Many reasons such asinterest ratesThe Commission's proposal is based on the following principles:multiple bank accountsmay encourage a customer to close a savings bank account. So if you want to close one orchange bank, you must followa few stepswhich may vary from one establishment to another.
In this article, let us discover thecurrent procedureto be followed to close savings accounts, a booklet A and other savings booklets.
What are the prerequisites for closing a savings account?
When you decide to close your account in a savings bank, some steps must be taken so that you can move forward with your decision.
First, you mustphysically return to the bank. Generally, bank account closure cannot be done online for strategic reasons. However, some banks don't have an agency appointment and allow you to close your savings account online by following a few simple steps. Then you have to make sure that youyour account status bankingbefore you terminate your contract.
If your account is dormant, that is, it has remainedinactiveFor a long period of time, you must first make it active so you can close it later. In addition, if you have a savings accountattached, both co-owners must be present at the time the account is closed. In some cases one of the partners is not present, some banks require a «Non-Objection Certificate » (NOC).
In addition, if you have contractedloan,credit card services, a deposit and trading account or a deposit facility, you must be sure what you will do with it before you terminate the account. Keep all official documents like thePAN map(Permanent Account Number or Permanent Account Number), theAADHAR card(if you are in India) and others at hand while you start the process.
Also, be sure tostop all paymentsand automatic withdrawals from the account you want to close and link the payment process to another bank account or cash fund. Don't forgetkeep all your savings account statements,because you might need it in the future. In addition to these cases, you can contact the bank manager who will guide you on the procedure before closing the account.
The last step to follow before the cancellation of the savings agreement with your bank is the transfer or transfer of money from the savings account you want to close to another. If it isWage savings account, make sure to submit in ashort deadline, details of a new bank fund to youremployer. This will allow you to continue to collect your income and obtain a salary credit in a timely manner.
Once these conditions are met, you can go ahead and cancel the savings account. It should be noted that, although the various banks have their own terms of account termination, some banks havebasic stepsremain the same.
How to close a savings account?
Online or in an agency, you must follow (as a customer) different steps for closing your savings account.
The termination process begins with thesending a recommended letter. Indeed, send aaccount closing letterat your bank, clearly indicating the reason for the closure. The format of the document can be obtained either from the bank itself or online on its website. In the case of an attached account, each holder must write the mail. OneNOCcan also function as described above.
Afterreceipt of the request, the establishment will invite you in an agency. Once on site, present the required documents, such as your ID, as well as the bank kit including the booklet, thecheque bookAnd the debit card. The bank agent will check your account history to ensure thatno additional samplingmust not be made: debts, fines or failure to pay fees on the bank account.
If your account is linked to acredit card, a Demat account, a loan, an FD account or other financial products, you mustDissociate. After submitting the documents, cheque book and cards, you will have to payaccount closing costs. Again, the cash amount of the closing fee varies according to the bank, depending on the duration of the account and the type of account.
Finally, the bank agent will give you backacknowledgement of receiptaccount closing. It takes about7 to 10 daysfrom the date of signature to terminate an account. However,delai may vary from bank to bank. Once your account is closed, you will receive a text message or email on your mobile phone number or address.mailelectronic records.
Furthermore, it is important to note that while most banks in the country follow the above procedure, some do not.
Opinion on the closure of a bank savings account
Proceed with thecancellation of savings accountsis the wayrecommendedif you want to change bank and opt for aneobank online. The closure procedure often differs according to the institution chosen. However, some approaches remain similar, from sending the closing letter todate of terminationactual, including the acknowledgement of receipt.
However, it is recommended thatopening of a new bodyin a banking area or a financial servicebefore initiating the procedures. These may include other savings booklets such as theBooklet A. You will then have the opportunity to transfer your money there and empty the balance of the bank account to be condemned. In addition, in the case of an attached bank account, each holder must act, in which case a NOC will be useful.
All in all, knowing how to close a savings account is a favorable asset for any bank customer, although the process may vary depending on the institution.