Closing a Bank Account : A Short Guide on What to Do

For one reason or another, most people change banks at least once in their life and therefore have to go through the process of closing their old bank account. This process is fairly straightforward, but it is best to follow certain steps, or you may end up paying unnecessary charges. The first thing you need to do is stop using the account. This means not withdrawing from or adding to your account balance. If you are not sure if you have any outstanding transactions, then ask at the bank or check online. Obviously, you will need some banking services, so you should open your new account before you close your old one. Do not rush the decision of who to open your new bank account with, as you need to make a good decision.

Different banks have different cancellation policies, so you will need to contact yours to find out what exactly theirs is. You may be charged a fee for closing your account. When you familiarize yourself with their policies, it is time to pay a visit to the bank and close your account. You may consider going before 3pm so that the bank processes your request on the same day. It is possible to write a letter rather than paying a visit in person, but the cancellation process will take longer if you do this.

Mind that some banks require that you show two forms of identification, making it difficult to close your account without being physically present. If the bank does not have it as a requirement, you may opt for a letter. Provide as much detail as possible in your letter, to reduce the chance of having to write more than one. Do not forget to request that the bank sends the remaining balance to the address you specified. They should send you confirmation when your account has been closed anyway, but request it just in case it is not part of their standard procedure. You might also leave your phone number in case the bank needs to get in touch with you.

It is essential to close other cash reserve accounts which are tied to your bank account. Think back over any additional accounts that you may have signed up for that you rarely use, or have not used at all. Leaving an unused account open makes it easier for someone to steal your identity. All automatic withdrawals and transfers will all also need to be stopped / changed. This has to be done one month prior to closing your account so that you do not miss any of them. These include bill and insurance payments, membership fees, etc.

Destroy / shred your bank cards and cheques as soon as you have your ones from your new bank. If you use them accidentally then you may find yourself being fined. This step is quite important. Once the bank sends you a conformation letter that the account is closed, you have gone though all steps of the process. It is advisable to hold to that letter for a few years just in case any problems arise at a later date. You might also want to periodically examine your credit report, making sure everything is in order with that account.

Learn more – The Forum Or Analyze This And That

 Print