Yes, banks can charge you for closing an account, but most do not
Most banks will close your account for free. However, some banks and credit unions charge a closure fee — typically $25 to $100 — if you close the account within a certain window, usually 90 days to one year after opening it. A few banks charge a fee no matter when you close. The fee appears as a debit on your final statement or is deducted from your remaining balance.
Whether you owe a closure fee depends on three things: your bank's policy, how long you have held the account, and the account type. Checking accounts are more likely to carry a fee than savings accounts. Some banks waive the fee if you maintain a minimum balance or keep the account open for a set period. Others charge it regardless.
The fee is not a penalty for closing early — it is a stated charge in your account agreement. You can find it by searching your account paperwork for "early closure fee," "account closure fee," or "termination fee." If you cannot find it, call your bank's customer service line and ask directly.
Key Takeaways
- Most banks do not charge to close an account, but some charge $25 to $100 if you close within 90 days to one year of opening.
- The fee is listed in your account agreement under terms like "early closure fee" or "termination fee" — call your bank if you cannot locate it.
- Fees vary by account type: checking accounts are more likely to charge than savings accounts.
- Some banks waive the fee if you keep a minimum balance or wait out the holding period before closing.
- You can dispute a fee if it was not disclosed in your account agreement or if the bank charged it in error.
Where to find the closure fee in your account agreement
Your account agreement is the contract between you and the bank. It lists all fees, including closure fees. You received it when you opened the account — usually as a paper document or a PDF you downloaded. Search for the words "closure," "termination," "early," or "fee schedule."
If you opened the account online, log into your bank's website and look for a section called "Account Agreements," "Disclosures," "Terms and Conditions," or "Fee Schedule." Download or print the document for your account type. If the fee is not there, it does not exist — the bank cannot charge you for something not disclosed in writing.
If you cannot find the agreement online, call the bank's customer service number on the back of your card. Ask them to read you the closure fee policy for your specific account. Ask them to send you a copy of the fee schedule in writing. This creates a record if you need to dispute the charge later.
When banks charge the most common closure fees
Banks charge closure fees most often during a holding period — a window of time after you open the account. Common holding periods are 90 days, six months, and one year. If you close during this window, you pay the fee. If you close after the window ends, the fee does not apply.
Some banks charge the fee only on checking accounts, not savings accounts. Others charge it on both. A few banks — mostly online banks and credit unions — charge no closure fee at all, regardless of when you close.
Banks justify the fee by saying they lose money when customers open accounts and close them quickly without using the account. The fee is meant to discourage short-term account churning. Whether that justification makes sense to you does not matter legally — if the fee is in your agreement, the bank can charge it.
How to avoid paying a closure fee
The simplest way to avoid a closure fee is to wait. If your account agreement says the fee applies only within the first 90 days, wait 91 days before closing. If the holding period is one year, wait one year and one day. The fee disappears once the window closes.
Before you open a new account, read the fee schedule. Search for "closure fee," "early termination fee," or "account termination." If a bank charges a closure fee and you think you might close the account soon, open an account at a different bank instead. Many large banks and most online banks do not charge closure fees.
If you have already opened an account and the holding period has not ended, call the bank and ask if they will waive the fee. Some banks will waive it if you ask, especially if you have been a customer for a while or if you maintain a high balance. There is no harm in asking — the worst they can say is no.
What happens if the bank charges you without disclosing the fee
If your bank charged you a closure fee but the fee was not listed in your account agreement, you can dispute it. The bank is required by law to disclose all fees in writing before charging you. If they did not, the charge is likely improper.
Start by calling the bank's customer service line. Explain that you were charged a closure fee that was not in your account agreement. Ask them to reverse the charge. Have your final statement in front of you so you can point to the exact charge.
If the bank refuses, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. You can also file a complaint with your state's banking regulator — search "[your state] banking regulator" or "[your state] attorney general" to find the right office. Include a copy of your account agreement (or a note that the fee was not listed) and your final statement showing the charge.
Closure fees at specific bank types
Large national banks like Chase, Bank of America, and Wells Fargo generally do not charge closure fees. However, some regional banks and credit unions do. Online banks like Ally, Charles Schwab, and Discover typically do not charge closure fees either.
Credit unions vary widely. Some charge no closure fee; others charge $25 to $50 if you close within a year. Call your credit union before opening an account and ask directly. The fee policy is not always posted online.
Prepaid card accounts and money market accounts sometimes carry closure fees even at banks that do not charge them on checking or savings accounts. If you are closing an account that is not a standard checking or savings account, ask about the fee specifically.
What to do with your remaining balance before closing
Before you close, withdraw or transfer all your money. If you have a remaining balance and the bank charges a closure fee, they will deduct the fee from that balance. If your balance is smaller than the fee, the bank will charge you the difference — either by sending you a bill or by overdrafting the account if it is still open.
Withdraw the money a few days before you request the closure. This gives the bank time to process any pending transactions. If you transfer money electronically, use a method that takes one to two business days, not instant transfer, so you can confirm the money arrived before closing.
Once the account is closed, you will receive a final statement showing the closure fee (if any) as a debit. Keep this statement for your records. If you dispute the fee later, you will need proof of what was charged.
Frequently Asked Questions
Can a bank charge me a closure fee if I did not know about it?
No. Banks must disclose all fees in writing in your account agreement before they can charge you. If the fee was not in your agreement, the bank should not have charged it. Call and ask them to reverse it, and file a complaint with the CFPB if they refuse.
What if I close my account and then the bank sends me a bill for the closure fee?
This can happen if your final balance was too small to cover the fee. The bank may send you an invoice or attempt to collect the debt. Do not ignore it. Call the bank and ask whether the fee was disclosed in your account agreement. If it was not, dispute it. If it was, you may owe the amount, but ask if they will waive it as a courtesy.
Do I have to pay a closure fee if I close my account because the bank made an error?
That depends on the bank's policy and the error. If the bank made a serious error — such as charging you unauthorized fees or failing to credit a deposit — call and explain the situation. Many banks will waive the closure fee in these cases. If they refuse, file a complaint with the CFPB.
Can I close my account online, or do I have to go to a branch?
Most banks allow you to close an account by phone or online. Some require you to visit a branch in person. Check your bank's website or call customer service to find out which method they use. The closure fee (if any) applies regardless of how you close the account.
What if I close my account before the holding period ends but the bank does not charge the fee?
If the bank does not charge you, do not contact them to ask them to. The fee is their policy, and if they choose not to enforce it, that is their decision. Keep your final statement as proof that no fee was charged, in case there is a dispute later.