Canceling a bank account might seem like a daunting task, but with the right information and a step-by-step approach, it can be a smooth process. If you're looking to close your Ally Bank account, this comprehensive guide will walk you through every essential step.
Ready to Say Goodbye to Your Ally Bank Account? Let's Get Started!
Are you considering closing your Ally Bank account? Perhaps you've found a different banking solution that better suits your needs, or maybe you're simply consolidating your finances. Whatever your reason, closing a bank account requires a bit of preparation to ensure a hassle-free transition. This guide will provide you with all the necessary steps to cancel your Ally Bank account efficiently and without any unwelcome surprises.
Step 1: Assess Your Account Status and Prepare for Closure
Before you initiate the closure process, it's crucial to take a thorough look at your Ally Bank account. This initial assessment will help you avoid potential issues and ensure a smooth transition of your funds and services.
Sub-heading: Checking Your Account Balance
The very first thing you need to do is verify your current account balance. Ideally, you want to close an account with a zero balance. If you have funds remaining, you'll need to transfer them out.
Sub-heading: Identifying Pending Transactions
Go through your recent transactions to ensure there are no pending deposits, withdrawals, or checks that haven't cleared yet. Any outstanding transactions could complicate the closure process. It's best to wait until all transactions have been fully processed.
Sub-heading: Reviewing Linked Services and Automatic Payments
This is an extremely important step. Many people forget about automatic payments, direct deposits, and linked services. Make a comprehensive list of everything connected to your Ally Bank account, including:
Direct Deposits: Your salary, government benefits, or any other recurring income.
Automatic Bill Payments: Utilities, loan payments, subscriptions (Netflix, Spotify, etc.), insurance premiums, credit card payments, etc.
Linked External Accounts: Any other bank accounts you have linked for transfers.
Online Payment Platforms: PayPal, Venmo, Zelle, etc., if linked to your Ally account.
Failure to update these details before closing your account can lead to missed payments, late fees, and significant inconvenience.
Sub-heading: Downloading or Saving Past Statements
Even after closing your account, you might need access to past statements for tax purposes, financial record-keeping, or future reference. Ally Bank provides digital statements. Before closing, it's a good practice to download and save copies of your statements for at least the past few years. You can typically do this by logging into your online banking portal.
Step 2: Transferring Remaining Funds Out of Ally Bank
Once you've assessed your account and have a clear picture, the next step is to move any money out of your Ally Bank account.
Sub-heading: Options for Fund Transfer
Ally Bank offers several ways to transfer your funds to another account:
Electronic Funds Transfer (ACH): This is generally the easiest and most common method. You can initiate an electronic transfer from your Ally Bank account to another linked external account. Standard ACH transfers typically take 1-3 business days.
Wire Transfer: If you need to move a large sum of money quickly, a wire transfer is an option. Be aware that Ally Bank charges a fee for outgoing domestic wire transfers ($20 as of the last available information).
Check Request: You can request Ally Bank to issue a check for your remaining balance and mail it to you. This might take longer than electronic transfers.
ATM Withdrawal (if applicable): While Ally is primarily an online bank, you can use your debit card at ATMs for withdrawals. However, this is only practical for smaller amounts due to daily withdrawal limits.
Sub-heading: Ensuring Zero Balance
The goal is to bring your account balance down to exactly zero. If you leave a small amount, the bank might not be able to fully close the account or it might incur a dormant fee, delaying the closure. If there's a very small residual amount (e.g., a few cents of interest), you can usually advise the customer service representative to waive it during the closure call.
Step 3: Updating Direct Deposits and Automatic Payments
This is a critical step to prevent financial disruptions. Do not close your Ally Bank account before completing this step!
Sub-heading: Contacting Employers and Payment Providers
For direct deposits like your paycheck, you'll need to contact your employer's HR or payroll department to provide them with the new routing and account numbers for your new bank. Do this well in advance, as it can take one or two pay cycles for the change to take effect.
Sub-heading: Modifying Automatic Bill Payments
Go through the list of automatic bill payments you compiled in Step 1. For each service, log in to their respective portals or contact their customer service to update your payment method with your new bank account information. This includes utilities, loan providers, streaming services, and any other recurring charges.
Remember that some services might have a delay in processing changes, so it's always best to make these updates well before your next scheduled payment date.
Sub-heading: Unlinking Online Payment Platforms
If you use services like PayPal, Venmo, or Zelle, log in to these platforms and unlink your Ally Bank account. Replace it with your new bank account to ensure continued functionality.
Step 4: Contacting Ally Bank to Initiate Account Closure
Since Ally Bank is an online-only bank, you won't be visiting a physical branch. The primary methods for closing your account will be via phone or secure message.
Sub-heading: Calling Ally Bank Customer Service
This is often the most direct and efficient way to close your account.
Ally Bank's General Banking Customer Service Number: 1-877-247-2559. They are available 24/7.
What to Expect on the Call:
Be prepared to verify your identity with personal information (account number, Social Security Number, date of birth, etc.).
Clearly state that you wish to close your account(s).
The representative might ask for your reason for closing, but you are not obligated to provide a detailed explanation. A simple "I'm consolidating my accounts" or "I've decided to bank elsewhere" is sufficient.
Confirm that there are no pending transactions or remaining balances. If there's a small residual amount, ask if it can be waived.
Ask for a confirmation number or email once the closure request has been processed. This is your proof of cancellation.
Sub-heading: Sending a Secure Message (Alternative)
While a phone call is generally recommended for immediate confirmation, you may be able to initiate the closure via a secure message within your Ally Bank online banking portal. Log in, navigate to the "Contact Us" or "Messages" section, and compose a message requesting account closure. Be sure to clearly state your account number and intention. Follow up if you don't receive a confirmation within a few business days.
Sub-heading: Joint Accounts
If you have a joint account, all account holders might need to provide consent or be present on the call for the closure process. Confirm this requirement with Ally Bank customer service beforehand to avoid delays.
Step 5: Confirmation and Final Steps
After you've initiated the closure, there are a few more steps to ensure everything is finalized.
Sub-heading: Receiving Closure Confirmation
Ally Bank should provide you with a written confirmation that your account has been closed. This might be an email or a message within your online banking portal. Keep this record for your files.
Sub-heading: Monitoring Your Account (Temporarily)
Even after receiving confirmation, it's a good idea to periodically check your Ally Bank login (if still accessible) for a few days to a week to ensure no further transactions occur and that the account status shows as "closed."
Sub-heading: Disposing of Old Debit Cards and Checks
Once your account is confirmed closed, it's essential to safely dispose of your Ally Bank debit card and any unused checks.
Debit Card: Cut the card into several pieces, making sure to cut through the chip and magnetic stripe, before discarding it.
Checks: Shred any unused checks to prevent misuse of your account information.
10 Related FAQ Questions:
How to transfer funds from my Ally Bank account before closing?
You can transfer funds via ACH (electronic transfer) to a linked external account, initiate a wire transfer (fees may apply), or request a check for the remaining balance.
How to know if all my direct deposits have been moved from Ally Bank?
Contact your employer's payroll department and any other direct deposit sources to confirm they have updated your banking information to your new account. It may take 1-2 pay cycles for changes to reflect.
How to stop automatic payments linked to my Ally Bank account?
Log in to each service provider's website (utilities, subscriptions, loans, etc.) and update your payment method with your new bank account details. Do this before closing your Ally account.
How to contact Ally Bank customer service to close my account?
You can call Ally Bank's general banking customer service at 1-877-247-2559. They are available 24/7.
How to close a joint Ally Bank account?
For joint accounts, all account holders typically need to provide consent for closure. It's best to have all joint account holders present on the call with customer service.
How to get a confirmation that my Ally Bank account is closed?
During your call with customer service, request a confirmation number or an email confirming the account closure. Keep this record for your files.
How to dispose of my Ally Bank debit card and unused checks?
Once your account is closed, cut your debit card through the chip and magnetic stripe, and shred any unused checks to protect your financial information.
How to avoid fees when closing an Ally Bank account?
Ally Bank generally does not charge fees for closing accounts. However, ensure your balance is zero and there are no pending transactions to avoid any potential issues. Outgoing wire transfer fees may apply if you choose that method to move funds.
How to check if my Ally Bank account has a minimum balance requirement?
Ally Bank checking and savings accounts typically have no minimum balance requirements to open or avoid monthly maintenance fees.
How to know if closing my Ally Bank account will affect my credit score?
Closing a checking or savings account generally does not directly impact your credit score, as these accounts are not reported to credit bureaus in the same way loans or credit cards are. However, ensuring all automatic payments linked to the account are updated is crucial to avoid missed payments, which could negatively affect your credit.
