Closing a savings account does not hurt your credit score
Closing a savings account by itself has no direct effect on your credit score. Credit bureaus — the companies that track your financial history and calculate your score — do not monitor savings accounts at all. They track only credit activity: loans you have taken, credit cards you use, and whether you pay on time. A savings account is straightforward a place to store money, not a credit product.
However, 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 be reported to credit bureaus and damage your score. The account closure itself is not the problem — the unpaid balance is.
Key Takeaways
- Closing a savings account does not appear on your credit report or change your credit score because savings accounts are not credit products.
- An unpaid overdraft or fee attached to the account can be reported to credit bureaus and lower your score, even after you close the account.
- If you owe money on the account, pay it before closing to prevent the debt from being sent to a collection agency.
- Closing a credit card or loan account can affect your score, but closing a savings account cannot.
Why savings accounts do not show up on credit reports
Credit reports track only credit — money you borrowed and how you repaid it. A savings account is money you own, not money you borrowed. The three major credit bureaus (Equifax, Experian, and TransUnion) receive reports only from lenders, credit card companies, and collection agencies. Your bank does not send them information about your savings account balance, deposits, or withdrawals.
This is why you can have a large savings account balance and still have a low credit score, or no credit score at all. The two are separate financial pictures. Your savings account shows your ability to save money. Your credit score shows your history of borrowing and repaying.
When an unpaid balance can damage your score
If your savings account has a negative balance — meaning you owe the bank money — that debt can hurt your score. This usually happens when overdraft fees pile up or when the bank charges a monthly maintenance fee that you cannot cover. If you close the account without paying what you owe, the bank may send the debt to a collection agency.
Once a debt goes to a collection agency, it appears on your credit report and lowers your score. This can stay on your report for up to seven years. The damage happens not because you closed the account, but because you left an unpaid debt behind.
To avoid this, check your account balance before closing. If you owe anything, pay it in full. Ask the bank for written confirmation that the account is closed with a zero balance. Keep this confirmation in case the debt is reported later.
The difference between closing a savings account and closing a credit card
Closing a credit card can affect your credit score, but closing a savings account cannot. This is an important distinction. A credit card is a credit product — the bank lends you money each month, and your payment history is reported to credit bureaus. Closing a credit card can lower your score because it reduces your total available credit and may shorten your average account age.
A savings account is not a credit product. It has no effect on your credit mix, your available credit, or your payment history. You can close as many savings accounts as you want without any impact on your score.
What to do before closing a savings account
Before you close a savings account, take these steps to protect yourself. First, check your balance online or call the bank to confirm you do not owe anything. If there are any pending fees or charges, wait for them to post so you know the true balance.
Second, transfer any remaining money to another account or request a check. Some banks charge a fee to close an account, so ask about this before you proceed. Third, set up any automatic deposits or payments that use this account to come from a different account instead.
Finally, ask the bank for written confirmation that the account is closed. Keep this document. If the bank later reports an unpaid balance, you will have proof that you closed the account in good standing.
How to check if a closed account is reported to credit bureaus
You can check your credit report for free once per year through AnnualCreditReport.com, which is run by the three major credit bureaus. Pull your report and look for any mention of the savings account. If it appears at all, it should show a zero balance and a status of "closed by consumer" or similar language.
If you see a negative balance or a collection account related to the savings account, dispute it when ready. You can file a dispute directly with the credit bureau through their website. Explain that you closed the account and either paid the balance or never owed anything. The bureau has 30 days to investigate.
Frequently Asked Questions
Will closing a savings account show up on my credit report?
No. Savings accounts do not appear on credit reports at all, whether open or closed. Only credit products like loans and credit cards are reported to credit bureaus. You can close a savings account without any impact on your credit history.
What if I have overdraft fees I cannot pay?
Contact your bank and ask if they will waive the fees, especially if this is your first time. Many banks will remove one or two overdraft fees as a courtesy. If they will not, pay what you can before closing the account. An unpaid overdraft can be sent to a collection agency and reported to credit bureaus.
Does closing a savings account affect my ability to open a new bank account?
Closing a savings account does not affect your ability to open a new one. Banks use a system called ChexSystems to check for unpaid overdrafts and fraud, not credit scores. If you close the account with a zero balance, it will not appear in ChexSystems either.
Can I close a savings account online?
Some banks allow you to close accounts online through their website or app. Others require you to call or visit a branch in person. Check your bank's website or call customer service to find out how to close your specific account. Ask for written confirmation once it is closed.
What happens to my debit card if I close my savings account?
If your debit card is linked to the savings account you are closing, the card will stop working once the account closes. If you have a checking account at the same bank, you can ask the bank to relink your debit card to that account instead. Otherwise, you will need to request a new debit card for a different account.