Closing a bank account after getting the bonus

The bonus has posted. Here is how to decide when to close, how to do it cleanly, and the loose ends — interest, statements, 1099s — that follow you afterward.

Closing an account you opened for a bonus is normal and, done at the right time, costs nothing. The risks are all about timing and loose ends: closing inside a fee or clawback window, leaving a negative balance, or losing access to records you'll need at tax time.

Step 1: Find your safe closing date

Look at three documents — the promotion terms, the fee schedule and the deposit account agreement — for:

• An early closure fee window (for example, a fee if the account is closed within a stated number of days of opening).
• A clawback or "must remain open" window, which may run from opening or from the date the bonus posted.
• Ongoing conditions, such as keeping a minimum balance until a certain date.

Your safe date is the latest of these, plus a buffer of a week or two for pending transactions. Mechanics and typical windows are in our early closure fees and clawbacks guide.

Step 2: Decide whether to close at all

Closing isn't mandatory. Reasons to keep an account: no monthly fee (or an easy waiver), a decent rate, a useful feature, or a longer history with the bank for future offers. Reasons to close: a monthly fee you'd otherwise pay, clutter, or exposure to fraud on an account you never check. Many bank bonus terms exclude people who held an account within a stated look-back period, so closing doesn't automatically make you eligible again soon — check the next offer's terms.

Step 3: Prepare the account

1. Redirect money flows. Move direct deposits, autopays, and links from other banks, brokerages and payment apps.
2. Wait for everything to clear. Outstanding checks and pending card transactions can post after closing and create a negative balance.
3. Download records. Save statements for the full period and the bonus posting. Online access often ends at closure.
4. Check the interest policy. Under Truth in Savings, banks must disclose whether interest that has accrued but not yet been credited is forfeited if you close before the crediting date. If it is, close just after interest posts.
5. Move the balance out — leaving enough to cover any fee you've decided to accept.

Step 4: Close it in a way that leaves a record

Use secure message, a closure form, or a branch visit with a receipt. Ask for written confirmation that the account is closed with a zero balance and save it with your offer records. Destroy unused checks and the debit card once closure is confirmed.

What closing does — and doesn't — do to your record

• ChexSystems: a voluntary closure with a zero balance is not a negative item. Problems come from accounts closed by the bank for cause, especially with an unpaid negative balance. See ChexSystems and your banking record.
• Credit score: deposit accounts aren't reported to the credit bureaus, so closing a checking or savings account doesn't change your credit score.
• Relationship: some banks track bonus history internally and may decline future bonuses or accounts for customers who close quickly. That's the bank's policy, not a regulatory record.

After you close

• Tax forms still come. Expect a 1099-INT or 1099-MISC the following January if the bonus or interest crossed a reporting threshold; it may arrive by mail. Report the bonus either way — see how to report bank bonuses on your tax return.
• Watch for stray credits. A refund or deposit sent to a closed account is usually returned to the sender, which can take time.
• Accounts you forget aren't the same as closed. An account left open but unused can start charging fees, and after a dormancy period set by state law, its balance can be turned over to the state as unclaimed property.

Frequently asked questions

Is there a penalty for closing a bank account after getting the bonus?

Only if you close inside a window the terms specify. Many offers charge an early closure fee or reverse the bonus if the account is closed within a set period — commonly a few months, sometimes longer. After that, closing is normally free.

How long should I wait to close an account opened for a bonus?

Until after the latest of the early-closure-fee window, any clawback or "must remain open" window, and any balance-maintenance period in the terms — plus a week or two for pending transactions.

Does closing a bank account hurt my credit score?

No. Checking and savings accounts are not reported to the credit bureaus, so closing one does not affect your credit score.

Will closing an account show up on ChexSystems?

A voluntary closure with a zero balance is not a negative item. Accounts closed by the bank for cause, particularly with an unpaid negative balance, are what typically get reported.

Do I still get interest in the month I close my account?

It depends on the bank. Truth in Savings requires the bank to disclose whether accrued but uncredited interest is forfeited when you close early. If it is, closing just after the crediting date avoids losing it.