Normally any bank account levies a closure charge if it is closed within one year from the date of opening. If you want to avoid this charge, then you should avoid closing the account for 1 year from the date of opening. If you do not want to do this, then close the account by paying the closure charge.
Before closing the savings account, it is important to take care of some special things.
different in one bank or more than one bank savings account Keeping it is a good thing in some ways. This has many benefits. Take advantage of bank offers. Many people keep their money by opening accounts in different banks. This gives the benefit of the offers of all banks. Also, if one bank comes to a standstill, then there is no fear of drowning all the money. However, there is also the disadvantage of having more accounts in more than one bank. If all the accounts are not maintained properly then penalty has to be paid. In such a situation people also close their accounts. If you are also among such people who are going to close the savings account, then definitely keep some special things in mind.
1-Keep a record of the bank statement
First check the balance of the account you want to close. Check balance, download statement and keep statement records of last 2-3 years with you. This will come in handy for future reference. If money has been transferred to an account and the information is needed later, then only the record of the statement will be useful. This statement will also be useful in filing income tax return.
2- Pay the service charge left
If your account balance is negative, then the bank will not allow the closure of the account. Negative balance happens because you have not kept the minimum balance in the account. There will be no service charge or fees remaining. Account being negative means your credit score will also be bad. To avoid this, first of all pay the service charge etc., only then close the account.
3-Standing instruction and automated clearance
If there is any EMI running on the savings account, bills and monthly subscription, then cancel such standing instruction first. If automated clearance is linked to the savings account, then cancel that too first. Closing the account without canceling may result in missed payment cycle. With this your credit report will go negative.
4-Account Closure Charge
Many banks charge account closure charges from customers. This charge is levied only for a specified period from the date of account opening. Normally any bank account levies a closure charge if it is closed within one year from the date of opening. If you want to avoid this charge, then you should avoid closing the account for 1 year from the date of opening.
5-Update account details
The savings account which you are going to close, may be EPFO, insurance policy, income tax department’s savings scheme is running on it. In such a situation, before closing the account, you must update any other account in all these schemes. Otherwise, the benefits of the scheme will not be available after the account is closed. Many people run Systematic Investment Plan ie SIP of Mutual Fund on Savings Account. When you withdraw money from a mutual fund, that money will go to the same account that will be linked to it. In such a situation, closing the account will make it difficult for you to get money.