How To Close A Bank Account and Best 5 Advantages of Account Closure

How To Close A Bank Account

Nowadays every person is connected with the bank. Every person has at least one account in bank. But when one person has many bank accounts and it becomes difficult to deal with all the accounts, it is a very good option to close unwanted accounts. Today in this article you will learn how to close a bank account.

Too many savings accounts belonging to a single person can also lead to losses. Many types of charges banks are applying on the account. If you also feel that you have unnecessary savings accounts, you can close them.

However, closing a bank account is considered quite difficult. But, it is easy if the process is followed correctly.

See Also – What Do You Need To Open a Bank Account and 2 Best Ways to Open Account

What are the things to be observed while closing the saving account?

1. It is necessary to review the savings account before closing it. In this, see that your loan or EMI does not go to that account, the investment money does not get cut, or any trading account is linked to it. If not then you can close that account.
2. While closing the saving account, if you have any pending charges, they have to be paid.
3. In the case of a joint account, both persons have to be present while closing the account.
4. The reason for closing the account has to be given to the bank.
5. If you are using a checkbook, passbook, atm card, or any other cards, you have to deposit it in the bank.

Account closure procedure- 

1. First of all, to close the account, go to the bank and fill out the account closing form. Simultaneously, the account holder must write an application to close the account.
2. Then the bank will ask you the reason for closing the account.
3. If you have an account checkbook, and credit and debit card, deposit it in the bank.
4. According to the rules of some banks, if you close the account within 14 days to 1 year, you have to pay account closing charges.
5. And if you close your account after 1 year, you don’t have to pay any charges. But some banks forcefully collect charges while closing the account.
6. If the installment is cut from your account for loan or RD, first you have to give the number of another account to cut the installment. The account cannot be closed without going through this process.
7. If you have a joint account, both account holders must be present while closing the account. And both the signatures of the person appear on the form.
8. Account closing form requires your information photograph and signature.
9. Miner account can be closed by the guardian of the account if it is desired to close the account.
10. The bank closes the account by checking whether there are any pending charges on the account.
11. And if there is any balance in your account, it is transferred to you by check or to another account.
12. This is how your account is closed.

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Advantages of account closure-

1. Account can be monitored – If you have more than one account, managing all accounts becomes very difficult. Therefore closing an account like this allows one to focus on one account.
2. Ease of Transactions- If there is only one account, it becomes easy and convenient to transact from that account.
3. Less chance of error – If a single person has to handle many accounts, the chances of him making a mistake increase. Closing other accounts reduce confusion.
4. Charges – The account holder has to maintain a balance even on unwanted accounts and charges have to be paid if the minimum balance is not maintained. Otherwise, other charges are applied by the bank. But if there is only one account then the account holder can maintain the minimum balance.

Application for account closure –

Hon’ble Branch Manager,

State Bank of India,

Pratapganj Peth,

Satara.

Subject – Account Closure.

sir,

My name is ******* (name of account holder) and my savings account number is ****** (account number) with your bank for the last 2 years. I want to close this account as I don’t do much business on this account. However, I request you close this account as soon as possible.

your faithfully,

*********

(Signature)

Encl.

1. Passbook

2. adhar card xerox

3. pan card Xerox

4. atm card

5. Checkbook

Documents required for account closure –

You must have the following required documents to close the bank account. Which are as follows –

• Photocopy of bank account passbook of the applicant account holder
• ATM card
• Checkbook of the bank account
• Credit card of the bank account
• Applicant’s Aadhaar Card
• PAN card of the applicant

FAQ related to bank account closure

1. What are the documents required to close a bank account?

Ans. The list of documents required to close a bank account has been given to you in the above article.

2. How many days does the bank account close once applied?

Ans.  After applying for bank account closure, the bank has to close the customer’s account within 14 to 15 days following the guidelines of ans.RBI.

4. Does the customer need to return the ATM card after account closure?

Ans. Yes, when your account is closed, the customer needs to deposit his ATM card with the bank.

5. Can a customer reopen the same bank account once closed?

Ans. No, once the bank closes the account, it cannot be reopened. If you want to open an account, you have to open a new account again.

6. How to get the balance of the closed account?

Ans. A customer can withdraw the amount deposited from his closed account by cheque, demand draft, or cash.

7. Can a person open two bank accounts in his name?

Ans. No, a person can open only one bank account in his name. If a person has a relative or brother/sister, he can open a bank account in the name of his relative or brother/sister. Or can open a joint account.

Hope you liked our article and this article of ours must have solved your bank account closure problem, but if you have any doubt about the article, you can ask us by sending a message in the comment section. Thank you for reading our article.

How To Close A Bank Account