Most banks do not charge you to close a savings account
Closing a savings account is free at the vast majority of banks. You will not pay a fee to the bank for closing the account itself, and you will not lose money in the process. The bank returns whatever balance remains in your account to you — usually by check, transfer to another account, or cash if you close in person.
Some banks do charge what they call a "early closure fee" or "account closure fee," but this is uncommon and usually only happens if you close the account within a very short window after opening it — often 30 to 90 days. Even then, the fee is typically small, between $5 and $25. You should find this information in the account's terms and conditions, which the bank gave you when you opened it.
The real cost of closing a savings account is not a fee — it is the interest you stop earning once the account closes. If you move your money to a different bank or stop saving altogether, you lose whatever interest rate that account was paying you.
Key Takeaways
- Most banks charge nothing to close a savings account, and you receive your full balance back.
- A small minority of banks charge an early closure fee if you close within 30 to 90 days of opening, typically $5 to $25.
- Check your account's terms and conditions or call your bank to confirm whether a closure fee applies to your specific account.
- The main cost is the interest you stop earning once the account closes, not a fee charged by the bank.
When banks do charge a closure fee
Banks that charge to close an account almost always do so only if you close very soon after opening it. This fee exists because banks lose money on accounts that open and close quickly — they spend resources setting up the account and processing the closure without earning back their costs through interest or other activity.
The timeframe varies by bank. Some charge a fee if you close within 30 days. Others allow 60 or 90 days before the fee kicks in. A few banks charge a closure fee regardless of how long you have held the account, but this is rare. You will find the specific rule in your account agreement — the document you signed or agreed to electronically when you opened the account.
If you are unsure whether your account has a closure fee, call your bank's customer service line or visit a branch in person. They can tell you when ready whether a fee applies and how much it would be. There is no penalty for asking.
How to get your money when you close
When you close a savings account, the bank must return your balance to you. You have several options for how to receive it. The most common is a transfer to another bank account — you provide the account number and routing number of the account where you want the money to go, and the bank moves it electronically. This usually takes one to three business days.
You can also request a check mailed to your address. This takes longer — typically five to ten business days — because the check has to be printed, mailed, and then deposited or cashed by you. Some banks will issue a check on the spot if you close the account in person at a branch.
A third option, available at banks with physical branches, is to withdraw the balance in cash when you close the account. This is the fastest way to access your money, but it only works if you close in person.
What happens to pending transactions and automatic payments
Before you close a savings account, check whether you have set up any automatic transfers or payments from that account. If you have automatic deposits going into the account — such as a paycheck direct deposit or a transfer from another account — those will stop once the account closes. You need to update those arrangements before closing, or your money will go nowhere.
Similarly, if you have automatic payments or transfers going out of the account, they will fail once the account is closed. This can result in late fees or service interruptions if you do not redirect them first. For example, if you have an automatic transfer set up to pay a credit card bill from this savings account, that payment will not go through after you close the account.
The safest approach is to wait until all pending transactions have cleared, then cancel any automatic arrangements before you request the closure. Your bank can show you a list of any automatic activity linked to the account.
Interest you lose by closing early
A savings account earns interest — a small amount of money the bank pays you for letting them use your money. The interest rate varies widely depending on the bank and the type of account. Some savings accounts earn very little interest, while high-yield savings accounts at online banks may earn significantly more.
When you close the account, you stop earning that interest. If you close a high-yield account and move the money to a regular savings account at a traditional bank, you will earn less interest going forward. This is not a fee the bank charges you, but it is a real cost — you are giving up future earnings.
Before you close an account, think about whether you are moving the money somewhere that will earn more interest, the same interest, or less. If you are moving to a lower-rate account, you may want to reconsider or move the money to a higher-yield option instead.
Closing a joint account
If the savings account is held jointly with another person, both account holders usually have to agree to close it. Some banks require both people to be present in person to close the account. Others allow one person to request closure by phone or online, but the bank will notify the other account holder and may give them time to object.
Before you close a joint account, make sure the other account holder knows and agrees. If you close without their knowledge, they may lose access to money they were counting on or miss important account activity. Check your account agreement or call your bank to understand the specific rules for your joint account.
Frequently Asked Questions
Can I reopen a savings account after I close it?
Yes, you can open a new savings account at any time, even at the same bank. However, if you closed the account due to an early closure fee, opening and closing another account quickly will likely trigger the same fee again. If you are unhappy with the account, consider switching to a different type of account at the same bank instead of closing entirely.
Will closing a 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 — credit cards, loans, and lines of credit — show up on your credit report. Closing a savings account is purely a banking transaction.
What if I have a negative balance when I try to close?
If your account is overdrawn — meaning you owe the bank money — you cannot close it until the balance is paid. You must deposit enough money to bring the account to zero or positive before the bank will process the closure. Some banks will waive overdraft fees if you are closing the account, but you should ask first.
How long does it take to close a savings account?
If you close in person at a branch, the account can close when ready and you can receive your balance in cash the same day. If you close by phone or online, the process typically takes one to five business days. The bank will confirm the closure in writing, usually by email or mail.
Do I need to close the account, or can I just stop using it?
You can stop using an account without formally closing it, but this is not recommended. Inactive accounts may be subject to inactivity fees, and the bank may eventually close it themselves. It is cleaner to formally close the account so you have a clear record and avoid surprise fees.