Most banks do not charge to close an account, but some do — and the fee varies by bank and account type
The short answer: it depends on your bank and how recently you opened the account. Most major banks (Chase, Bank of America, Wells Fargo, Citibank) do not charge a fee to close a checking or savings account. However, some banks and credit unions do charge what they call an "early closure fee" or "account closure fee," typically ranging from $25 to $100 if you close within a set period — often 90 days to six months after opening. A few banks charge a flat fee to close any account, regardless of how long you have held it.
The fee exists because banks lose money on new accounts that close quickly: they spend on marketing, account setup, and fraud checks but never recoup those costs through monthly fees or interest on deposits. Charging a closure fee discourages this behavior. But the practice is not universal, and you can avoid it by knowing your bank's policy before you open an account or by switching banks strategically.
Key Takeaways
- Most national banks do not charge to close an account, but regional banks and some credit unions may charge $25 to $100 if you close within 90 days to six months.
- Your bank's account agreement or fee schedule lists the closure fee if one exists — call customer service or check online before opening an account.
- If you are charged a fee you did not know about, you can dispute it by contacting your bank in writing and referencing the disclosure they provided at account opening.
- Closing an account does not hurt your credit score, but leaving a negative balance (overdraft) unpaid will be reported to ChexSystems and affect your ability to open accounts elsewhere.
Where to find your bank's closure fee policy
Your bank must disclose the closure fee in writing before you open the account. This information appears in one of three places: the account agreement (sometimes called the "terms and conditions"), the fee schedule, or a separate disclosure document. If you already have the account, log into your online banking portal and look for "account agreement," "fee schedule," or "disclosures." You can also call customer service and ask directly: "Is there a fee to close this account, and if so, how long do I have to keep it open to avoid the fee?"
If the bank charged you a fee and you were not told about it beforehand, you have grounds to dispute it. Write to the bank's customer service department (email or certified mail) and reference the date you opened the account, the date you closed it, and the fee amount. Ask them to provide the disclosure they gave you at account opening. If they cannot produce it, they may reverse the charge.
How long you typically have to avoid the fee
If your bank charges a closure fee, the waiting period is usually between 90 days and six months. Some banks charge the fee only if you close within 90 days; others extend it to 180 days or even one year. A few banks charge a flat fee no matter when you close. The period starts from the day you open the account, not from the day you make your first deposit.
If you are unhappy with your bank and want to leave before the waiting period ends, weigh the fee against the cost of staying. If the account has a monthly maintenance fee of $12 and the closure fee is $35, you break even after three months. If you can wait, waiting is cheaper. If you cannot wait, pay the fee and move on — it is a one-time cost, not an ongoing one.
Banks that commonly charge closure fees
Closure fees are more common at regional and community banks than at national chains. Some credit unions also charge them. Examples include certain branches of U.S. Bank, Regions Bank, and some local credit unions, though policies change and vary by location. Online banks (Ally, Charles Schwab, Discover) typically do not charge closure fees because they have lower overhead and rely on customer retention through competitive rates rather than exit fees.
If you are opening an account at a bank you are unfamiliar with, ask about the closure fee before you sign up. It takes 30 seconds and can save you money. If the bank refuses to disclose the fee or says it does not have one but later charges you, document the conversation and file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.
What happens if you close with a negative balance
A closure fee is different from an overdraft fee or a negative balance. If you close an account while you owe the bank money (because of overdrafts or unpaid fees), the bank will pursue collection. They may freeze your other accounts at the same bank, report the debt to a collection agency, or report it to ChexSystems, a banking history database that other banks use to decide whether to open accounts for you.
Before you close an account, make sure the balance is zero or positive. If you have overdrafts or pending fees, pay them first. If the bank has already charged you a fee you dispute, do not close the account with a negative balance — pay what you owe, then close it, then dispute the fee separately in writing.
How to avoid closure fees when switching banks
The easiest way to avoid a closure fee is to choose a bank without one from the start. Before opening an account, ask the bank directly or read the fee schedule online. If you are already locked into an account with a fee, you have three options: wait out the period, pay the fee and leave, or contact the bank and ask them to waive it.
Some banks will waive the closure fee if you ask, especially if you have been a customer for a while or if you maintain a high balance. It never hurts to call and explain your situation: "I need to close this account because I am moving / switching to another bank. Is there any way you can waive the closure fee?" Banks sometimes say yes, particularly if retaining you is not worth the effort of collecting $35.
If you are opening a new account at a different bank, do not close the old one immediately. Wait until you have confirmed that your direct deposits, automatic payments, and transfers are working at the new bank. Then close the old account. This prevents you from accidentally triggering overdrafts or missing payments during the transition.
Closure fees versus other account costs
A closure fee is separate from monthly maintenance fees, overdraft fees, and inactivity fees. A monthly maintenance fee is charged every month you hold the account (usually $5 to $15). An overdraft fee is charged when you spend more than your balance (usually $25 to $35 per overdraft). An inactivity fee is charged if you do not use the account for a set period, usually 12 months or more. A closure fee is charged only when you close the account.
If your bank charges a monthly maintenance fee, closing the account actually saves you money in the long run. If your bank charges an inactivity fee and you are not using the account, closing it stops the bleeding. But if your bank charges a closure fee and you are still using the account, the fee is a sunk cost — you pay it only once, when you leave.
Frequently Asked Questions
Can a bank charge me to close an account I just opened?
Yes, if the bank's fee schedule includes an early closure fee. Most banks charge this fee only if you close within 90 days to six months, so if you opened the account last week and want to close it today, you will likely be charged. Check your account agreement to confirm the waiting period.
What if I did not know about the closure fee when I opened the account?
The bank was required to disclose it in writing before you opened the account. If you did not receive the disclosure, write to the bank and ask them to produce it. If they cannot, request a refund of the fee. You can also file a complaint with the CFPB if the bank refuses to cooperate.
Does closing an account hurt my credit score?
No. Closing a bank account does not appear on your credit report and does not affect your credit score. However, if you close the account with a negative balance and the bank reports it to a collection agency, that will hurt your score.
Can I dispute a closure fee after I have already paid it?
Yes. Contact your bank in writing within 30 to 60 days of the charge and explain that you were not aware of the fee or that it was not properly disclosed. Include copies of any statements or communications. The bank may reverse the charge, especially if they cannot produce the original disclosure.
What if my bank waives the closure fee but I still want to leave?
If the bank offers to waive the fee, take it. There is no downside to accepting. If they refuse and you want to leave anyway, pay the fee and move on. One-time fees are not worth staying at a bank you are unhappy with.