Closing a savings account by itself does not lower your credit score
Savings accounts are not linked to your credit report. When you close one, the three major credit bureaus—Equifax, Experian, and TransUnion—do not receive notice and do not change your score. A savings account closing will not appear on your credit report at all, because savings accounts involve no credit. Your credit score measures only how you borrow and repay money, not how you save it.
This is different from closing a credit card or loan account, which does affect your score. A savings account is a deposit account where the bank holds your money. A credit card or loan is a credit account where you borrow money and promise to repay it. Only credit accounts move the needle on your score.
That said, the reason you close a savings account can matter indirectly. If closing the account forces you to miss a credit card payment or overdraw a checking account tied to a credit-building loan, that will hurt your score. But the closure itself is invisible to credit bureaus.
Key Takeaways
- Savings accounts do not report to credit bureaus, so closing one has no direct impact on your credit score.
- Credit scores track only credit accounts—credit cards, loans, and lines of credit—not deposit accounts like savings.
- Closing a savings account can indirectly harm your score only if it causes you to miss a payment on a credit account.
- If you are closing a savings account because you need money, make sure you do not miss any credit card or loan payments as a result.
Why savings accounts and credit cards are treated differently
Credit bureaus care about credit accounts because they show whether you can be trusted to borrow and repay. A savings account shows only that you can hold onto money—something lenders already assume you can do if you have a job. The bureaus have no reason to track savings accounts, and banks have no reason to report them.
Your credit report contains only accounts where you owe money or have owed money: credit cards, auto loans, mortgages, personal loans, student loans, and lines of credit. It also includes accounts you have closed, but only if they were credit accounts. A closed savings account will not appear anywhere on your report.
This means you can open and close savings accounts as often as you want without touching your credit score. You can have five savings accounts or zero. You can move money between them, withdraw everything, or let them sit dormant. None of it matters to your credit.
When closing a savings account can hurt your credit indirectly
The danger is not the closure itself but what happens because of it. If you close a savings account and that leaves you short on cash, you might miss a credit card payment or a loan payment. That missed payment will be reported to credit bureaus and will lower your score.
Similarly, if your savings account and checking account are linked and you close the savings account, you might lose overdraft protection. If you then overdraw your checking account, some banks report that to credit bureaus as a negative mark. Again, the harm comes from the overdraft, not the closure.
The other indirect risk is less common but real: if you close a savings account at a bank where you also have a credit product—like a credit card or a secured loan—the bank might interpret the closure as a sign you are moving your business elsewhere. Some banks use this as a reason to lower your credit limit or close your credit card. That action would lower your score, even though the savings account closure itself did not.
What actually appears on your credit report when you close accounts
When you close a credit account, it stays on your credit report for seven to ten years, depending on whether it was paid in full or had a balance. The report shows it as "closed by consumer" or "closed by creditor," and it continues to affect your score during that time. An old closed credit card in good standing can actually help your score by showing a long history of responsible borrowing.
When you close a savings account, nothing appears on your credit report. The bank may keep a record in its own system, but credit bureaus never see it. You can request your credit report from all three bureaus for free once per year at AnnualCreditReport.com, and you will see no mention of any savings accounts you have opened or closed.
If you are worried about what is on your credit report, focus on credit accounts only. Check for accounts you do not recognize, payments marked late, or collections accounts. Savings accounts are not part of the picture.
How to close a savings account without damaging your credit
Before you close a savings account, make sure you have another way to cover your bills and emergency expenses. If closing the account would leave you unable to pay a credit card bill or loan payment, wait until you have built up cash elsewhere or paid down some debt.
Contact your bank and ask about their closure process. Most banks let you close an account online, by phone, or in person. You will need to move any remaining money out first—either to another account or as a check or transfer. Some banks charge a fee if you close an account within a certain time frame (often 90 days to a year), so ask about that before you proceed.
If the savings account is linked to overdraft protection on a checking account, ask the bank to remove that link before you close the savings account. This prevents an accidental overdraft from being reported later.
After you close the account, keep any confirmation documents the bank sends you. If the bank later claims the account is still open or tries to charge you a fee, you will have proof of the closure date.
The difference between closing and leaving an account inactive
You do not have to close a savings account if you are not using it. You can straightforward leave it open with a zero balance or a small amount of money. Inactive accounts do not hurt your credit score any more than closed ones do, because neither appears on your credit report.
The advantage of leaving an account open is flexibility. If you need to deposit money again later, the account is ready. You also keep the account history, which can be useful if you ever need to prove how long you have banked with that institution.
The disadvantage is that some banks charge monthly fees on inactive accounts, or they may close the account themselves if it sits dormant for too long (usually one to three years). Check your account agreement to see what the bank's policy is. If there are no fees and no risk of automatic closure, leaving it open costs you nothing.
What to do if a bank closes your account without permission
Banks can close deposit accounts without your permission, though they usually send notice first. If a bank closes your savings account and you did not ask them to, it will not affect your credit score—again, because savings accounts do not report to credit bureaus.
However, you should find out why the bank closed it. Common reasons include inactivity, repeated overdrafts, suspected fraud, or violation of the account agreement. If the reason was fraud or a mistake, contact the bank and ask them to reopen it or explain what happened. If the reason was inactivity or low balance, you can straightforward move your money to another bank.
If the bank closed your account because of suspected fraud or illegal activity, they may report that to ChexSystems, a banking history database that other banks check before opening new accounts. This can make it harder to open accounts at other banks, but it is not the same as a credit report and does not affect your credit score.
Frequently Asked Questions
Will closing my savings account show up on my credit report?
No. Savings accounts do not report to credit bureaus at all, whether open or closed. Your credit report tracks only credit accounts like credit cards and loans. You can close a savings account without any impact on your credit report or score.
Can a bank lower my credit score if I close a savings account?
Not directly. However, if closing the account causes you to miss a credit card or loan payment, that missed payment will lower your score. Also, in rare cases, a bank might close a credit card if you close your savings account with them, and that closure could lower your score. Ask your bank before closing a savings account if they have any policies about this.
What happens to my credit if I leave a savings account inactive instead of closing it?
Nothing. Inactive savings accounts do not report to credit bureaus any more than closed ones do. Your credit score will not change. The only downside is that the bank may charge fees or close the account themselves after a long period of inactivity, so check your account agreement first.
Does closing a savings account affect my ability to get a loan?
Not because of the savings account closure itself. Lenders look at your credit score and credit history, not your savings accounts. However, if closing the account leaves you with no emergency fund and you then miss a credit card payment, that missed payment will hurt your ability to borrow. Keep enough cash on hand to cover your bills before you close any account.
What should I do before closing a savings account?
Make sure you have another way to pay your bills and handle emergencies. Move any remaining money to another account or request a check. Ask the bank about fees for early closure. If the account is linked to overdraft protection, ask the bank to remove that link first. Keep the closure confirmation for your records.