You cannot convert a savings account into a checking account—you have to close one and open the other
Your bank treats these as separate accounts with different rules, fees, and features. A savings account is built for holding money and earning interest; a checking account is built for spending and paying bills. Your bank's system does not allow you to flip a switch and change one into the other.
What you can do instead: open a new checking account and transfer your savings balance to it, then close the savings account. This takes about 15 minutes if you do it in person or online, and your money moves the same day. The process is straightforward, but there are a few things to watch for—mainly around timing and what happens to any interest you have earned.
Key Takeaways
- You must open a new checking account separately; your bank cannot convert a savings account into a checking account.
- Transfer your savings balance to the new checking account before closing the savings account, so you do not lose the money.
- Check whether your savings account has a minimum balance requirement or early closure penalty before you close it.
- Interest earned on your savings account will be paid out when you close it, usually within one or two business days.
- If you have automatic transfers or direct deposits linked to the savings account, update those to point to your checking account first.
How to open a checking account at the same bank
Log into your online banking portal or call your bank's customer service line and ask to open a new checking account. You will need to choose a checking account type (many banks offer more than one, with different fee structures), decide whether you want a debit card, and confirm your mailing address. The account usually opens within minutes if you do it online, or within the same business day if you call.
If you are opening the account online, you will receive a confirmation email with your new account number. Write this down or take a screenshot—you will need it to transfer money from your savings account. If you opened it by phone, ask the representative for the new account number before you hang up.
You do not need to visit a branch unless you want a debit card issued in person or have questions about which account type fits your spending habits. Most banks mail debit cards within 7 to 10 business days.
Transfer your savings balance to the checking account
Once your checking account is open, move your money over. Log into online banking, find the "Transfer Funds" or "Move Money" option, and select your savings account as the source and your new checking account as the destination. Enter the amount you want to transfer—usually this is your entire savings balance, but you can transfer in stages if you prefer.
The transfer completes the same business day if you initiate it before your bank's cutoff time (usually 2 or 3 p.m.). If you transfer after the cutoff or on a weekend, it may take until the next business day. Check your checking account to confirm the money arrived before you close the savings account.
If you prefer to transfer in person, bring your ID to a branch, tell the teller you want to move money from savings to checking, and they will do it on the spot. This is the safest route if you are moving a large amount and want when ready confirmation.
Check for fees or penalties before closing
Before you close your savings account, call your bank or log into your account settings and look for any of these:
- Minimum balance requirement: Some savings accounts charge a monthly fee if your balance drops below a certain amount (often $25 or $100). If your account is near that threshold, closing it avoids future fees.
- Early closure penalty: A few banks charge a fee if you close a savings account within a set period—usually 90 days to six months of opening it. This is less common, but it is worth asking about.
- Dormancy fees: If your savings account has been inactive for a long time, some banks charge a monthly fee. Closing it stops those charges.
Your bank statement or account agreement will list these terms. If you cannot find them, call customer service and ask directly: "Are there any fees or penalties for closing this savings account right now?" Write down the answer and the name of the person who told you.
Close the savings account
Once your balance is zero or nearly zero (transferred to checking), you can close the account. You have two options: call your bank's customer service line and ask them to close it, or visit a branch in person. Both take about five minutes.
When you call or visit, have your savings account number ready and confirm that your balance has been transferred. The representative will process the closure and send you a confirmation—usually by email or mail within a few business days. Keep this confirmation in case you need proof later that the account is closed.
If there is a small remaining balance (a few cents from rounding), the bank will either transfer it to your checking account or mail you a check. Ask which one they will do before you hang up.
What happens to interest you have earned
Any interest your savings account has earned will be paid out when you close it. This usually happens within one or two business days and appears as a deposit in your checking account (or the account you specify). The amount depends on your savings balance, the interest rate your bank paid, and how long you held the account.
You will receive a 1099-INT form from your bank if the interest totals $10 or more in a calendar year. This is for tax purposes—you will report this interest as income on your tax return. Keep the form with your tax documents.
If you close the account mid-month, you will still receive interest for the days you held the account. There is no penalty for closing early in terms of losing interest you have already earned.
Update automatic transfers and direct deposits
Before you close your savings account, check whether any automatic transfers or direct deposits are linked to it. Common examples: a paycheck deposited directly to savings, an automatic transfer from checking to savings each month, or a bill payment set up to pull from savings.
Log into your online banking or payroll system and update these to point to your checking account instead. If you have a direct deposit set up through your employer, you will need to submit a new direct deposit form with your checking account number. This usually takes one or two pay cycles to take effect, so do it as soon as you open the checking account.
If you forget to update these before closing the savings account, the transfers will fail and you may face overdraft fees or missed payments. Call your bank when ready if this happens—they can sometimes reprocess the transaction to your checking account.
Frequently Asked Questions
Can I keep both accounts open instead of closing the savings account?
Yes. Many people keep a savings account for emergency funds and a checking account for daily spending. There is no rule against having both. You only need to close the savings account if you no longer want it or want to avoid monthly fees.
What if I have a joint savings account—can I convert just my half to checking?
No. You cannot split a joint account. You and the other account holder would both need to agree to close it. If only one of you wants a checking account, that person can open their own separate checking account and transfer their share of the balance to it, but the original joint savings account remains open until both owners agree to close it.
How long does it take to close a savings account?
The closure itself is when ready—the representative processes it when ready. However, you may not see it removed from your online banking for one to three business days. If you need proof the account is closed for a specific reason, ask for a written confirmation when you close it.
Will closing my savings account hurt my credit score?
No. Closing a bank account does not affect your credit score. Credit scores are based on borrowing and repayment history, not on the accounts you hold at your bank. You can close as many savings or checking accounts as you want without any impact on your credit.
What if my savings account has a negative balance?
You cannot close an account with a negative balance. You must deposit money to bring it to zero first, then close it. If you owe the bank money due to overdraft fees or other charges, contact customer service to discuss a payment plan before attempting to close the account.