Closing a bank account can sometimes feel like navigating a maze, especially with online-only institutions like Ally Bank. You might be wondering about fees, how to transfer your funds, or if it will impact your credit. Don't worry, we're here to break down the process step-by-step, making it as smooth as possible.
The Ultimate Guide to Closing Your Ally Bank Account
So, you've decided to move on from Ally Bank. Perhaps you've found a local bank that better suits your needs, or maybe you're consolidating your finances. Whatever your reason, closing an account requires a systematic approach to ensure all loose ends are tied up. Let's dive in!
Step 1: Engage and Assess Your Current Ally Bank Account Status
Before you do anything drastic, let's get a clear picture of your Ally Bank accounts. This initial assessment is crucial to avoid any future headaches.
What accounts do you have with Ally? Do you have a checking account, a savings account, money market, CDs, or even an Ally Invest account? Each type might have slightly different closure procedures.
Check your balances. Make sure you know the exact balance in each account. You'll need to transfer all funds out before you can close the account.
Review pending transactions. Have you written any checks recently? Do you have any scheduled bill payments or transfers coming up? Ensure all pending transactions have cleared before proceeding. This is paramount to avoid overdrafts or returned payments.
Identify linked accounts and recurring payments. Do you have direct deposits coming into Ally? Are there any automatic bill payments set up from your Ally account (e.g., utilities, subscriptions, loan payments)? Make a comprehensive list of these. You'll need to update all of these with your new bank information. Neglecting this can lead to missed payments and late fees.
Examine any outstanding loans or credit products with Ally. If you have an Ally credit card or an auto loan, closing your bank account may or may not directly affect these, but it's important to be aware of all your relationships with the institution. Generally, bank account closures don't impact credit cards or loans unless there's an outstanding negative balance that goes to collections.
Step 2: Prepare Your Funds for Transfer
This is a critical step. You cannot close an Ally Bank account with a positive balance. You need to move all your money out.
Sub-heading: Opening a New Account (If You Haven't Already!) If you're closing your Ally account to switch banks, make sure your new account is fully open and operational before you start transferring funds. This provides a safe landing spot for your money.
Sub-heading: Transferring Your Funds Out Ally Bank offers several convenient ways to move your money.
ACH Transfer (Electronic Funds Transfer): This is usually the easiest and most common method. You can link your new bank account to your Ally account and initiate a transfer. Ally typically doesn't charge for standard ACH transfers. This usually takes 1-3 business days.
Wire Transfer: If you need to move a large sum quickly, a wire transfer is an option. Be aware that Ally Bank typically charges a fee for outgoing domestic wire transfers. As of current information, this fee is around $20. You'll need the routing and account number of your new bank.
Check Request: You can request an official bank check from Ally Bank for the remaining balance. This can be mailed to you.
ATM Withdrawal (for smaller amounts): While Ally doesn't have its own ATMs, you can use Allpoint® or MoneyPass® ATMs for free. Ally also reimburses up to $10 per statement cycle for fees charged at other ATMs. However, this is only practical for smaller balances.
Important Note: Ensure your balance is truly $0.00. Even a few cents left can prevent the account from closing. Once you believe all funds are transferred, give it a day or two to ensure everything has settled.
Step 3: Update Direct Deposits and Automatic Payments
This step often gets overlooked and can lead to significant headaches down the line.
Sub-heading: Redirecting Direct Deposits Contact your employer, any government agencies (e.g., Social Security), or any other source of recurring income to update your direct deposit information to your new bank account. Do this well in advance of closing your Ally account.
Sub-heading: Switching Automatic Payments Go through your list of recurring payments (utilities, streaming services, loan payments, subscriptions, etc.) and update them with your new bank account details. It's a good idea to cross-reference your Ally statements from the past 6-12 months to ensure you haven't missed anything. Many services allow you to update this information online.
Step 4: Contact Ally Bank to Initiate Account Closure
Once you've ensured your balance is zero and all linked transactions and payments have been rerouted, you can finally contact Ally Bank to close your account. Unlike some traditional banks, Ally Bank does not have physical branches for in-person closure.
Sub-heading: Contacting Ally Customer Service The most common ways to close your Ally Bank account are:
Phone Call: This is often the most efficient method as you can speak directly with a representative. Ally Bank's customer service number is 1-877-247-2559, and they are available 24/7. Be prepared to verify your identity with personal information and possibly security questions.
Online Chat: Some users on Reddit have reported success closing their accounts via online chat after logging into their Ally account. This can be a convenient option if you prefer not to call. Look for the "Chat" icon or option after logging in.
Secure Message (less common for immediate closure): While you can send secure messages, it might take longer to get a response and complete the closure process compared to a phone call or chat.
What to Say: Clearly state that you wish to close your account(s). The representative will likely ask for your reason, but you are not obligated to provide a detailed explanation. They will then guide you through the final steps.
Step 5: Obtain Confirmation of Closure
Sub-heading: Get It In Writing! This is a critical step for your records. After the Ally representative confirms your account is closed, request written confirmation. This can be an email or a formal letter. Keep this document with your financial records. This serves as proof that the account was officially closed and that you are no longer responsible for it.
Sub-heading: Monitor Your Accounts For a few weeks after closure, periodically check your new bank account to ensure all expected direct deposits and payments are flowing correctly. Also, keep an eye on your credit report for any unexpected activity, although closing a healthy bank account typically has no negative impact on your credit score.
Step 6: Securely Dispose of Old Bank Materials
Once you have confirmation that your Ally account is officially closed, it's time to safely dispose of any associated physical materials.
Shred old debit cards: Cut up your Ally Bank debit card(s) into small pieces, ensuring the chip and magnetic strip are thoroughly destroyed.
Shred unused checks: If you had a checking account, shred any remaining unused checks.
Dispose of sensitive documents: Securely shred any old bank statements or documents related to your closed Ally account that you no longer need for record-keeping.
Related FAQ Questions
Here are 10 frequently asked questions about closing an Ally Bank account, structured with "How to" for quick answers:
How to know if I have any pending transactions on my Ally Bank account?
Log in to your Ally Bank online banking or mobile app and review your "Activity" or "Transactions" section. Look for any pending debits or credits.
How to transfer all my money out of Ally Bank for free?
The most common free method is to link your new bank account to Ally and initiate an ACH transfer. This typically takes 1-3 business days.
How to avoid fees when closing my Ally Bank account?
Ally Bank generally does not charge fees for closing a bank account, provided you've transferred all funds out and there are no outstanding negative balances. However, be aware of potential wire transfer fees if you choose that method for moving funds.
How to contact Ally Bank customer service for account closure?
You can call them at 1-877-247-2559 (available 24/7) or use their online chat feature after logging into your account.
How to get written confirmation that my Ally Bank account is closed?
When you speak with an Ally representative to close your account, specifically request an email or letter confirming the closure.
How to update direct deposit with my employer after closing Ally?
Contact your employer's HR or payroll department and provide them with the routing and account number for your new bank. They will usually have a form or online portal for this.
How to change automatic payments from my Ally account to a new bank?
Log in to each service provider's website (e.g., utility company, streaming service) and update your payment method to your new bank account details.
How to ensure my credit score isn't impacted when closing Ally Bank?
Closing a bank account (checking or savings) itself typically does not impact your credit score, as these accounts are not reported to credit bureaus. The only way it might affect your credit is if you had a negative balance that went to collections.
How to re-open an Ally Bank account after closing it?
Generally, once an account is closed, it cannot be simply "reopened." You would need to apply for a new account with Ally Bank if you wish to bank with them again in the future.
How to handle a joint Ally Bank account closure?
For joint accounts, all account holders may need to provide consent for closure. It's best to have all parties present during the phone call or chat, or ensure they are aware of and agree to the closure. Check with Ally's customer service for specific requirements for joint accounts.
