How to Close a Bank Account (2024)

FAQs

Is there a fee for closing a bank account? ›

Most of the time, you won't be charged a fee simply for closing a bank account, although there are a few exceptions.

Once you're certain there's no more activity on the old account, you may close it online, over the phone or at a local branch. You'll likely need to complete a closing request form and have it notarized. A notary should be available at the bank. Ask for written confirmation of the account closure.

Call your old bank or send a secure message through your online banking portal to confirm there are no pending transactions or outstanding charges and the account balance is zero. Then you can ask the bank to close the account. Some banks require written notice that you want to close your account.

Visit the nearest branch and submit the closure form in person. You have to show the KYC documents, like Aadhar and PAN, of all the account signatories while submitting the account closure request. You need to submit all the unused cheque leaves and your passbook to the bank at the time of closing the Current Account.

Your bank account could be closed by your bank for many reasons, including inactivity or low usage. Banks aren't required to give notice when they close an account. Consult your bank's deposit account agreement for guidelines on when an account might be closed.

When closing a bank account, a common question people ask is whether it's bad for their credit scores to close a bank account. Fortunately, closing a savings or checking account that's in good standing won't hurt your credit in any way.

Generally, the bank will not close a checking account that is in an overdraft status. Such an account will be kept open until it is brought current. Then, the account can be closed. Review your deposit account agreement for policies specific to your bank and account.

In many cases, it should take only one or two days to close a bank account. But the process could last longer, perhaps several weeks, if any glitches occur. For instance, the closure could be delayed if you didn't leave enough money in your account to cover automatic payments or withdrawals.

You may need to clear your dues and pay closure fees, if any, before the bank processes your request. Usually, it takes about a week for the SBI bank to close the account after submission.

Can I close my bank account without visiting the bank? ›

Many banks provide online banking services that allow you to manage your account from anywhere, including closing it. You can close the account by logging into your online banking account, going to the "Close Account" option, and following the instructions. However, not all banks may provide this option, so c.

If the account has annual fees or high interest rates, it may be worth closing it to save money in the long run. But if it's an account that you've had for a long time and it's done well for your credit history, it might be better to keep it open.

You will not have to pay any amount if you close the account within 14 days of opening it or after 12 months of opening the account. However, you must pay Rs. 1,000 upon closing the account between 15 days and 6 months and Rs. 500 upon closing the account between 6 months to 12 months.

You can usually close a checking or savings account at any time, unless the account is overdrawn. Closing some accounts, such as certificates of deposit (CDs), may result in a penalty or early withdrawal fee. Closing a bank account won't impact your credit unless it makes you miss pre-authorized bill payments.

These costs come about through the process of creating your loan. Closing costs cover the fees for services like your home appraisal and searches on your home's title. The specific closing costs you'll need to pay depend on the type of loan you borrow and where you live.