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 as you save for short- or long-term goals. Even so, there may be reasons you choose to close your online savings account. Before you do, consider the following suggestions.
Know Your Bank’s Policies
Find out if your bank charges account closing fees (or penalties). While you likely won’t be charged for closing a basic savings account, you might for other accounts, like money market accounts. Knowing these costs can help you decide if closing your account is worth it to you.
Cancel Automatic Deposits
Cancel any automatic deposits that are tied to the online savings account. For example, if you have all or part of a paycheck or funds from another account directly deposited into your savings account, be sure to cancel those requests before closing the account. Also close any automatic payments you may have scheduled to come out of your account.
Request all of the account closure details in writing. At that point you can settle any outstanding transactions and collect or transfer any remaining balance you may have.
Saving money for future purchases and other goals is a prudent endeavor, but if you decide to close your savings account, bear in mind that you can always open another interest-bearing 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 open an Online Savings Account, Certificate of Deposit (CD), or Money Market Account. For more information, visit Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.