So, you've decided to move on from Ally Bank. Whether you're switching to a local credit union, consolidating your finances, or simply no longer need the account, closing a bank account requires a methodical approach to avoid any unwelcome surprises. Don't worry, it's not as daunting as it might seem! This comprehensive guide will walk you through every step of closing your Ally Bank account smoothly and efficiently.
Your Journey to Account Closure Begins Now!
Are you ready to take control of your financial freedom and cleanly sever ties with your Ally Bank account? Let's dive in!
Step 1: The Pre-Closure Checklist – Preparing for a Smooth Transition
Before you even think about hitting that "close account" button or picking up the phone, there are a few crucial preparatory steps to ensure a seamless transition and prevent any future headaches. This is arguably the most important phase of the entire process.
1.1 Redirect All Direct Deposits and Automatic Payments
This is paramount! Imagine your paycheck going into a closed account, or your rent payment bouncing. It's a recipe for disaster.
Identify all incoming direct deposits: This includes your paycheck, government benefits, retirement distributions, and any other regular deposits. Contact your employer's HR or payroll department, the government agency, or the payer directly to update your banking information to your new account.
Update all outgoing automatic payments: Think about your utility bills, subscription services (Netflix, Spotify, gym memberships), loan payments, credit card bills, and any other recurring debits. Log into each service's portal or contact them directly to switch the payment method to your new bank account.
Pro-Tip: Review your last 6-12 months of Ally Bank statements to catch all recurring transactions you might otherwise forget.
1.2 Transfer or Withdraw Remaining Funds
You can't close an account with a balance, whether positive or negative.
Transferring funds: The easiest way to move your money is often through an external transfer from your Ally Bank account to your new bank account. Log into your Ally Bank online banking portal, navigate to the "Transfers" section, and initiate an external transfer. You'll need your new bank's routing and account number. Be aware that external transfers can take 1-3 business days to clear.
Alternative withdrawal methods: If you prefer, you can also:
Initiate a wire transfer: This is faster but usually comes with a fee.
Request a check: Ally Bank can mail you a check for your remaining balance. This may take longer to receive and deposit.
ATM withdrawal (if applicable and limited): For smaller amounts, you might be able to withdraw cash from an ATM, but remember Ally Bank is primarily online, so this might be through an ATM network with limits.
1.3 Allow All Pending Transactions to Clear
Any checks you've written, payments you've initiated, or deposits that are still "pending" must fully clear before you can close the account. Attempting to close an account with pending transactions can lead to:
Overdrafts
Returned payments
Additional fees
A delay in your account closure. Give it a few extra business days after your last anticipated transaction to be safe.
1.4 Check for Any Early Closure Fees
While most banks don't charge a fee for closing an account, some may impose a fee if you close an account shortly after opening it (e.g., within 90 or 180 days). Review your Ally Bank account agreement or contact customer service to inquire about any such fees.
Step 2: Choosing Your Closure Method – How to Contact Ally Bank
Ally Bank, being an online-focused bank, offers a few convenient ways to initiate your account closure.
2.1 The Preferred Method: Calling Ally Bank Customer Service
This is often the most direct and efficient way to close your account, especially if you have any questions or specific circumstances.
Phone Number: You can reach Ally Bank customer service at 1-877-247-2559. They are generally available 24/7.
What to Expect:
Be prepared to verify your identity (account number, Social Security Number, security questions).
State clearly that you wish to close your account.
The representative will guide you through the remaining steps and confirm that all funds have been cleared/transferred.
They will likely ask you for the reason for closure. You are not obligated to provide a detailed explanation, a simple "I no longer need the account" or "I'm consolidating my banking" is sufficient.
2.2 Written Request by Mail
While less immediate, sending a written request is another option, particularly if you prefer a paper trail.
Address: Send your written request to: Ally Bank Customer Care P.O. Box 951 Horsham, PA 19044
What to Include:
Your full name as it appears on the account.
Your full account number.
The type of account you wish to close (e.g., Checking, Savings, CD).
A clear statement requesting the closure of the account.
Your signature and the current date.
Optional: If you still have a small balance, you can include instructions for how you'd like it disbursed (e.g., mail a check to your address).
It's highly recommended to send this via certified mail with a return receipt requested for proof of delivery.
2.3 Online Account Closure (Limited Availability)
While Ally Bank allows many functions online, direct account closure through their online portal might not be available for all account types or in all scenarios.
Check your Ally Bank online dashboard: Log in and look for options under "Profile & Settings" or "Account Services" that might relate to account management or closure. If you don't see a clear option, calling is your best bet.
For certain accounts like CDs (Certificate of Deposits), there might be specific online options during the grace period after maturity.
Step 3: The Closure Confirmation – Ensuring Everything is Finalized
Once you've initiated the closure, your work isn't quite done. It's crucial to confirm that the account has been successfully closed.
3.1 Request Written Confirmation
Whether you call or mail, always request a written confirmation that your account has been closed. This can be sent via email or postal mail. This document serves as your official proof of closure.
Keep this confirmation for your records.
3.2 Monitor Your New Account and Previous Direct Deposits/Payments
Double-check your new bank account to ensure all direct deposits are coming through correctly and all automatic payments are being debited from the new account.
Continue to monitor your mail and email for any correspondence from Ally Bank regarding the closed account.
3.3 Shred Old Documents and Debit Cards
Once you have confirmation of closure and are confident all transactions have been rerouted, it's time to securely dispose of any physical documents related to your Ally Bank account (statements, checks, debit cards).
Shredding is key to protecting your personal information.
Step 4: Special Considerations for Different Ally Bank Account Types
While the general steps above apply to most checking and savings accounts, some Ally Bank products have unique considerations.
4.1 Closing Ally Bank CDs (Certificates of Deposit)
Maturity is Key: The best time to close a CD is during its grace period after maturity. Ally Bank typically offers a 10-day grace period where you can withdraw funds or close the CD without penalty.
Early Withdrawal Penalties: If you need to close a CD before its maturity date, be prepared to pay an early withdrawal penalty. This penalty varies based on the CD term. Review Ally Bank's CD FAQs for specifics on penalties.
IRA CDs: If your CD is part of an Individual Retirement Account (IRA), consult with a tax advisor before closing to understand any tax implications.
4.2 Closing Ally Invest Accounts (Investment Accounts)
Closing an investment account like an Ally Invest Self-Directed or Robo Portfolio account involves different procedures than a standard bank account.
Transferring Assets: You'll typically need to decide whether to transfer your investments "in kind" (as they are) to another brokerage or liquidate them and transfer the cash.
Tax Implications: Selling investments can trigger capital gains or losses, so consult a tax professional.
Contact Ally Invest Directly: For investment account closures, contact Ally Invest customer service at 1-855-880-2559. Their hours may differ from the main bank line.
Frequently Asked Questions (FAQs) about Closing an Ally Bank Account
Here are 10 common questions with quick answers to help you further:
How to initiate the closure of my Ally Bank checking or savings account?
The most efficient way is to call Ally Bank customer service at 1-877-247-2559. You can also send a written request by mail.
How to transfer funds out of my Ally Bank account before closing?
You can initiate an external transfer from your Ally Bank online banking portal to your new bank account. You'll need the routing and account number of your new bank.
How to ensure all direct deposits are rerouted before closing my Ally Bank account?
Contact your employer's payroll department, government agencies, or any other source of direct deposits to update your banking information to your new account. Review past statements to identify all sources.
How to confirm all automatic payments are updated before closing my Ally Bank account?
Log into each biller's website or contact them directly to change your payment method to your new bank account. Check your past statements for a comprehensive list of recurring debits.
How to avoid early closure fees with Ally Bank?
Check your account agreement; some banks charge a fee if you close an account shortly after opening it (e.g., within 90-180 days). If applicable, wait until this period has passed.
How to get written confirmation that my Ally Bank account is closed?
When you call customer service to close the account, explicitly request a written confirmation of closure to be sent to you via email or mail.
How to close an Ally Bank CD without penalty?
The best time is during the 10-day grace period after the CD matures. Early withdrawals typically incur a penalty based on the CD's term.
How to close an Ally Invest investment account?
Contact Ally Invest customer service directly at 1-855-880-2559. The process involves transferring or liquidating assets and may have tax implications.
How to dispose of old Ally Bank checks and debit cards after closing the account?
Once you have confirmation of closure, securely shred all physical documents, including unused checks and your debit card, to protect your personal information.
How to handle a negative balance if I want to close my Ally Bank account?
You must pay off any negative balance or outstanding fees before Ally Bank will allow you to close your account. Contact them to settle any amounts due.
