Closing a savings account does not directly hurt your credit score
Closing a savings account by itself will not lower your credit score. Credit bureaus do not track savings accounts, checking accounts, or money market accounts. They track only credit activity — loans, credit cards, and payment history. A savings account has no credit component, so closing one leaves no mark on your credit report.
The confusion often comes from mixing up savings accounts with credit accounts. A savings account is a deposit account where you store money. A credit card or loan is a credit account where you borrow money and build a payment history. Banks may offer both, but they report to credit bureaus only the credit side.
That said, closing a savings account can have indirect effects on your finances that matter for credit. Those effects depend on why you are closing the account and what you do next.
Key Takeaways
- Closing a savings account does not appear on your credit report because savings accounts are deposit accounts, not credit accounts.
- Your credit score can be affected indirectly if closing the account leaves you without emergency funds and forces you to miss a credit card or loan payment.
- If you have a linked overdraft protection between a savings account and a credit card, closing the savings account removes that safety net.
- Moving money to a new savings account or bank does not hurt your credit, as long as you do not apply for new credit in the process.
- Closing a credit card tied to a savings account (like a rewards checking account) is different from closing the savings account itself and may affect your credit.
When closing a savings account can indirectly harm your credit
The real risk comes if closing your savings account removes a financial cushion you were using to cover emergencies. Without that buffer, you might miss a payment on a credit card or loan when an unexpected expense hits. A missed payment does damage your credit score, and it stays on your report for seven years.
For example: you close a savings account that held $2,000 in emergency funds. Two months later, your car needs a $1,500 repair. Without the savings, you cannot pay it, so you skip a credit card payment to cover the repair instead. That missed payment gets reported to the credit bureaus and lowers your score. The damage came from the missed payment, not from closing the account — but the account closure created the condition that led to it.
Another indirect risk: if your savings account had overdraft protection linked to a credit card, closing the savings account removes that safety net. The next time you overdraw your checking account, the credit card will not cover it automatically. You might face overdraft fees or a bounced transaction, and if you cannot pay the credit card bill as a result, your credit takes a hit.
Savings accounts and credit inquiries — what actually shows up
When you close a savings account at your current bank, the bank does not run a credit check and does not report the closure to credit bureaus. You can close as many savings accounts as you want without any credit inquiry or credit report entry.
The risk of a credit inquiry comes only if you open a new account at a different bank. Some banks run a hard inquiry (also called a hard pull) when you open a checking or savings account. A hard inquiry can lower your score by a few points, though the effect is temporary. However, not all banks do this — many check only your banking history through ChexSystems, a banking-specific reporting system that is separate from credit bureaus.
If you are closing your savings account to move money to another bank, ask the new bank whether they run a credit check before you apply. If they do, the inquiry itself is minor and short-lived. The bigger concern is whether you actually need to move the account at all, or whether you can keep the savings where it is while opening a new account elsewhere.
The difference between closing a savings account and closing a credit card
Closing a credit card can hurt your credit score. Closing a savings account cannot. The difference matters because some accounts blur the line.
A traditional savings account is a deposit account. Closing it has no credit impact. A credit card is a credit account. Closing it can lower your score because it reduces your available credit and may shorten your average account age if it was an old card.
Some banks offer hybrid products — a rewards checking account that comes with a linked credit card, or a savings account that earns interest only if you maintain a linked credit card. If you close the credit card part of that relationship, your credit score can be affected. If you close only the savings or checking part and keep the credit card open, your credit is unaffected by the account closure itself.
Read your account agreement or call your bank to confirm what type of account you are closing. If it is purely a savings account with no credit component, closing it will not touch your credit report.
What to do before closing a savings account
Before you close, make sure you have another way to cover emergencies. If you are closing because you need the money, that is one decision. If you are closing because you want to switch banks or consolidate accounts, keep some emergency funds somewhere — even a small amount helps prevent missed payments on credit accounts.
Transfer your money to the new account first, then request the closure. Most banks let you close online or by phone. Some require you to visit a branch in person, especially if you have a large balance or the account is very old. Ask whether there are any fees for closing early — some savings accounts have minimum balance requirements or early closure penalties, though these are less common than they used to be.
If the account has automatic transfers set up (like a monthly deposit from your paycheck), cancel those before closing. If you have checks or a debit card linked to the account, stop using them and wait for the account to fully close before you assume the funds are gone.
If you closed a savings account and your credit score dropped
If your credit score fell after closing a savings account, the account closure itself was not the cause. Look for the real reason by checking your credit report. You can get a free copy once per year from each of the three major bureaus — Equifax, Experian, and TransUnion — at AnnualCreditReport.com.
Common reasons your score might have dropped around the same time you closed the account: a missed or late payment on a credit card or loan, a new hard inquiry from a new bank account or credit application, a higher credit card balance (which raises your credit utilization ratio), or a collection account or negative item that was reported to the bureaus.
If you see an error on your report — a payment marked late when you paid on time, or an account listed that is not yours — you can dispute it with the bureau. The bureau has 30 days to investigate. If the error is confirmed, it will be removed or corrected.
Frequently Asked Questions
Will closing my savings account show up on my credit report?
No. Savings accounts are not reported to credit bureaus at all. Only credit accounts like credit cards, loans, and lines of credit appear on your credit report. Closing a savings account leaves no trace on your credit history.
Can I close multiple savings accounts without hurting my credit?
Yes. You can close as many savings accounts as you want without any credit impact. The only risk is if closing them removes your emergency fund and forces you to miss a payment on a credit account. The missed payment would hurt your credit, not the account closures themselves.
Does transferring money between savings accounts hurt my credit?
Moving money between your own accounts does not hurt your credit. Opening a new savings account at a different bank might trigger a hard inquiry if that bank runs a credit check, but many banks do not. Ask before you open the account if you want to avoid any inquiry.
What if I close my savings account and then cannot pay a bill?
If you cannot pay a credit card or loan bill because you no longer have emergency savings, that missed payment will be reported to credit bureaus and will lower your score. The damage comes from the missed payment, not from closing the savings account. To avoid this, keep some emergency funds set aside before you close any account.
Is closing a savings account different from closing a checking account?
No. Both are deposit accounts with no credit component. Closing either one has no direct impact on your credit score. The only difference is that a checking account may have a linked debit card or automatic bill payments, which you should cancel before closing.