whether you should move your money first or let Chase handle it.

Key Takeaways

  • Chase charges no fee to close a savings account, but you must have a zero balance or tell them where to send remaining funds.
  • If you close mid-month, you'll still earn interest on the balance through the end of that month, but you won't earn it in future months.
  • You can close online through your Chase account, by calling 1-800-935-9935, or by visiting a branch in person.
  • If you have pending direct deposits or automatic transfers set to that account, cancel or redirect them before closing to avoid rejected transactions.
  • Chase will mail you a 1099-INT form in January if you earned more than $10 in interest during the year you closed the account.

Why people close Chase savings accounts

The most common reason is fees. Chase's regular savings account charges a $5 monthly maintenance fee unless you maintain a minimum balance (which varies by account type and region, typically $300 to $500) or have a may have access to direct deposit. If you're not meeting those conditions and don't want to pay, closing makes sense.

The second reason is interest rates. Chase's savings rates are often lower than online banks or credit unions offer. If you've found an account paying 4% or higher while Chase is paying 0.01%, moving your money to earn more interest over time is rational—especially if you have a large balance sitting there.

The third reason is account consolidation. If you have multiple Chase accounts and want to simplify, closing a savings account you're not using frees you from tracking it and reduces the number of statements you receive.

What happens to your money when you close

Your balance doesn't disappear. When you close a Chase savings account, you must either transfer the money out yourself or tell Chase where to send it. If you close online or by phone, you'll be asked to provide instructions—either transfer it to another Chase account you own, or provide routing and account numbers for an external bank account. If you close in person at a branch, the teller will help you move the money or can issue you a check.

The transfer typically takes one to three business days if you're moving money to another Chase account, or three to five business days if you're sending it to an external bank. During that time, your account remains open. Once the money clears and the balance hits zero, the account closes automatically or on the date you specified.

If you have a pending direct deposit scheduled to arrive after you close, that deposit will be rejected and returned to the sender. This is why you need to update your direct deposit information with your employer or the organization sending the money before you close the account.

Interest you'll earn before closing

Chase calculates interest daily but deposits it monthly, usually on the last business day of the month. If you close on the 15th of the month, you'll still earn interest on your balance from the 1st through the 15th, and that interest will be deposited on the last business day of that month—even though your account is closed. You won't earn interest for any month after the one in which you close.

The amount of interest depends on your balance and Chase's current rate. You can see your current rate by logging into your Chase account or calling 1-800-935-9935. The interest you earn will be reported to the IRS on a 1099-INT form if it totals $10 or more during the calendar year. Chase will mail this form to you in January of the following year, and you'll need it for your tax return.

How to close your account

Online: Log into your Chase account, go to the account settings or account details page, and look for a "Close Account" or "Manage Account" option. Chase's website will walk you through confirming your balance and providing instructions for where to send remaining funds. You'll receive a confirmation number.

By phone: Call Chase customer service at 1-800-935-9935. A representative will verify your identity, confirm your balance, and ask where you want the money sent. The call usually takes 5 to 10 minutes. Ask for a confirmation number and note the date and time of the call.

In person: Visit any Chase branch with your ID and debit card or account information. A teller can close the account immediately and either transfer your balance to another account, issue a check, or arrange an external transfer. This is the fastest method if you want the money in your hands the same day.

Before you close, make sure you have no pending transactions, no scheduled automatic payments or transfers linked to that account, and no direct deposits set to arrive there. If you do, update those first or they will fail.

What to do before closing

First, redirect or cancel any automatic transfers or bill payments linked to the account. Log into Chase and check the "Transfers" and "Bill Pay" sections to see what's set up. If you have automatic transfers to pay a credit card or loan, move those to a different account or cancel them and set them up elsewhere.

Second, update your direct deposit. Contact your employer's payroll department or the organization sending you regular deposits (Social Security, a pension, etc.) and provide them with your new account number at a different bank. This usually takes one to two pay cycles to take effect, so do this at least a week before you plan to close.

Third, review your last few statements to make sure there are no pending transactions you've forgotten about. If you've written checks or authorized ACH payments that haven't cleared yet, wait for them to post before closing.

Fourth, decide where your money is going. If you're moving it to another bank, have that account number and routing number ready. If you're moving it to another Chase account, you can do this instantly within the Chase app or website.

After your account closes

Once the account is closed and your balance is zero, you won't be able to access it or make deposits to it. If you receive a check or payment sent to that account number after it closes, it will be rejected. This is why updating direct deposits and automatic payments is critical.

Chase will keep records of the closed account for your file. If you need a statement or documentation of transactions from that account, you can request it by calling 1-800-935-9935 or visiting a branch. Chase typically keeps records for seven years.

If you closed the account and later realize you need to reopen it, you can do so by visiting a branch or calling customer service. Chase may allow you to reopen a recently closed account, but this depends on how long ago it closed and your account history. There's no may provide, so don't count on this as a backup plan.

Frequently Asked Questions

Will closing my Chase 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. Credit scores are based on credit accounts like credit cards, loans, and lines of credit. Closing a savings account has no impact on your creditworthiness.

What if I have a pending direct deposit scheduled to arrive after I close?

The deposit will be rejected and returned to the sender, usually within five to ten business days. The sender will then need to reissue the payment to your new account number. This is why you must update your direct deposit information before closing the account.

Can I reopen a Chase savings account I just closed?

You may be able to reopen it if you closed it recently, but Chase does not may provide this. If you think you might need the account again, wait a few days before closing, or open a new account at another bank first and make sure it works for you before closing the Chase account.

Do I owe taxes if I close my savings account?

No. Closing the account itself is not a taxable event. However, any interest you earned on the account during the year is taxable income. If you earned $10 or more in interest, Chase will send you a 1099-INT form in January, and you'll report that interest on your tax return.

How long does it take for my money to arrive at my new bank after I close?

If you're transferring to another Chase account, the money moves instantly or within one business day. If you're transferring to a different bank, it typically takes three to five business days. If Chase issues you a check, you'll receive it in the mail within five to seven business days, and it takes another one to three days to clear at your new bank.