In today’s scenario, many people have more than one bank account, either two accounts in the same bank or accounts in different banks for personal and work reasons.
Despite the many benefits of having more than one bank account, managing them is a major challenge for the average person today. Because banks keep bringing changes in the transaction terms.
As interest rates, minimum balances, and penalties continue to rise, some prefer to close unused bank accounts.
It is advisable to ‘close’ unused and unnecessary bank accounts to avoid penalties and other charges for non-compliance with the minimum balance.
You can close your bank account directly by visiting your bank branch or by contacting customer care.
Some steps to safely close a bank account
1. Balance, Monthly Statement
It is important to check the balance of your savings account that you want to close. Check the balance and also download the transaction details of at least last 2-3 years in that account. Those transactions should also be verified once. This will help you to check your future expenses and file income tax returns.
2. Unpaid Dues, Service Charges
Penalties will be levied if your bank account balance is insufficient or other service charges are not paid. You cannot ‘close’ your bank account if you make such a deduction and have a negative balance. So, pay the amount due to the bank properly and close the account. Otherwise it will affect your transaction related CIBIL score.
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3. EMI account
This bank account can be linked to various apps or credit cards to pay loans or other payments through EMI mode.
Therefore, they should be checked and switched from ‘automatic debit’ mode. Otherwise you can link a bank account that you will use regularly instead.
4. Account Closing Fees
Banks generally charge a fee to ‘close’ a savings account within a year of opening it. So, within one year you must pay the fee to close the bank account. To avoid this fee you have to wait till the end of one year.
5. Government based services
If the bank account for which you want to stop the service has been linked to government related services including provident fund, income tax account, insurance, funds from government schemes, you should delete it properly and link the bank account that you will continue to use instead. The bank account should be ‘closed’ only after confirming the change in all government related services. This will help you to proceed with the government services without any problem.
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