What is an early termination fee?
A penalty charged if you close a bank account too soon after opening it.
Some banks will charge you a fee, usually somewhere between $25 and $50, if you close your account too soon after opening it. The window is typically 90 to 180 days. It's the bank's way of clawing back the bonus from people who open, grab the cash, and immediately leave.
This is one of the most important things to check before you open a bonus account. On a smaller bonus, that fee can take a real bite. On a really small bonus, it can wipe out most of what you earned.
The standard approach is to note the hold period required for the bonus and the early closure window, and then wait until both have passed before closing. Some offers are explicit about this in their terms. Others aren't, and the early closure fee is buried somewhere in the account agreement.
When in doubt, a quick search for the bank name plus early account closure fee will usually turn up what other people have found.
Other Terms