How to Close a Savings Account

When it comes time to close a bank account, you should always review your account agreement and understand your bank’s process for closing accounts. That’s because there may be slight variations in how you close a bank account, such as a savings account.

How to close an online savings account

To give you an idea of what’s involved, let’s explore the 4 common steps to close an online savings account.

1. Find a new bank account

The first thing to do before closing your current account is to set up a new one. This way, you can ensure that you always have a place to deposit your savings.

Sometimes it’s convenient to stay with the same bank and open a different account, but there may be other times when you want to take advantage of special offers from other banks. Discover the current banking offers available from Citi.

2. Fund your new account

Before you can confidently update your automated transactions to draw from your new account, it’s a good idea to fund that account. This process may take several business days, depending on the transfer method you use. If you’re not sure how long the transfer will take, check with your new bank.

At this point, you may also want to link your new account to other accounts you use so you can transfer your money, as needed. It’s also a good idea to download your old account’s transaction history, which you may need for tax purposes, proof of income or fraud disputes.

Depending on how long the transfer takes and when you must pay your bills, you may want to leave some money in your old account to cover one last round of automatic payments or wait to close your account until the transactions are completed. If you expect the transfer to finish well before it’s time to pay your bills, you can transfer all your money at once.

3. Monitor your old savings account

If you’re waiting for transactions to clear on your account, monitoring the balance can help you understand when you can close the account. You may also be more likely to catch any automated transactions that didn’t transition properly to your new savings account, or that you may have missed.

If you decide to keep your old account open while transitioning to a new one, be aware of any minimum balance requirements. Depending on your bank’s policy, you may be charged a fee if you don’t keep a certain amount of money in your account.

4. Close your account

When you’re ready to close your account, simply contact your bank. Most banks require a balance of $0 or greater to close the account. You might receive any money remaining in your account as a check or transfer it to another account electronically.

Finally, it's a good idea to get written confirmation that your account is closed.

Closing a savings account: FAQs

Is there a fee to close a savings account?

Typically, there isn’t a fee for closing a bank account. However, some banks may charge a fee for closing an account within 90 to 180 days of opening the account.

How do you close a joint savings account?

Since joint savings accounts are shared by 2 or more people, some banks may require that all parties provide signatures when closing the account.

How do I move a savings account from another bank to Citi?

When you open a savings account with Citi, you can fund your new account using other accounts — including those with other banks. Citi accounts also allow you to transfer money between your Citi account(s), as well as to other accounts within the US for free (though other banks may charge fees for doing so).

Learn more about the features and benefits of saving with Citi and open an account.

Does closing a savings account impact your credit?

There’s no direct credit impact for closing a savings account, and those types of account closures aren’t listed on your credit report.

Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.