Here's What Happens When You Open and Immediately Close a Bank Account

Banks offer big account bonuses. Chase offers $300 to new customers as of the time of writing, and SoFi® (member FDIC) is offering $300 to customers who set up direct deposits.¹ Sure, there are terms and conditions (aren't there always?), but there's more to it than that.

You might think you can game the system by opening a bank account, snatching the bonus, and closing the account right away. Sometimes, you can. But banks tend to discourage this in several ways. Mostly, it comes down to minimum holding periods and early closure fees.

Promotions typically require users to keep deposits in accounts for months or years to earn the full payouts. Some banks charge hundreds of dollars in early closure fees for closing accounts too soon.

Read on to find out what happens when you open and immediately close a bank account.

You may forfeit your new account bonus

Banks don't advertise this on their promo pages, but here's the truth: Almost every new account promotion requires you to maintain your account balance for six to 12 months to earn your bonus. So, if you get a $300 bonus for depositing $10,000, you probably need to keep that $10,000 in your bank account for six to 12 months, or else the bank will cancel or revoke your payout.

One real-life example: Right now, Axos Bank offers a $500 cash bonus to new checking account users who have at least $1,500 in qualifying direct deposits for five months. The catch is, you must maintain an average minimum daily balance of at least $3,000 for six months.

Minimum balance requirements are widespread and not unique to Axos Bank. Before you open and immediately close a bank account, read the fine print. It could save you a lot of time.

You may pay early closure fees

There's something else banks don't advertise: fees for closing your account too early. These usually aren't specific to promotions; they're just fees wrapped up into opening bank accounts.

Read the fine print for early closure fees. Or check out well-researched pages that cover the latest bank bonuses in plain English. Two minutes of research could save you hundreds of dollars.

You may become ineligible for future new account bonuses

Fool your bank once, and you'll have a trickier time repeating the act. Some banks specify that you can't get a new account bonus when you've already closed an account with them.

Take Chase. Right now, Chase is offering a $300 bonus to users who open a new Chase Total Checking® account. But hidden in the fine print: You can't snag the bonus if you've closed a Chase account within 90 days -- or three years if your account closed with a negative balance.

What happens next

Once you close your bank account, that's it. You may pay early closure fees or lose your bonus, but your credit score should stay the same (closing out a credit card is a bit more complicated). Credit bureaus don't pay attention to your checking accounts (or lack thereof).

Closing an account is often permanent; you may be unable to reopen your bank account down the road. If you want to reopen an account, you'll need to reach out to your bank for next steps.

Think twice before opening a new account for the bonus and immediately closing it. Chances are high you could forfeit your bonus. Closing fees are also something to watch out for.

And FYI, the best checking accounts are worth opening even when they offer $0 in bonuses.