How to close an Ally account

You can close an Ally Bank account online, by phone, or by mail. The fastest method is calling Ally's customer service at 1-855-492-5559, where a representative can process the closure when ready and answer questions about your balance or pending transactions. If you prefer to do it yourself online, you can initiate the process through your Ally account dashboard, though you may still need to call to confirm. Closing by mail is possible but takes longer — you'll send a written request to Ally's address and wait for confirmation.

Before you close, make sure your account balance is zero. If you have money in the account, transfer it to another bank first. If you have a negative balance (you owe Ally money), you'll need to pay that before closing. Any pending direct deposits or automatic payments should be redirected to your new bank account to avoid missed payments or lost funds.

Key Takeaways

  • Call Ally customer service at 1-855-492-5559 to close your account the same day, or start the process online through your account dashboard.
  • Transfer your remaining balance to another bank account before closing, and redirect any automatic payments or direct deposits.
  • If you have a negative balance, you must pay it off before Ally will close the account.
  • Ally will send you written confirmation of the closure, which you should keep for your records.

Steps to close your account by phone

Call Ally customer service at 1-855-492-5559. Have your account number ready. A representative will verify your identity by asking for your Social Security number, date of birth, or other personal information. Tell them you want to close your account.

The representative will check your account balance. If you have money in the account, they'll ask where you want it sent — you can have it transferred to another bank account or mailed to you as a check. If your balance is negative, they'll tell you how much you owe and accept payment over the phone using a debit card or bank account. Once everything is settled, they'll process the closure and give you a confirmation number. Write this down.

The account will close within one to three business days. You'll receive written confirmation by mail. Keep this confirmation letter in case you need proof that the account was closed.

Steps to close your account online

Log into your Ally account at ally.com. Go to your account settings or profile menu — the exact location varies depending on whether you have a checking account, savings account, or both. Look for an option labeled "Close Account" or "Account Settings."

Ally's online closure tool will walk you through the process. You'll confirm your account balance and choose how to receive any remaining funds. If your balance is zero or negative, you may be able to complete the entire closure online. If you have a positive balance, Ally will ask you to transfer the money out first or will offer to mail you a check.

If the online tool doesn't let you finish, or if you run into errors, you'll need to call customer service to complete the closure. This is common — some account types or situations require a phone call to finalize.

What to do with your remaining balance

If you have money in your Ally account, you have three options: transfer it to another bank account, have Ally mail you a check, or withdraw it in person at an ATM if you have an Ally debit card.

The fastest option is an electronic transfer to another bank. You'll need the routing number and account number of the bank you're transferring to. This usually takes one to three business days. If you choose a check, Ally will mail it to your address on file — this takes five to ten business days. If you have an Ally debit card, you can withdraw cash at any ATM, though there may be limits on how much you can withdraw in a single day.

Do not close your account until the money has left Ally's system. If you close with a pending transfer, the transfer may fail and your money could be stuck.

Redirecting direct deposits and automatic payments

Before you close your account, change the bank account information for any direct deposits or automatic payments. This includes paychecks, government benefits, insurance refunds, bill payments, loan payments, or subscription charges.

Log into each service that deposits money to your Ally account — your employer's payroll system, your bank's bill pay portal, or the website of whoever sends you regular payments. Update the account number and routing number to your new bank. Do this at least one week before you close your Ally account to make sure the change goes through.

For automatic payments you make from your Ally account, log into each creditor or service provider and update your payment method. This includes credit card payments, utility bills, insurance premiums, or loan payments. If you miss updating even one payment, it could bounce and damage your credit or result in late fees.

If you have a negative balance

A negative balance means you owe Ally money — usually because a transaction posted after your balance hit zero, or because of an overdraft fee. Ally will not close your account until you pay this amount in full.

When you call to close, the representative will tell you the exact amount owed and the reason. You can pay by debit card or by authorizing a withdrawal from another bank account. Payment is usually processed the same day. Once the balance is zero, the account closure can proceed.

If you're unsure why you have a negative balance, ask the representative to explain each charge. Sometimes the issue is a pending transaction that hasn't posted yet, and waiting a few days will resolve it.

After your account is closed

Ally will send you written confirmation of the closure by mail. This letter will include the date the account was closed and your final balance. Keep this letter for at least one year. If you ever need to prove the account is closed — for tax purposes, to dispute a charge, or for another reason — you'll have documentation.

Your Ally debit card will stop working when ready after the account closes. If you still have the card, you can cut it up or throw it away. You don't need to return it to Ally.

If you had automatic payments set up and forgot to redirect one, you'll see a failed payment notice from that creditor. Contact them right away to update your payment method and avoid late fees or service interruptions.

Frequently Asked Questions

Can I reopen my Ally account after closing it?

You can open a new Ally account at any time, but it will be a separate account with a new account number. Ally does not reopen closed accounts. If you closed because you were unhappy with the service, consider whether the issue has been resolved before opening a new account.

What happens to my Ally debit card after I close the account?

Your debit card will stop working when ready. You don't need to return it to Ally — you can destroy it. If you have pending transactions that haven't posted yet, they may still attempt to process and will be declined.

How long does it take to close an Ally account?

If you call, the account closes within one to three business days. If you close online, it may take longer depending on your account type. You'll receive written confirmation by mail within one to two weeks.

Will closing my Ally account hurt my credit score?

Closing a bank account does not directly affect your credit score. However, if you have an Ally credit card, closing that card could have a small impact on your credit. Closing a checking or savings account has no credit effect.

What if I have a pending direct deposit when I close my account?

If a direct deposit is scheduled to arrive after you close, it will be rejected and returned to the sender. This is why you should redirect direct deposits to your new bank before closing. Contact your employer or the organization sending the deposit to confirm the new account information was received.