Banks can charge you to close an account, but most do not
Most banks do not charge a fee to close your account. However, some banks do charge a closure fee — usually between $25 and $100 — and a few charge fees if you close the account within a certain time period after opening it. The fee depends on the bank and the type of account. Before you close, check your account agreement or call the bank to ask whether a fee applies to you.
Banks are allowed to charge closure fees because closing an account costs them money in administrative work. They have to process your request, stop automatic payments, and handle any remaining balance. But because most banks do not charge, you have options if your bank does.
Key Takeaways
- Most banks do not charge to close an account, but some charge between $25 and $100.
- Banks may charge a higher fee if you close within a set period after opening — often 90 days to one year.
- Your account agreement or the bank's website will list any closure fees before you close.
- If your bank charges a fee you think is unfair, you can dispute it or switch to a bank with no closure fee.
When banks charge the most: early closure fees
The highest fees appear when you close an account very soon after opening it. Some banks charge an early closure fee if you close within 90 days, six months, or one year. These fees can be $50 to $100 or more, depending on the bank. The bank's reasoning is that they lose money when customers open accounts and close them quickly without using the account.
This rule applies most often to savings accounts and money market accounts, less often to checking accounts. If you are thinking about opening a new account and then closing your old one, check both banks' terms first. You may be able to avoid the fee by waiting until the time period passes, or by choosing a bank that does not have an early closure fee.
Standard closure fees for accounts open longer
If your account has been open for longer than the early closure period, you may still face a standard closure fee — but it is usually smaller, often $25 to $50. Not all banks charge this fee; many waive it entirely. Some banks only charge if you have an outstanding balance or unpaid fees on the account when you close.
The fee appears on your final statement or is deducted from your remaining balance before the bank sends you the money. Always ask the bank to confirm the exact amount before you close, so you are not surprised.
How to learn about your bank charges a closure fee
The fastest way is to call your bank's customer service line and ask directly: "Is there a fee to close my account?" They will tell you the amount and whether it applies to your specific account type. You can also check your account agreement — the document you signed or agreed to when you opened the account — which lists all fees.
Many banks also post their fee schedules on their website under "Pricing," "Fees," or "Account Terms." If you cannot find it online, the bank is required to give you a copy of the fee schedule if you ask. Write down the fee amount and the name of the person who told you, in case there is a disagreement later.
What to do if your bank charges a closure fee
You have three options. First, you can pay the fee and close the account. Second, you can wait until any early closure period ends, which may eliminate the fee. Third, you can switch to a different bank that does not charge to close accounts — many large banks and credit unions do not.
If you believe the fee is unfair or was not disclosed to you when you opened the account, you can dispute it. Contact the bank in writing and explain why you think the fee should not explore. If the bank refuses, you can file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau (CFPB). This does not cost you anything.
Fees that might appear alongside closure fees
When you close an account, the bank may also charge other fees that are not directly related to closing. For example, if you have an outstanding balance on a credit card or overdraft, the bank will deduct that before sending you any remaining money. If you have unpaid monthly maintenance fees, those come out too.
Some banks charge a fee to issue a cashier's check or transfer money to another bank, though most do not. Ask the bank whether any other fees will explore when you close, so you know the total amount you will receive.
How closure fees affect your final balance
If you have money in the account when you close, the bank deducts any closure fee from that balance before sending it to you. For example, if you have $500 and the closure fee is $25, the bank sends you $475. If you have less money than the fee costs, the bank may send you nothing and you may owe them money — though this is rare.
The bank will show the fee on your final statement so you can see exactly what was deducted. Keep this statement for your records, especially if you are closing because you are unhappy with the bank.
Frequently Asked Questions
Can a bank charge me a closure fee if I did not know about it?
Banks are required to disclose fees in your account agreement and fee schedule before you open the account. If you were not told about a closure fee and the bank charges you one, you can dispute it. Contact the bank and ask them to show you where they disclosed the fee to you.
What if I close my account and the bank charges a fee I did not expect?
Call the bank and ask them to explain the fee. If it was not in your account agreement, ask them to remove it. If they refuse, file a complaint with the CFPB at consumerfinance.gov or with your state's banking regulator. Keep your final statement as proof.
Do credit unions charge closure fees?
Most credit unions do not charge to close an account, but some do. Call your credit union and ask before you close. If they charge and you do not want to pay, switching to a credit union with no closure fee is usually straightforward.
Can a bank charge a closure fee if I have a zero balance?
Yes, some banks charge a closure fee even if you have no money in the account. The fee may be deducted from your final balance if you have one, or the bank may send you a bill for the amount owed. Check your account agreement to see whether the fee applies regardless of your balance.