Savings Account: Before closing a bank account, know 4 things, ignoring it will prove costly...


In today's time, it is common for people to have more than one savings account. But sometimes the accounts become so many that it becomes difficult to maintain them. This mostly happens with those people who do private jobs and as soon as they change jobs, the company gets them to open an account in the new bank. To keep the account active, it is necessary to maintain a minimum balance in it and make transactions from time to time.


But when there are too many accounts, it is not easy to manage them all. In such a situation the account should be closed. If such a situation is with you too, then remember some things especially while closing the savings account.

Extract statement of account-
Before closing the savings account, make sure to get the complete statement of the account. You can either take a printout of it and keep it safe or download it and keep it somewhere safe. If your account is being used to pay loan EMI or for any other purpose, then you may need its statement in the future. It is important to keep it safe.

Check if there is any scheme link-
Check once that the account you are going to close is not linked to your EPFO or Income Tax Department account. Apart from this, there is no scheme attached to it, in such a situation, the money of the scheme will come to the same account on maturity and if the account is closed, your payment may get delayed. If so, then first update the account number, then close your savings account.

Pay pending charges-
Many times, if there is more than one account, it becomes difficult to maintain the minimum balance in the account. Banks will not allow closing the account if the account balance is in negative. In such a situation, sometimes the service charge or fees charged by the bank, etc. also become pending. In this situation, before closing the account, pay all the charges and then close the account. With this, your credit score will also be maintained.

Find out the closure charges-
Generally, banks do not charge any fee for closing a savings account within 14 days of opening it and for closing an account older than one year. You may have to pay closure charges if your account is closed between 14 days to 1 year. Know about account closure charges in advance and avoid closing the account within 1 year.


Method of closing account-
To close a bank account, you will have to go to the bank branch and fill out the closure form. You will also have to tell why you are getting your savings account closed. If you have money in your account and you want to transfer it to another account, then you will have to fill out another form. While closing the account you will be asked to deposit the unused checkbook and debit card. Don't forget to take these things with you.

PC Social media

From around the web