Closing a savings account does not affect your credit score
Closing a savings account has no impact on your credit at all. Credit scores are built from your history of borrowing and repaying money — credit cards, loans, mortgages, and similar products where a lender extends you credit. A savings account is money you deposit and withdraw from your own account. The bank is not lending to you, so the account never appears on your credit report.
This is different from closing a credit card or paying off a loan, both of which can change your score. But a savings account closing is financially neutral to your credit history.
Key Takeaways
- Savings accounts do not appear on your credit report because they are not credit products — the bank is holding your money, not lending it to you.
- Closing a savings account will not lower your credit score, raise it, or change it in any way.
- The only account closures that affect credit are credit cards, loans, and lines of credit where you borrowed money.
- If you are worried about credit impact when closing an account, check whether it is a credit product by asking your bank or reviewing your credit report.
Why savings accounts never show up on credit reports
Credit reports track credit activity — the money lenders have given you and how reliably you repaid it. A savings account is the opposite: it is money you own and control. The bank is a custodian, not a lender. Because no credit was extended, there is nothing for the credit bureaus to record.
The same is true for checking accounts, money market accounts, and certificates of deposit (CDs). None of these appear on your credit report because none of them involve borrowing. You can open and close them without any effect on your credit score.
What account closures actually do affect your credit
Closing a credit card can lower your score, though the effect is usually temporary. Credit cards affect your score in two ways: your payment history (whether you pay on time) and your credit utilization (how much of your available credit you are using). When you close a card, you lose that available credit, which can raise your utilization percentage on remaining cards and lower your score.
Closing a loan — a car loan, personal loan, or mortgage — also affects your score, but the impact depends on the situation. If you pay off the loan in full, your score may dip slightly because you are removing an active credit account, but this is usually a small, temporary drop. If you close the account early by paying it off, you also lose the benefit of that on-time payment history going forward.
A line of credit (like a home equity line of credit or HELOC) works the same way as a credit card: closing it reduces your available credit and can raise your utilization ratio.
How to tell if an account is a credit product
If you are unsure whether closing an account will affect your credit, ask yourself: did the bank lend me money, or am I storing my own money there? If you borrowed money and are paying it back over time, it is a credit product. If you deposited your own money and can withdraw it anytime, it is not.
You can also check your credit report directly. Visit annualcreditreport.com, the official site where you can view your report from Equifax, Experian, and TransUnion for free once per year. If an account appears there, it is a credit product. If it does not, closing it will not touch your score.
Other reasons to think twice before closing a savings account
Even though closing a savings account will not hurt your credit, there are other practical reasons to consider before you do. If you close your only savings account, you lose a place to keep emergency money separate from your checking account. Many people find it helpful to keep savings in a different account so they are less tempted to spend it.
Some banks also charge a fee for closing an account if you close it within a certain time frame (often 90 days to a year after opening). Check your account agreement or call the bank to ask whether a fee applies before you close.
If you are closing the account because you are unhappy with the interest rate or fees, consider moving the money to a different savings account instead of closing it entirely. You keep the option to save, and you may earn more on your balance.
What happens to your money when you close the account
When you close a savings account, the bank will return your balance to you. You can ask them to transfer it to another account at the same bank, send you a check, or deposit it into an account at a different bank. Make sure you know where your money is going before you close the account.
If you have a very small balance and forget about the account, some banks will eventually close it for inactivity and may charge fees. If you think you have an old account you forgot about, contact the bank to confirm the balance and close it on your own terms rather than letting them do it.
Frequently Asked Questions
Will closing a savings account show up on my credit report?
No. Savings accounts never appear on credit reports because they are not credit products. Only accounts where you borrowed money — credit cards, loans, and lines of credit — show up on your report.
Can closing a savings account lower my credit score?
No. Closing a savings account has zero impact on your credit score. Your score is based on borrowing and repayment history, not on deposit accounts you own.
What if I close a savings account and open a new one at the same bank?
This also has no credit impact. Opening and closing deposit accounts does not affect your credit in any way. You can move between accounts freely without worrying about your score.
Does the bank report account closures to credit bureaus?
Banks do not report savings account closures to credit bureaus because savings accounts are never reported to them in the first place. Only credit products are reported.
If I am worried about my credit, should I keep my savings account open?
Keeping a savings account open will not help your credit score because it does not appear on your credit report. Keep it open or close it based on whether you need the account, not based on credit concerns.