How To Close A Bank Account and 3 Enlightening Benefits

How To Close A Bank Account

Nowadays every person has a bank account. An account is opened in a bank for various schemes or many other reasons. But sometimes many bank accounts are opened by the same person and it becomes difficult for that person to manage these accounts. If one person has an account in ten different banks, then that person gets very confused. For this reason you must know how to close a bank account. In this article you can understand all the procedure of account closing and important documents for account closing.

How To Close A Bank Account

One has to remember many things like the account number of each account, balance amount, bank messages coming on mobile, passbook, checkbook, atm card, credit card, and some other documents of each account. Therefore, it is better to have important accounts in the bank rather than having many accounts. So it is better to close the unnecessary account.

Since the same person has multiple bank accounts, a minimum balance has to be maintained in those accounts. So our money gets stuck for no reason. Similarly, the bank imposes various charges on the account, so sometimes the money is deducted from the bank account, so it is advisable to close such an account.

Account Closure Process

If any person wants to close the account, first of all, the application for closing the account has to be submitted by the account holder. In this application, information about the account number, name of the account holder, the reason for closing the account, etc. is asked. But sometimes there are other things to consider while closing the account, the most important things are as follows

1. First the bank checks the reason for closing the account of the account holder.
2. Is there any checkbook credit card, passbook, or atm card in the account to be closed? The bank verifies this, and if so, the bank collects the same.
3. Some people open an account and close it immediately after a few days. In such cases, the bank’s stationery is wasted and the bank does not get any benefit from that account. So as per bank rules, if you close the account within 14 days to one year, the bank charges you for that.
4. If any kind of RD installment, loan installment or any other installment is deducted from the account that you are closing, the bank will ask the alternate account number to pay remaining installment or account holder has to pay the remaining installments in full while closing such account. You cannot close your account unless you first have to provide another account number to deduct the installments.
5. If you want to close a joint account, all the persons in whose name the account is held must be present and all must agree to close the account. Signatures of all account holders are mandatory while closing the account.
6. If the account of a minor is to be closed, the guardian of the minor must be present.
7. The bank closes your account after ensuring that there are no pending charges on your account.

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Benefits of account closure

One of the biggest and most important benefits of closing an account is that we can focus on the important account. And you can monitor your account. You can check your account balance or how much interest you are getting.

If the same person has to manage multiple accounts, the margin of error is high, but if the person operates a single account or a limited account, the chances of that person making a mistake are less, and the confusion of operating multiple accounts is reduced. That is, in short, there is accuracy in the work.

Due to multiple accounts, the account holder has no idea about the balance in which account or how much minimum balance has to be maintained. At such times the bank deducts the charges from the account or for some other reason, the bank also deducts the charges. So it is advisable to close such unwanted accounts.

Sample Application for Account Closure

Branch Manager,

State Bank of India,

Pratapganj Peth,

Satara.

Subject: regarding the closure of the account.

Sir,

I am an account holder of your bank and my name is XYZ. And my savings account number is 1234xxx in your bank. I am not using this account much and I can’t maintain the minimum balance on it, so this is my humble request to close this savings account and transfer the remaining amount to my other account number ABC1234 I enclosed all the details of this account. Please transfer the amount by NEFT.

Your faithful,

                                                                                      XYZ

Enclosure:

1. Passbook
2. Check Book
3. ATM Card
4. Aadhaar Card Xerox
5. PAN Card Xerox
6. Details of another bank account

How To Close A Bank Account

Documents required for account closure

1. Aadhaar Card
2. PAN Card Account
3. Passbook
4. Check Book
5. Credit Card
6. ATM Card and
7. applicant’s photograph

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F A Q

1. How many days does the account close?

The bank is obliged to close the account within 14 to 15 days after the account holder applies for closing the account. Sometimes the account is closed immediately but sometimes if the account is making loan installments or FD installments then such account is closed after proper processing. Goes and takes some time to close such an account

2. Which documents are required while closing the account?

While closing the account, documents such as account passbook, checkbook, ATM card, and credit card along with the account holder’s Aadhaar card and PAN card and account closure application, etc. have to be submitted to the bank.

3. Whether bank ATM card also has to be submitted while closing the account?

Yes, if an ATM card has been issued to that account while closing the account, the account holder should submit the return of the ATM card back to the bank.

4. Can we open the same account again after closing the account?

No, after closing the account we cannot open that account it is difficult to get the same account number. But we can open another account in the same bank, but we are given a new account number by the bank.

5. How can we get the balance after closing the account?

While closing the account we submit the account closure application to the bank which also mentions the form in which we want the account balance. We can get the balance through a demand draft check or cash or account transfer.

6. Can we open two personal accounts in the same bank?

It is not possible to open two accounts in the same name with the same bank, but we can open a joint account.

7. Does the bank charge a fee for closing a bank account?

Yes, many banks charge some fee from the account holder while closing the account.