Closing a savings account does not affect your credit score
Closing a savings account has no impact on your credit because savings accounts are not reported to the credit bureaus that calculate your score. Your credit score measures how you borrow and repay money — it tracks credit cards, loans, and lines of credit. A savings account is straightforward a place where you store your own money, so the bank has no reason to report it to the agencies that monitor borrowing.
This is one of the clearer rules in banking: savings accounts stay off your credit report entirely, whether they are open or closed. You can open ten savings accounts and close them all tomorrow without a single mark on your credit history.
Key Takeaways
- Savings accounts do not appear on your credit report, so closing one cannot lower your credit score.
- Credit scores track borrowed money and repayment — credit cards, loans, and lines of credit — not money you deposit yourself.
- Closing a savings account may trigger a bank report to ChexSystems if you have an unpaid overdraft or negative balance, but ChexSystems is separate from your credit score.
- The only account closures that affect credit are credit cards and lines of credit, because those are credit products.
- If you are closing a savings account to avoid fees or poor service, that decision has no credit consequences.
What credit bureaus actually track
The three major credit bureaus — Equifax, Experian, and TransUnion — collect information only about credit accounts. These are accounts where a lender gives you money and you agree to pay it back. A credit card is a credit account. A car loan is a credit account. A mortgage is a credit account. A savings account is not, because the bank is not lending you anything.
When you close a savings account, the bank does not report it to these bureaus because there is nothing to report. The account was never part of your credit history in the first place. Your credit score depends on payment history, amounts owed, length of credit history, credit mix, and new credit inquiries — none of which a savings account touches.
When closing an account might show up elsewhere
Although closing a savings account will not affect your credit score, it may show up in a different banking database called ChexSystems. This is a system that banks use to check whether you have a history of mishandling deposit accounts — bouncing checks, leaving accounts overdrawn, or closing accounts with negative balances.
If you close a savings account in good standing — meaning you have paid any overdraft fees and brought the balance to zero or positive — ChexSystems will not flag it. But if you close an account while it still owes the bank money, the bank may report that to ChexSystems, and future banks may see it when you try to open a new account. This can make it harder to open a new checking or savings account, but it is not a credit issue and does not touch your credit score.
ChexSystems reports typically stay on file for five years. If you have a negative mark there, some banks will still open accounts for you, but others will decline. It is worth checking your ChexSystems report before closing an account with a balance owed, because you can sometimes negotiate a settlement with the bank.
Why closing a credit card is different
Closing a credit card is different from closing a savings account because a credit card is a credit product. When you close a credit card, it does show up on your credit report and can affect your score — usually by a small amount in the short term, though the long-term effect depends on your overall credit profile.
The main reason closing a credit card can lower your score is that it reduces your total available credit. If you had a $5,000 limit and you close that card, your available credit drops by $5,000. This can raise your credit utilization ratio — the percentage of your available credit that you are actually using — and a higher utilization ratio can lower your score.
But a savings account closure has none of these effects because savings accounts have no credit limit and no utilization ratio. They straightforward do not participate in the credit system.
What actually matters when you close a savings account
The real consequences of closing a savings account are practical, not financial. Before you close, make sure you have moved any money you want to keep to another account. Check whether the bank will charge a fee for closing the account early — some banks do, especially if the account is very new. Confirm that any automatic deposits or withdrawals tied to that account have been redirected elsewhere, because a payment that bounces after you close the account can create problems.
If you are closing the account because of poor service or high fees, that is a reasonable decision with no credit penalty. If you are closing it because you are worried about your credit score, you can stop worrying — the account closure itself will not touch it.
How to close a savings account safely
Contact your bank and ask how to close the account. Most banks let you do this online, by phone, or in person. The bank will ask you how you want to handle any remaining balance — they will either transfer it to another account you have at the same bank, send you a check, or deposit it to an external account you provide.
Ask the bank to confirm in writing that the account is closed and that there are no remaining fees or balances owed. Keep this confirmation. If the bank later reports a negative balance to ChexSystems, you will have proof that you closed the account properly.
After you close the account, check your bank statements for the next month or two to make sure no unexpected charges appear. If the bank had any automatic payments set up on that account, verify that they have moved to your new account and are processing correctly.
Frequently Asked Questions
Will closing a savings account lower my credit score?
No. Savings accounts do not report to credit bureaus, so closing one has no effect on your credit score. Your score only tracks credit products like credit cards and loans.
Can closing a savings account affect my ability to get a loan?
Not directly. A loan decision depends on your credit score and credit history, which a savings account closure does not touch. However, if you close the account with an unpaid balance, the bank may report it to ChexSystems, which some lenders check as part of their underwriting process.
What is the difference between ChexSystems and my credit score?
ChexSystems tracks how you handle deposit accounts — checking and savings. Your credit score tracks how you handle borrowed money. They are separate systems. A negative ChexSystems report will not lower your credit score, but it may make banks reluctant to open new accounts for you.
Should I close my savings account before explore for a mortgage?
Closing a savings account will not help or hurt your mortgage process. Lenders care about your credit score, income, and debt-to-income ratio — not whether you have a savings account open. In fact, having savings can sometimes help your process because it shows you have reserves.
If I have multiple savings accounts, does closing one affect the others?
No. Each savings account is separate. Closing one account does not affect any other accounts you have, whether they are at the same bank or a different one. Your credit score will not change either way.