I have a newer checking account which I'm looking to close. The bank has a $18 fee for closing the account early. If I empty the account of funds then close it, is the early closure fee something they would turn over to a collections agency or show up on a credit report? Or can I just tell the bank to pound sand?

What's "early" mean?

It'll be reported to check systems. So when you go to open a new account somewhere, they'll know you owe XYZ bank money.

Yeah - this really doesn't add up. Did you get a sign-up bonus that you have to pay back if you don't meet the terms, or something like that? I can't recall ever seeing a "early closure fee" for a checking account.

They are required to disclose this upon opening, so you were told. And in case you complain and say no one told you they'll trot out the account opening docs where you signed saying you knew all about all of the possible fees. If it were me I'd just leave $50 there and let it go dormant.
I ave no idea why people change banking accounts so often, I got mine in1973 from the Bank of A&M and still have it. It's gone thru a bunch of name changes and my account number keeps getting longer but the original 6-digit account # is still my last 4.

The bank you are moving the funds to may cover the fee for you. Its pretty common for banks to charge account closing fees.

I ran into something like this one time with an HSA account. An employer opened an HSA in my name without my authorization. I already had a third-party HSA account and had declined all offers from the employer for this new HSA account or automatic withdrawls to this new HSA (I managed the HSA contributions to the third party account, tax deductions, etc. on my own).

I only became aware of the new account because I received the debit cards for it in the mail. When I found out they had opened an account in my name, using my employment info, without my authorization - I was hot. Chewed out the company HR reps, personnel reps, and anybody else I could think to call. The company reps told me I had to call the bank to close the account. I questioned how they could open an account in my name, but couldn't close said account - never did get an answer to that.

So I called the bank, told them what had happened, and they said there was a closing fee (something like $20). I reminded them there was no current balance, never would be any balance, and there was a snowball's chance of me paying that. They "checked with the manager" and agreed to waive the fee and close the account.

woodiewood said:

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OldArmyCT said:

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They are required to disclose this upon opening, so you were told. And in case you complain and say no one told you they'll trot out the account opening docs where you signed saying you knew all about all of the possible fees. If it were me I'd just leave $50 there and let it go dormant.
I ave no idea why people change banking accounts so often, I got mine in1973 from the Bank of A&M and still have it. It's gone thru a bunch of name changes and my account number keeps getting longer but the original 6-digit account # is still my last 4.

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Yep, I have also been with my bank since 1972 and it is over in Lufkin. I think I have visited it two times since I moved to BCS in the 1990s. It been through four name changes. I have no need to step into a bank. I deposit a few checks I get with their online service. I never thought about making a change.

I would ask about the fee and if they showed it on the agreement I signed, I would just pay the $18 and close it and go on with life.

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Typically because a lot of the banks from the 70s aren't keeping up with or trying to be competitive with the offerings of the newer banks.

I doubt Bank of A&M has an automated setup to move xx% of your checking account balance over to their high yield savings account every week.

Why not just take whatever you have in the checking account and leave $18 in there before you close it since you already know the amount they charge for early closure fee. Failure to pay the fee, it will definitely reflect in your credit report (Chex system) and wherever you go to open an account, they would know you're owing bank XYZ money

I realize that there's a "it's the principle of the thing" element to this, but it seems like a lot of hassle over $18.

A checking account is a service, after all. At that rate, I'd just rather have the access to my money, my account closed, and nothing on my reports.