New Delhi. Closing a bank account seems easy. Just fill the form, transfer the balance and you are done. But many times customers have to pay such charges later, which they were not even aware of earlier. The reason is that some important things are not checked before closing the account. If your account is not in use for a long time or does not have the minimum balance, the bank may deduct some fees. Therefore, before starting account closure, it is always beneficial to go through a small checklist.
First check the minimum balance
If you have not followed the minimum balance rule of the bank in the last months, then penalty may have already been imposed. This charge is deducted before the account is closed. Therefore, please check your last 2-3 statements.
Is the account negative?
Many times, charges keep getting added to old or less used accounts without paying attention and the balance becomes negative. In such a situation, the bank asks to pay the amount before closing the account. Therefore, please check the balance status once.
Are there any debit card or other fees outstanding?
Even if you have not used the card for months, its annual fee remains applicable. Apart from this, SMS alerts, old check books or other service charges may also be pending.
Must update auto-debits
If EMI, SIP, insurance premium or electricity-water bills are being auto-paid from the same account, then all these will fail after the account is closed. Due to this there is a risk of penalty or policy lapse. Therefore, update the new bank information in advance.
Will there be account closure fees?
Most savings accounts close for free after one year, but some banks charge a fee for the first 6–12 months. There is usually no closure fee in salary accounts.
Little preparation, big savings
Before closing your account, do just 3 things – download the statement, clear the outstanding charges and update the auto-debit. By doing this there will be neither any unexpected outage nor any hassle later.
