Most banks do not charge a fee to close an account, but some do—and the fee depends on the account type and how long you have held it

The majority of major banks (Chase, Bank of America, Wells Fargo, Citibank) do not charge you to close a checking or savings account. You can walk in, call, or go online and close it at no cost. However, some banks and credit unions do charge a closing fee, typically between $25 and $100. The fee is most common with savings accounts, money market accounts, or accounts you have held for less than a certain period—often six months to a year.

Before you close an account, check your account agreement or call your bank's customer service line to ask directly. The fee, if one exists, will be deducted from your remaining balance. If your account is overdrawn, the bank may refuse to close it until you bring the balance to zero.

Key Takeaways

  • Most major banks charge nothing to close a checking or savings account, but some credit unions and smaller banks do charge between $25 and $100.
  • Closing fees are most common on savings accounts, money market accounts, or accounts open for less than six months to a year.
  • Your account agreement or a call to customer service will tell you whether your specific account has a closing fee.
  • The bank deducts any closing fee from your remaining balance before returning the funds to you.
  • An overdrawn account cannot be closed until the balance is brought to zero or above.

Which account types are most likely to have closing fees

Savings accounts and money market accounts carry closing fees more often than checking accounts do. This is because banks make less money from savings accounts—the interest rate they pay you is low, and they earn less from lending out your deposits. A closing fee compensates them for the cost of maintaining an account that generated minimal profit.

Certificates of Deposit (CDs) are different. If you close a CD before the maturity date, you will pay an early withdrawal penalty, not a closing fee. This penalty can be substantial—sometimes three to six months of interest, depending on the CD term. Closing the CD at maturity (when the term ends) carries no penalty.

Checking accounts rarely have closing fees, even at banks that charge them on savings accounts. Some banks waive closing fees on savings accounts if you have held the account for a certain length of time, often one to two years.

How to learn about your bank charges a closing fee

The fastest way is to call your bank's customer service number on the back of your debit card or on their website. Tell them you want to close your account and ask if there is a fee. Write down the name of the representative and the date you called, in case there is a dispute later.

You can also check your account agreement, which is usually available online under "Account Terms" or "Disclosures." Search the document for "closing fee," "early termination fee," or "account closure." If you cannot find it online, ask the bank to email or mail you a copy.

Some banks post their fee schedules publicly on their website. Look for a link labeled "Fees," "Pricing," or "Account Fees." The fee schedule will list what you pay for overdrafts, wire transfers, and account closure.

What happens to the closing fee when you close your account

The bank deducts the closing fee from your remaining balance. If you have $500 in the account and the closing fee is $25, the bank sends you $475. If your balance is less than the fee—say you have $10 and the fee is $25—the account becomes overdrawn by $15. The bank will not close the account until you pay the overdraft.

The fee appears on your final statement as a debit or charge. Keep this statement for your records, especially if you are closing the account because you are switching banks or disputing a fee.

Early closure fees versus closing fees

Some banks distinguish between an early closure fee and a standard closing fee. An early closure fee applies if you close the account within a set period—often 90 days to one year after opening it. A standard closing fee, if one exists, applies no matter when you close.

For example, a bank might charge $50 if you close within six months, but nothing if you close after six months. Always ask your bank whether the fee depends on how long you have held the account. If you are closing soon after opening, you may be able to avoid the fee by waiting a few months.

Alternatives if your bank charges a closing fee

If your bank charges $50 or more to close an account, consider whether it makes sense to wait. If you opened the account less than a year ago and the fee drops to zero after 12 months, closing in a few weeks might cost you less than closing now. Do the math: if the fee is $50 and you would earn $2 in interest over the next month, closing now costs you $50 out of pocket, while waiting costs you $2 in foregone interest plus the fee.

Another option is to ask the bank to waive the fee. Banks sometimes waive closing fees for customers with a long history or multiple accounts. It does not hurt to ask, especially if you have been a customer for years.

If you are closing because the bank has poor service or high fees overall, switching to a bank with no closing fees (most major banks) is usually the better long-term choice. The one-time fee is often worth it to move to an institution with lower overall costs.

Frequently Asked Questions

Can I close my account online, or do I have to go to a branch?

Most banks allow you to close a checking account online through their website or app. Savings accounts and other account types may require a phone call or in-person visit. Check your bank's website or call to confirm. If you close online, the bank will send you instructions for transferring any remaining balance.

What if I have a negative balance when I try to close my account?

The bank will not close an overdrawn account. You must bring the balance to zero or above first. Once you deposit enough to cover the overdraft, you can then close the account. Any closing fee will be deducted from your deposit.

Do I have to pay a closing fee if I move my money to another bank?

The closing fee is separate from transferring your money. You pay it when you close the account, regardless of where your money goes next. Moving your balance to another bank does not waive the fee.

Will closing an account hurt my credit score?

Closing a bank account does not affect your credit score. Credit scores are based on borrowing and repayment history, not on bank accounts. Closing a credit card account can affect your score, but closing a checking or savings account will not.

What if the bank charged me a closing fee I did not know about?

Contact the bank and ask them to explain the fee. If you were not told about it before closing, ask whether they can refund it. Banks sometimes refund unexpected fees as a courtesy, especially if you were a long-term customer. Request the refund in writing and keep a copy for your records.