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How to close a savings account

When it comes time to close a bank account, you should always close the account properly so that you don't get penalized for having an inactive account.

How to close an online savings account

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 safe place to put your money.

Sometimes it's convenient to stay with the same company and open a different account, and other times you want to take advantage of special deals that a different company offers. Discover the current banking offers available from Citi.

7 digital access for their savings and checking accounts. They also offer no fee Citibank ATM access for their checking account members. Open an account now to gain access to these benefits or you can also visit your local branch.

Review and update any automated transactions

If you have any automatic transactions such as monthly bill pay linked to your savings account, cancel those automatic payments and/or transfer them to your new account once you have established the new account with enough money to cover those expenses.

Make sure to wait until you have funds available in your new account to avoid overdraft. You may also want to link your new account to other accounts that you use so that you can transfer your money when you need to.

Move your money to your new account

Once you've opened your new account and reviewed your automatic payments, transfer your money to the new account. This process can take anywhere from 2-10 business days or more, depending on how much you're transferring and if you're transferring within the same company—always check with your new bank how long the transfer should take.

Depending on how long the transfer takes and when you have to pay your next bill(s), you may want to leave some money in your old account to cover one last round of automatic payments or anything you might have missed until you have funds available in your new account. If you expect the transfer to finish well before it's time to pay your bills, you can transfer everything at once.

Monitor your old savings account

While you transition to your new account, you may want to leave the old one open with funds to cover any remaining bills for another month so that you can keep an eye out for any bills or automatic payments that didn't transition properly to your new account.

This way, mistakes will not cost you NSF (non-sufficient fund) fees, interest charges, and/or delays in service(s).

Another reason to monitor the old account is to make sure you don't have any lost deposits. In other words, if you're supposed to receive a direct deposit, and it's heading towards an account that no longer exists, you may not receive that money unless you ask for it from whoever is paying you.

Finally, if you decide to monitor your old account in this way, be aware of any minimum balance requirements. Not meeting a minimum balance requirement could mean the bank charges a fee, so be sure you understand the requirements and know what to expect.

Download your transaction records

Downloading and keeping record of your transaction records for savings accounts or any account is good practice in case you need financial records for tax purposes, proof of income, and/or fraud dispute.

Close your account

When you're ready to close your account, simply contact your bank. Most banks will require you to have a balance of $0 or greater to close the account.

Any money remaining in your account may be given to you in the form of a check, cash, or transferred to another account. If your balance upon closing is greater than $0, be sure to clearly indicate on any form(s) that you want to receive your money and how you want to receive it. If you're closing an account in-person, it's best to come prepared with proper photo identification.

How to close a traditional savings account

Closing a traditional savings account usually does not come with any penalties, and you can close the account at any time that the balance is $0 or greater.

However, depending on what kind of savings account you open, there may be termination fees associated with the account. If you don't remember what the terms of your account are, you can always check with your bank to find out.

How to close a joint savings account

A joint savings account is an account with more than one person having access to the account. Some joint savings accounts can be closed by one account holder without the other's consent, others require both parties to be present to close the account.

What to do with the remaining balance in your savings account

There are many things you can do with the remaining balance in your savings account — from transferring it into your new account to using it to buy groceries. In any case, the first thing to do is make sure you have access to the remaining balance.

When closing your account, there will sometimes be special sections on the forms where you have to indicate that you want your remaining balance returned to you and then request it be sent to you by check, credited to another account, or given to you in cash.

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 — even those outside of Citi. Citi accounts also allow you to transfer money between your Citi savings account(s) to other accounts within the US for free (unless the other bank(s) charge fees.)

After you open your new Citi savings account, you'll have 24/7 access and the ability to link to a checking account. Many customers like to link their checking and savings accounts so that they can easily transfer money to and from their savings and use their combined balance to meet any minimum balance requirements.

Learn more about Citi's current offers and open the right savings account for you.