Closing an Ally account takes about five to ten business days once you've withdrawn your money and stopped all automatic payments
Ally Bank is an online-only bank, so you can't walk into a branch to close your account. Instead, you'll contact them by phone, find message, or in-person at one of their rare physical locations if you live near one. The process itself is straightforward: confirm you have no pending transactions, move your remaining balance out, and request the closure. Ally will then freeze the account and send you written confirmation.
The timing matters because any automatic deposits or payments tied to your Ally account need to be redirected before you close it. If you miss this step, payments can bounce and create overdraft fees or missed bill payments elsewhere. That's the main reason people run into trouble — not the closing itself, but the setup work beforehand.
Key Takeaways
- Stop all automatic deposits and payments at least five business days before you request closure, or redirect them to your new bank account first.
- Withdraw or transfer your full account balance before closing, since Ally will not hold money in a closed account.
- Contact Ally by phone at 1-855-435-2559, through your online account's find message center, or visit a physical location if one is near you.
- Ally will send you written confirmation of the closure, which you should keep for your records in case of billing disputes later.
Redirect automatic payments and deposits before you close
This is the step that causes the most problems. If you have direct deposit from your employer, automatic bill payments, or recurring transfers set up with your Ally account, those need to move to another account or stop entirely before you close. Ally will not process transactions on a closed account, so a paycheck or bill payment attempt will fail.
Start by listing every automatic transaction tied to your Ally account. Check your last three months of statements for anything recurring — paychecks, insurance premiums, loan payments, subscription services, transfers to savings accounts. For each one, you'll need to update the payment information at the source. If it's your paycheck, log into your employer's payroll system and change your direct deposit bank details. If it's a bill payment, contact the company or log into their website and update your bank account there. This usually takes effect within one to two pay cycles, so do this at least five business days before you plan to close.
If you're moving to a new bank, you can set up your new account first and redirect everything there before closing Ally. If you're closing Ally because you're moving away from online banking entirely, contact each company individually and ask them to mail you a check or set up a different payment method.
Transfer or withdraw your remaining balance
Ally will not keep money in a closed account, so you must move your balance out. You have two options: transfer it to another bank account you own, or withdraw it as a check or cash.
To transfer electronically, log into your Ally account and look for the "Transfer" or "Move Money" option. You can link an external bank account (one at another bank) and move your full balance there. This usually takes one to three business days. Alternatively, you can request a check from Ally by phone — they'll mail it to your address on file, which typically takes five to seven business days. If you need the money faster, visit an Ally Bank location if one is near you and withdraw cash directly.
Do not close your account until the money has actually arrived in your new location. Verify the transfer went through or the check cleared before you proceed with closure.
Contact Ally to request account closure
Once you've moved your money and stopped all automatic transactions, contact Ally to close the account. You have three ways to do this:
- By phone: Call 1-855-435-2559. This is the fastest method. A representative will confirm your identity, verify the account has a zero balance, and process the closure on the spot. The call usually takes five to ten minutes.
- Through find message: Log into your Ally account online and send a message through the find message center requesting closure. Ally will respond within one to two business days, but this method is slower than calling.
- In person: If you live in or near a city with an Ally Bank location, you can visit and request closure there. Ally has physical branches in only a handful of cities, so this option is rarely available.
When you contact them, have your account number ready. The representative will ask you to confirm the account balance is zero and that you want to close it. They may ask why you're closing — you don't have to give a detailed reason, but a straightforward answer like "I'm switching banks" or "I'm closing all my accounts" is fine.
What happens after you request closure
Ally will send you a written confirmation of the closure to your mailing address on file. This letter usually arrives within five to ten business days. Keep this letter for your records. If you ever dispute a charge or need to prove the account is closed, you'll have documentation.
After closure is processed, the account will no longer appear in your online login. If you try to log in, you may see a message that the account is closed or you may not be able to access it at all. This is normal. Do not be alarmed if you receive a final statement in the mail — Ally sends these automatically for closed accounts, and it will show a zero balance.
If you notice any charges or activity on the account after you've closed it, contact Ally when ready. This is rare, but it can happen if a payment processes after the closure request but before the account fully closes. Ally can reverse the charge if you report it quickly.
What to do if you have a loan or credit card with Ally
Closing a checking or savings account is different from closing a loan or credit card. If you have an Ally auto loan, personal loan, or Ally Bank credit card, those accounts are separate and closing your bank account does not close them. You'll need to handle each one separately.
For loans, you can keep making payments even after your bank account is closed — just set up a new payment method (another bank account, debit card, or check). For credit cards, the same applies: you can continue using and paying the card with a different bank account. If you want to close a loan or credit card, that's a separate process and you should contact Ally about each product individually.
Frequently Asked Questions
What if I have pending transactions when I try to close?
Ally will not close the account until all pending transactions clear. If you have a check you wrote that hasn't cleared yet, or a payment that's in progress, wait for it to complete first. This usually takes three to five business days. Then request closure again.
Can I reopen my Ally account after I close it?
Yes, you can open a new Ally account at any time. However, Ally may review your banking history, and if you closed the account due to fraud or disputes, they may decline. If you closed it for a normal reason like switching banks, reopening is straightforward.
Will closing my Ally account hurt my credit score?
No. Closing a bank account does not affect your credit score. Credit scores are based on credit accounts like loans and credit cards, not checking or savings accounts. Closing a bank account has no impact on your credit.
What if I forgot to redirect a bill payment before closing?
Contact the company that sends the bill when ready and provide a new payment method. Explain that your bank account closed and you need to update your payment information. Most companies can update this within one business day. You may incur a late fee if the payment fails, but you can often get it waived by explaining the situation.
Do I need to close my account in person?
No. You can close your Ally account entirely by phone or find message. In-person closure is an option only if you live near one of Ally's rare physical locations, but it's not required.