Closing a savings account does not hurt your credit score
Closing a savings account on its own will not damage your credit. Banks do not report savings account activity to the three major credit bureaus — Equifax, Experian, and TransUnion — so closing one has no direct impact on the number that lenders see when they check your file.
Your credit score is built from borrowing and repayment history: credit cards you use, loans you take out, and whether you pay them on time. A savings account is straightforward a place to store money. It does not appear on your credit report at all, whether it is open or closed.
That said, the reason you are closing the account can matter. If you are closing it because you cannot pay a fee or because the bank is closing it due to unpaid overdrafts, that unpaid debt could affect your credit. But the closure itself is invisible to credit bureaus.
Key Takeaways
- Savings accounts do not report to credit bureaus, so closing one will not change your credit score.
- Banks may report unpaid overdraft fees or negative balances to collection agencies, which will damage your credit if they go unpaid.
- Closing a savings account does not affect your ability to borrow money in the future.
- Your credit history depends on credit products like cards and loans, not on savings accounts.
Why banks do not report savings accounts to credit bureaus
Credit bureaus track credit activity — money you borrowed and how you repaid it. A savings account involves no borrowing. You put your own money in, and the bank holds it. There is no loan, no credit line, and no repayment obligation, so there is nothing for a credit bureau to record.
Checking accounts work the same way. Closing a checking account has no impact on your credit score either. The only bank accounts that can affect credit are those tied to a credit product, like a credit-builder loan or a secured credit card account.
When closing a savings account could indirectly hurt your credit
The account closure itself will not damage your credit, but the circumstances around it might. If you close the account because you owe the bank money — unpaid overdraft fees, a negative balance, or a debt the bank is trying to collect — that unpaid debt can be reported to credit bureaus or sent to a collection agency.
Once a debt goes to a collection agency, it will appear on your credit report and lower your score. This happens whether the original account was a savings account, checking account, or any other product. The damage comes from the unpaid debt, not from closing the account.
If you have overdraft fees or a negative balance, contact the bank before closing the account. Many banks will waive one or two overdraft fees if you ask, especially if you have been a customer for a while. Paying what you owe before closure keeps the debt off your credit report.
What actually affects your credit score
Your credit score is built from five main categories: payment history (whether you pay bills on time), amounts owed (how much of your available credit you are using), length of credit history (how long you have had credit accounts), credit mix (having different types of credit like cards and loans), and new credit inquiries (recent applications for credit).
Savings accounts do not fit into any of these categories. Closing one does not change your payment history, does not reduce the amount you owe on any debt, does not shorten your credit history, and does not affect your credit mix. It is straightforward removing a place where you stored money.
If you are worried that closing a savings account will hurt your ability to borrow, that worry is unfounded. Lenders care about your credit score and your income, not about whether you have an active savings account.
How to close a savings account without creating problems
Before you close the account, check the balance and make sure it is zero or positive. If there are any fees owed or the account is overdrawn, pay them first. Call the bank or visit a branch and ask what the process is — some banks let you close accounts online, while others require a phone call or in-person visit.
Ask the bank to confirm in writing that the account is closed and that there are no outstanding balances or fees. Keep this confirmation. If the bank later tries to collect a debt from the closed account, you will have proof that you settled everything before closure.
If the bank is closing the account on its own (sometimes they do this for inactivity or policy violations), ask why and whether any fees or balances are owed. Get the reason in writing if possible.
What happens to your money when you close the account
When you close a savings account, the bank will return any money in it 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. The process usually takes a few business days.
Make sure you have somewhere for the money to go before you close the account. If you do not provide instructions, the bank may send a check to your address on file, which can take longer and carries the risk of the check being lost or stolen.
Frequently Asked Questions
Will closing a savings account lower my credit score?
No. Savings accounts do not report to credit bureaus, so closing one will not affect your credit score at all. Your credit is based on borrowing and repayment history, not on savings accounts.
What if the bank closed my account without asking?
Banks can close accounts for reasons like inactivity, repeated overdrafts, or suspected fraud. Contact the bank and ask why. If you owe fees or have a negative balance, pay it to avoid the debt being sent to a collection agency, which would hurt your credit.
Does having a savings account help my credit?
No. Savings accounts do not appear on your credit report at all, so having one does not help your score. Only credit products like credit cards, loans, and credit-builder accounts affect your credit.
Can I get a loan if I just closed my savings account?
Yes. Lenders do not check whether you have a savings account. They look at your credit score, income, and existing debts. Closing a savings account will not change any of those things.
What should I do with the money from my closed savings account?
You can move it to a savings account at another bank, deposit it into a checking account, or keep it in cash. Where you put the money does not affect your credit. Choose based on what makes sense for your situation and your financial goals.