So, you've decided to close your Ally Bank savings account. Maybe you've found a new banking partner that better suits your needs, or perhaps you're simply consolidating your finances. Whatever the reason, closing a bank account, especially an online-only one like Ally, requires a systematic approach to ensure a smooth transition and avoid any unexpected issues.
Ready to get started? Let's walk through the process step-by-step!
A Comprehensive Guide: How to Close Your Ally Bank Savings Account
Closing an online savings account like Ally Bank's requires careful attention to detail, as you won't be able to simply walk into a physical branch. However, with the right preparation and steps, it can be a straightforward process.
Step 1: Before You Do Anything Else, Prepare for Closure!
This initial phase is crucial for preventing complications and ensuring all your financial ducks are in a row before you formally request closure. Think of this as your financial pre-flight checklist.
Sub-heading 1.1: Emptying Your Account – The Right Way
You'll need to transfer all funds out of your Ally Bank savings account. There are several ways to do this, and choosing the most suitable one depends on your needs and timeline.
Online Funds Transfer (ACH Transfer): This is generally the easiest and most common method. You can initiate a transfer from your Ally account to an external linked bank account. Ensure the external account is already linked and verified within your Ally online banking portal.
Outgoing Wire Transfer: For larger sums or if you need the money quickly, a wire transfer is an option. Be aware that Ally Bank typically charges a fee for outgoing domestic wire transfers ($20 per wire). Wire transfers from a savings account also count towards your monthly withdrawal limit.
Telephone Transfer: You can call Ally customer service to request a transfer of funds. This might be a good option if you prefer speaking with someone directly to ensure the transfer is processed correctly.
Check Request: You can request Ally Bank to mail you a check for your remaining balance. Keep in mind that this method will take longer due to mailing times.
Important Note on Transaction Limits: Ally Bank savings accounts generally have a limit of 10 certain types of withdrawals and transfers per statement cycle. While they don't charge excessive transaction fees, they may close your account if you exceed this limit on more than an occasional basis. So, plan your fund transfers accordingly.
Sub-heading 1.2: Unlinking and Redirecting Automatic Transactions
This is perhaps the most overlooked yet critical step. Any direct deposits or automatic payments linked to your Ally Bank savings account must be changed before you close it.
Direct Deposits: If your paycheck, government benefits, or any other recurring income is directly deposited into your Ally savings, contact your employer, benefits provider, or the relevant institution to update your direct deposit information to your new bank account. Do this well in advance of closing your Ally account.
Automatic Bill Payments: Go through your records (bank statements, online banking, personal finance apps) and identify all automatic bill payments (utilities, subscriptions, loan payments, etc.) that are debited from your Ally savings account. Update these with your new bank account information.
Linked Accounts/Services: If you have any other financial apps or services (e.g., peer-to-peer payment apps, investment platforms) linked to your Ally savings account for transfers or payments, unlink them and connect your new account.
Failing to complete this step can lead to missed payments, late fees, and considerable hassle after your Ally account is closed.
Sub-heading 1.3: Confirming Account Status and Balances
Before you initiate the closure, double-check a few things:
Zero Balance: Ensure your account balance is truly zero after all transfers have cleared. Even a small remaining balance can complicate the closure process.
Pending Transactions: Verify that there are no pending transactions, such as outstanding checks or deposits that haven't fully cleared. You'll need to wait for these to complete before closing the account.
Fees or Penalties: While Ally Bank generally doesn't charge fees for closing a basic savings account, it's always a good idea to confirm. Review your account's terms and conditions or ask a customer service representative. Some banks might charge an early closeout fee if you close an account shortly after opening it (e.g., within 90-180 days).
Step 2: Contacting Ally Bank to Initiate Closure
Once your account is prepared, it's time to officially request closure. Since Ally Bank is an online-only institution, you won't be visiting a physical branch.
Sub-heading 2.1: Your Options for Contact
Ally Bank offers a few convenient ways to contact them:
Phone: This is often the most direct and efficient method. You can speak to a customer service representative who can guide you through the process and answer any immediate questions. Ally Bank's customer service for banking is available 24/7 at 1-877-247-2559.
Online Chat: If you prefer not to call, you may be able to initiate the closure process via online chat when logged into your Ally account. Some users have reported successfully closing accounts this way, though it can sometimes involve slower response times. Look for the "Chat" option within your online banking portal or the Ally mobile app.
Secure Message: You might also have the option to send a secure message through your online banking portal. This method is typically slower, as you'll wait for a response, but it provides a written record of your request.
Sub-heading 2.2: What to Say and What to Expect
When you contact Ally Bank, clearly state that you wish to close your savings account. Be prepared to provide:
Your account number.
Your personal identification information to verify your identity (e.g., name, address, Social Security Number, answers to security questions).
The reason for closing the account (while not strictly necessary, they might ask for feedback).
The representative will likely try to confirm your decision and may ask if there's anything they can do to retain your business. Politely reiterate your intention to close the account. They will then guide you through the final steps.
Joint Accounts: If you have a joint Ally Bank savings account, all account holders may need to provide consent or be present (on the call, for instance) during the closure process, or at least agree to the closure. Verify this requirement with Ally Bank when you contact them.
Step 3: Confirmation and Final Verification
After you've submitted your request, it's vital to confirm that the account has indeed been closed.
Sub-heading 3.1: Obtaining Proof of Closure
Request Written Confirmation: Always ask for written (or electronic) confirmation that your account has been closed. This could be an email confirmation, a secure message, or a letter sent to your mailing address. Keep this record for your files.
Monitor Your Account: Even after receiving confirmation, periodically log in to your Ally Bank account (if still accessible) for a few weeks to ensure no new activity appears and that the balance remains at zero. If you can no longer log in, that's a good sign the account has been successfully closed.
Sub-heading 3.2: Disposing of Associated Materials
Once you have confirmed closure:
Shred Old Statements: Securely shred any physical or printed statements related to the closed account that you no longer need for tax or record-keeping purposes.
Delete Digital Records: If you've downloaded digital statements, ensure they are stored securely or deleted if no longer needed.
Remove Account from Financial Aggregators: If you use any financial aggregation services (like Mint or Personal Capital) that were linked to your Ally account, remove the connection.
Step 4: Post-Closure Follow-Up
Just because the account is closed doesn't mean your work is entirely done. A little follow-up can save you headaches later.
Review Your New Account: Keep a close eye on your new bank account to ensure all redirected direct deposits and automatic payments are now functioning correctly.
Credit Report Check (Optional but Recommended): While closing a savings account typically doesn't impact your credit score, it's good practice to periodically check your credit report for accuracy. Ensure there are no unexpected entries or errors related to the closed account.
By following these steps, you can confidently and efficiently close your Ally Bank savings account, allowing you to move forward with your financial journey with peace of mind.
10 Related FAQ Questions
Here are 10 frequently asked questions about closing bank accounts, particularly relevant to online banks like Ally:
How to transfer funds out of my Ally savings account before closing?
You can transfer funds via online ACH transfer to a linked external account, request an outgoing wire transfer (fees may apply), initiate a telephone transfer, or request a check to be mailed to you.
How to avoid fees when closing my Ally Bank savings account?
Ally Bank generally does not charge a fee for closing a standard savings account. However, if you're closing an account very soon after opening it (e.g., within 90-180 days), some banks might levy an "early closeout fee." It's best to confirm with Ally customer service.
How to ensure all automatic payments are redirected before closing?
Thoroughly review your past bank statements and online banking transactions to identify all recurring debits. Contact each service provider (utilities, subscriptions, loan companies, etc.) individually to update your payment information with your new bank account details before initiating the account closure.
How to close a joint Ally Bank savings account?
For joint accounts, it's typically required that all account holders agree to the closure. When contacting Ally Bank, be prepared for all joint owners to either be on the call or to provide their consent through a secure message or other verified method.
How to get confirmation that my Ally savings account is closed?
Always request a written or electronic confirmation of account closure from Ally Bank. This could be an email, a secure message, or a formal letter. Keep this document for your records.
How to check for pending transactions before closing my account?
Log in to your Ally Bank online account and review your transaction history. Ensure that all checks you've written have cleared and that any recent deposits have fully posted to your account.
How to dispose of old Ally Bank debit cards or checks?
Once your account is confirmed closed, securely shred any unused checks and cut up your debit card into multiple pieces to prevent misuse.
How to handle a small remaining balance in my Ally savings account?
If a small balance remains, you can typically transfer it out via ACH, request a check, or sometimes even ask the bank to donate it to charity (though this is less common for small amounts). It's best to zero out the account completely before requesting closure.
How to know if my direct deposit has successfully switched to my new bank?
After updating your direct deposit information, monitor your new bank account to confirm the first few expected direct deposits arrive as planned. You can also contact your employer's payroll department to verify the change.
How to contact Ally Bank customer service for account closure?
You can contact Ally Bank's customer service for banking inquiries by calling 1-877-247-2559 (available 24/7), using the online chat feature when logged into your account, or sending a secure message through your online banking portal.