What you need to do to close a savings account
To close a savings account, contact your bank or credit union, withdraw or transfer any remaining balance, and confirm the account is closed. Most banks let you close an account by phone, in person, or online. The process usually takes a few minutes if you have no outstanding holds or pending transactions, though some banks may take a few business days to process the closure.
Before you close, check your account for any automatic deposits or payments tied to it. If your paycheck or benefits go to this account, you'll need to update that information with your employer or the paying agency first. The same applies to any bills you pay from this account — switch those to another account before closing.
Key Takeaways
- Contact your bank directly by phone, online, or in person to request closure; you do not need a reason to close an account.
- Withdraw or transfer your full balance before closing, and confirm there are no pending transactions or holds on the account.
- Update any automatic deposits (paycheck, benefits, Social Security) and automatic payments (bills, subscriptions) to a different account first.
- Ask the bank for written confirmation of closure and keep it for your records in case disputes arise later.
- If the account has a negative balance, you must pay it before the bank will close the account.
Gather information before you call or visit
Have your account number and ID ready when you contact the bank. If you're closing the account by phone, the bank will verify your identity by asking for your Social Security number, date of birth, or answers to security questions you set up when you opened the account.
Make a list of any automatic transactions connected to the account. Check your recent statements for recurring deposits (paycheck, government benefits, pension payments) and recurring charges (insurance premiums, utility bills, loan payments, subscription services). You'll need to redirect these before closing, or they will fail and may trigger overdraft fees or late payment penalties.
Withdraw or transfer your balance
You can move your money in several ways. If you have another account at the same bank, you can transfer the balance online or ask a teller to move it for you. If you're moving to a different bank, you can request an electronic transfer, withdraw cash, or have the bank mail you a check.
Electronic transfers between banks typically take one to three business days. If you need the money faster, withdrawing cash or requesting a cashier's check (which clears immediately at most banks) are quicker options. Ask the bank whether there are any fees for closing the account or for the transfer method you choose — most banks do not charge to close a savings account, but some may charge for certain withdrawal methods.
Handle any negative balance or outstanding holds
If your account is overdrawn or has a negative balance, the bank will not close it until you pay the amount owed. This can happen if fees were charged after your last deposit or if a check you wrote bounced. Contact the bank to find out the exact amount and pay it before requesting closure.
Some banks also place holds on accounts if there are pending transactions, fraud investigations, or unpaid fees. Ask the bank representative whether any holds are on your account and how long they will remain. You may need to wait for the hold to clear before closing, or the bank may close the account and send you a check for the remaining balance once the hold is resolved.
Confirm the closure in writing
After the bank processes your closure request, ask for written confirmation. This confirmation should include the account number, the date the account was closed, and the final balance. Keep this document for your records — it protects you if the bank later claims the account is still open or if you need proof of closure for tax or legal purposes.
If you closed the account in person, ask the teller to print a confirmation receipt. If you closed it by phone or online, request that the bank email or mail you a written confirmation. Some banks send this automatically within a few business days; others only provide it if you ask.
Update your direct deposits and automatic payments
This step is critical and should happen before or immediately after closing. Contact your employer's payroll department, your state's benefits office, or any other organization that deposits money into the account and provide them with your new account number. Do the same for any company that withdraws money from the account automatically.
If you miss updating a direct deposit, the payment may be returned to the sender, and you may face a delay in receiving your money. If you miss updating an automatic payment, the charge will fail and may result in a late fee or service interruption. Check your new account after a few days to confirm that deposits and payments are going through correctly.
What to do if the bank won't close your account
Banks rarely refuse to close an account, but it can happen if there is an outstanding balance, an active fraud investigation, or a legal hold placed by a court or creditor. If the bank refuses to close your account, ask for the specific reason in writing. If the reason is a negative balance, pay it and request closure again. If the reason is a hold or investigation, ask how long it will take to resolve and when you can close the account.
If you believe the bank is wrongfully refusing to close your account, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator. The CFPB accepts complaints online at consumerfinance.gov. Include details about when you requested closure, what the bank told you, and any documentation you have.
Frequently Asked Questions
Can I close my savings account if I have a negative balance?
No. You must pay the negative balance first. Contact the bank to find out the exact amount owed, pay it, and then request closure. Once the balance is paid, the bank will close the account.
How long does it take for a savings account to close?
Closure is usually immediate if you close in person or online, though the bank may take one to three business days to process it. If there are pending transactions or holds, closure may take longer. Ask the bank for a specific timeline when you request closure.
Will closing my 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. Only credit accounts like credit cards, loans, and lines of credit impact your credit.
What happens to automatic payments if I close my account before updating them?
Automatic payments will fail, and the company trying to charge you may assess a late fee or suspend your service. Update all automatic payments to a new account before closing, or contact each company to pause payments until you provide new account information.
Do I need a reason to close my savings account?
No. Banks cannot require you to give a reason for closing an account. You can close it at any time for any reason or no reason at all.