Have you ever felt the need to close a bank account? Maybe you have found a better banking option, or perhaps you are just trying to simplify your finances. Whatever your reason, closing a bank account can seem daunting. You might wonder about the process, the paperwork or what happens to your money. But don't worry; it is simpler than you think. In this guide, you will understand how to close a Bank Account online in 8 easy steps.
How do you close a Bank Account?
Understanding how to close a Bank Account involves a few critical steps.
First, clear all pending transactions. This includes checking for any direct debits or standing orders that might be
active.
Contact your bank for detailed information on the requirements to close a Bank Account. It's important to know that
Axis Bank allows you to close accounts at any branch, answering the question affirmatively: can you close your Bank
Account from any branch?
Steps on how to close a Savings Account
Closing a Savings Account requires careful consideration and a series of steps to ensure a smooth transition. Here's
an expanded guide to help you through the process:
1. Open a new Bank Account: Before initiating the closure of your existing Savings Account,
consider opening a new Bank Account. This step is crucial to secure a
destination for your funds and maintain your financial activities without interruption. Choose an account that
aligns with your current financial needs, possibly one offering better interest rates or lower fees.
2. Cancel recurring payments and direct deposits: Review your existing Savings Account for any
recurring payments or direct deposits. These might include utility bill payments, subscription services, or salary
credits. Ensure that you redirect these transactions to your new Bank Account. This prevents missed payments and
ensures your financial obligations continue uninterrupted.
3. Transfer or withdraw your money: Once your new account is active and you have redirected all
recurring transactions, transfer the funds from your old Savings Account. You can do this via online banking, a cheque, or a direct transfer. If the
balance is small, you might choose to withdraw the amount in cash. However, for larger sums, a transfer is safer and
more practical.
4. Contact your old bank: With your funds safely transferred, reach out to your old bank to inform
them of your decision to close the account. You can typically do this via a formal letter, a visit to the branch, or
in some cases, through an online process. To close a Savings Account in Axis Bank, you need to submit the Account
closure form, your debit card cut into 4 pieces and unused cheque leaves.
5. Obtain written confirmation: After closing your account, request a written confirmation from the
bank. This document proves that you have closed your account and fulfilled all obligations. It's an essential record
to keep, just in case there are any discrepancies or queries in the future.
6. Check for any fees or charges: Be aware of any potential fees associated with closing your
Savings Account. Some banks may charge a closure fee, especially if you close the account soon after opening it or
if it falls below the required minimum balance.
7. Dispose of your Chequebook and Debit Card securely : After closing your account, securely
dispose of any physical components like your chequebook and debit card. Cutting up your debit card and shredding your chequebook can prevent any potential
fraudulent use.
8. Monitor for any unexpected transactions: Finally, keep an eye on your statements for a short
period after closure. This ensures that no unexpected transactions occur post-closure, and if they do, you can
address them promptly.
By following these steps, you can close your Savings Account confidently and securely, ensuring a hassle-free
transition to your new banking arrangement.
How to close an inactive Bank or Overdrawn Account
Closing an inactive or Overdrawn Bank Account demands a different approach than closing a regular account. Here's an
elaborate guide on how to navigate this specific scenario:
1. Assess the account status: Begin by determining the exact status of your account. An inactive
account usually refers to an account that hasn't seen any activity for a long time, whereas an overdrawn account has
a negative balance. The approach for closure will vary based on this status.
2. Address the overdrawn balance: If your account is overdrawn, the first step is to bring the
balance to zero or positive. You might need to deposit enough funds to cover the negative amount. This step is
crucial because most banks won't close accounts with outstanding balances.
3. Reactivate inactive account:For an inactive account, you may need to first reactivate it. This
could involve making a small deposit or withdrawal to show activity or simply contacting the bank to inform them of
your intention to use or close the account.
4. Contact your bank for specific procedures: Each bank has its own set of rules for closing
inactive or overdrawn accounts. Get in touch with your Bank to understand the specific requirements. This might
include filling out specific forms, providing identification, or even paying a fee in some cases.
5. Get written confirmation: Once you've successfully closed the account, ensure you receive
written confirmation from the bank. This document is important as proof of closure and to ensure no future disputes
arise regarding the account.
6. Understand the RBI Guidelines: Familiarize yourself with the RBI (Reserve Bank of India)
guidelines regarding the closure of bank accounts, particularly overdrawn accounts. This will help you understand
your rights and the bank's policies.
7. Monitor for closure confirmation and statements:After requesting closure, keep an eye out for
confirmation from the bank. Also, monitor for any additional statements or notifications to ensure there are no
lingering issues or unexpected charges.
Reasons for closing a Bank Account
1. High fees: You might find that your bank charges high maintenance fees, which can accumulate over time, prompting you to consider switching to a more cost-effective option.
2. Poor customer service: If your bank consistently provides unsatisfactory service or lacks responsiveness, you may decide to move your account elsewhere.
3. Limited accessibility: You might choose to close your account if your bank has few branches or ATMs nearby, making it inconvenient to access your funds.
4. Lack of features: Some customers close their accounts because their bank does not offer desired features like mobile banking, competitive interest rates or rewards programs.
5. Mergers or acquisitions: When banks merge, you may decide to close your account due to changes in policies or fees that no longer suit your preferences.
Conclusion
The decision to close a Bank Account, when necessary, marks a significant step in managing your financial journey. At
Axis Bank, we understand the importance of this decision and strive to make the process as smooth as possible for
our customers. Our commitment extends beyond providing a wide array of banking features and benefits; we aim to
offer a closure experience that is as seamless and stress-free as the one you encountered when you opened your
account with us.
While Axis Bank stands ready to assist you through the account closure process, we also encourage you to explore our
various Axis Bank Account options.
Also Read: Complete
guide on how to open a Savings Account in 5 easy steps
Frequently Asked Questions
Does closing a bank account hurt your credit?
Closing a bank account typically doesn’t impact your credit score. However, if the account has an outstanding balance that goes unpaid and is sent to collections, it could negatively affect your credit. Ensure the account is settled before closing it to prevent any adverse effects.
How do you get money from a closed bank account?
To recover funds from a closed bank account, contact the bank as soon as possible. They must return your money through a cheque or transfer to another account. Make sure to clear any remaining fees beforehand. If your account is closed due to concerns of criminal activity, the bank can legally freeze your assets.
Can a bank close your account without notice?
Yes, a bank can shut down your account without prior notice. Common reasons include inactivity, low account usage or suspicious behaviour. However, the bank must return any remaining balance, minus any applicable fees.
Can a closed bank account be reopened?
Yes, it is possible to reopen a closed bank account, depending on the bank's policies and the reasons for its closure. Accounts closed due to inactivity or by your choice are usually easier to reopen than those closed for violating bank policies.
If my bank account is closed, what happens to my direct deposit?
Direct deposits are typically returned to the sender if your bank account is closed. This process can take 5-10 business days.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd.
and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader
for taking any financial decisions based on the contents and information. Please consult your financial advisor
before making any financial decision
