#Kolkata: Employed persons have multiple bank accounts. One is a savings account and the other is a salary account. But what happens to those accounts when you join a new job or move to another city?
Some banks convert zero balance salary accounts into regular savings accounts after a few months. Because no salary is credited to that account during this period. Bank expects customers to maintain minimum average balance in Non Salary Savings Accounts. Now charges are deducted or fined if the minimum average balance is not maintained as fixed by the concerned bank. Financial experts say that it is better to close the salary account if the salary does not go into it. There are a few things to consider before closing a bank account. They were discussed.
First turn off all automatic debits: Automatic debit closure or anything related to that should be de-linked before closing the bank account. Any securities trading or credit card linked to the account. If the account is linked to pay monthly loan installments, invest in mutual funds or recurring deposits, a new bank account number is required to debit the lender or depository institution. Bank issues a D Link Account form while closing the account. All the information has to be given there. It takes approximately one week to 10 days to close the credit or investment linked to the account. Once they are done, the account can be closed completely.
Account closure form to be submitted: To close the account, the customer has to visit the bank in person. There D link form, unused check book, debit card along with ‘Account Closure’ form should be filled and submitted. In the form, the reason for closing the bank account must be given. Besides, an application form can be submitted to the bank manager along with the account details stating the reason for closing the account. In case of joint account the form or letter has to be signed by all the account holders. Another account details are also required for bank account deposit transfer. Demand Draft or National Electronic Fund Transfer (NEFT) etc. can be selected as payment mode while closing the account. And if the balance is less than 20 thousand rupees, it is paid in cash. After closing the account the last bank account statement should be carefully retained for future reference.
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New Account Details Update: After closing the old salary account, the employer has to provide all the details of the new account for future credit. Similarly, if the pensioners close the account, the details of the new account should be reported to the government. If the utility bill payment is linked to the newly closed bank account, the new bank account details must be provided for pre-authorized debit.
Need to know about closure charges: Bank does not charge customers for closing savings account within 14 days of opening. More than 14 days but less than a year, most banks deduct a fixed amount. So it is important to choose the right bank while opening an account. For example, State Bank of India charges Rs 500 as a charge from customers if they close the account more than 14 days but before one year. After completion of one year no further charges are charged. It may be noted that account opening, check book, debit card issuance charges are levied from customers to recover these account closure charges.
What you need to know: Once an account is closed, it cannot be reopened. So you should act wisely. Any arrears should be settled before closing the account. Another thing to keep in mind is that the balance should be zero before closing the account. Complete bank statement should be taken along with it.
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Tags: Bank Account, Bank Account Closing
