Online savings accounts are generally a good thing to maintain. Not only do they provide you with money for a rainy day, but they also accrue interest for you over time so you can save for short- or long-term goals. Even so, there are several reasons you might choose to close your online savings account. You might need to use the money or you may be moving to a different area. Or you may have found another account that offers a more competitive interest rate. Whatever the case may be, there are some important considerations when closing a savings account:
Know Your Bank's Policies
The first thing you may want to do is find out is if your bank charges account closing fees (or penalties). This is probably not the case with a basic savings account, but it could be if you are trying to close out a money market account. If you are told that you will incur fees for closing an online savings account, take a moment to decide if the fees are worth it.
Cancel Automatic Deposits
Once you are fully aware of the policies, the next thing you may want to do is cancel any automatic deposits that are tied to the online savings account. If you have all or part of a paycheck or funds from another account directly deposited into your savings account, make sure you cancel that order before closing the account.
Once you have taken the initial steps above, closing the account is generally easy. If you are trying to close an online savings account you may want to make sure you request all of the account closure details in writing. At that point you can settle any outstanding transactions and collect any remaining balance you might have. Before you do that, though, you may want to transfer your remaining balance to another account.
Saving money for future purchases and other goals is a prudent endeavor, but if you really want to close your savings account, bear in mind that you can always open another interest savings account down the road to meet your financial goals. Based on rates published by Bankrate.com, Ally Bank has some of the most competitive interest rates available — whether you want an Online Savings Account, Certificate of Deposit (CD), or Money Market Account — and you can count on us to do right by you and your money. For more information, visit Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.