To close a bank account, you’ll typically need to visit their nearest branch or give a written request. Maybe you’ve determined to change banks to benefit from higher rates of interest or options. Or perhaps you might be moving to a different country, or open separate ones. For no matter cause, you probably have determined to change banks, you could need to close your old bank account. Except for contacting your bank, there are just a few different steps you need to take.
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Steps to close a bank account
Listed below are the steps you need to follow to completely close your bank account.
- Visit your bank to close your account : You can’t close your bank account on-line. You’ll need to visit the home branch or the nearest branch to obtain the Account Closure Form.
- Fill the Account Closure Form : Ask bank representative to give the account closure form or you can obtain the same from their website. If it’s a joint account, then all account holders must give their consent by signing the account closure form. Fill the account closure form with details like :
- Account Holder’s Name / Joint Holders Name
- Account Number
- Contact Details
- Reason to close the bank account
- Signature
- Surrender Account Deliverables : Conventionally, banks will ask you to return the unused cheque books, debit cards, passbook and ID proof. You’ll have to give up all these with the account closure form. In some circumstances, the bank may additionally ask you to destroy these paperwork by your self.
- Account Closure Charges, if any : It has been observed that almost all banks levy an account closure charge for those who close it within a year from opening. HDFC Bank, for instance, doesn’t levy a closing charge for those who close the account inside 14 days of opening it. From day 15 to 6 months it charges Rs. 1000/- plus GST and from 6 months to 12 months it charges Rs. 500/- plus GST and no closure charges beyond 12 months. Nonetheless, it’s free past the one-year mark. Banks are free to levy any closing expenses as per their monetary scenario. So some banks might charge high account closure charge while some would possibly fully waive it off.
Conclusion
As soon as all documents are submitted, the financial institution will verify for any pending costs related to the account. Ask the bank for an acknowledgement stating closure of the account. It’s advisable to keep the copy of bank account statement, which signifies the closure. So its worth going through that extra effort to close the bank account.