In the post below, we’ll outline a few common reasons individuals choose to close their bank accounts. The article will also provide specific instructions to help readers close a bank account easily.
Why do people determine to close their bank account?
There are numerous motives why people select to close their bank account. Those things can be losing an account, choosing another bank’s service, or being dissatisfied with the service that the current bank provides.
- Dissatisfied with the service that the bank provides: Poor customer care service, many costs, and limited utility will make customers feel dissatisfied with the bank. This leads them to want to close their bank accounts.
- Change of place of residence: You have to change your address to another city or country so you need to close your current bank account and open a new one for ease of management and hassle.
- Better interest rates at the new bank: You find another bank that may offer better cost terms. Therefore, you want to close your current bank account and switch to the new bank’s service bank.
- Financial consolidation: In some cases, couples staying after marriage will have a need to consolidate their finances. In order to simplify and streamline money management, they will choose to close their individual accounts and open a joint account for both spouses.
- Stolen or Hacked Account: You should immediately close your bank account if you discover theft or if your account has been hacked to minimize damage.
- Decommissioned Business: In case you are a business owner and your business is about to be dissolved, you should also close the bank account associated with your business.
- Death of Account Owner: If someone, unfortunately, passes away, their bank account must be closed. This is to ensure that the money in the deceased person’s bank account becomes an inheritance and that they are distributed among the heirs.
Bank bankruptcy or permanent closure: In this case, you have no choice but to close your bank account. This can avoid unnecessary risks to your property.
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Steps of the bank account closing process
You are experiencing the above reasons so you want to study the steps to close your bank account. in that case, observe the following:
Read your bank’s terms and conditions: it is a good concept to thoroughly research your financial institution’s phrases and situations regarding closing prices.
Withdraw funds from the account you need to close: it’s far more encouraging that you withdraw cash out of your current account, but leave enough money to pay the final costs.
Cancel automated payments: Before opening a new bank account, you should cancel automatic bills in your present bank account.
Delete unpaid transactions: As an example, delete pending transactions, and delete unpaid tests,…
Inform the financial institution that you want to close the account: You’ll inform the financial institution’s customer service department to notify the account closure. Next, you must comply with the commands of the bank and offer data about identification documents, and signature if the bank requires.
Account Closed: The bank will ship you a written affirmation that your bank account has been closed.
Inform depositors about your bank account closure: In case you acquire earnings or authorities’ blessings, you need to notify the closure of your modern-day financial institution account of the relevant events. and offer new financial institution account data.
How to close an online bank account
There are many banks that allow you to close your account online. This is to help customers limit their travel and save their time.
- Prepare all the necessary information: To make the account closing process faster, you should prepare enough information about your account number, ID, information about pending transactions,…
- Access to the online banking app: Once you’ve signed in to your account, go to your account manager, where you’ll find options that allow you to close your account.
- Read the bank’s terms and conditions: You must carefully read your bank’s terms and conditions regarding the prices you’ll pay when you close your account. Remember to read it cautiously if you do not want to get into financial trouble.
- Start the account closing process: you could now click the choice to close the account. Some banks will ask you to offer reasons why you selected to shut your account, and pick out the reason why you got here to the choice to shut the account.
- Identity Verification: You may have to answer some security questions, or confirm by email or text message. This is to prevent someone from intentionally logging in and closing your bank account.
- Withdrawal from current account: You need to make sure that all funds have been withdrawn from the account. You should also cancel automatic payments or recurring transactions.
Confirm the completion of the account closing process: After you have filled in the information in the form, the bank will notify you that your request to close the bank is being processed.
How much do I have to pay to close my bank account?
Not at all, but there will be some banks or monetary institutions that require you to pay a certain rate in case you need to shut your account. Continue to discover this article to find out what those fees are.
- Early account closing fee: In case you need to shut your account a few months after opening, your financial institution will ask you to pay a fee of $25 to $50.
- Account upkeep fee: If the quantity in your account is much less than the minimal amount your bank is required to have earlier than ultimate your account as they’ll price you for the fee of preserving the account.
- Bank switch rate: in case you need to exchange to some other bank, your cutting-edge bank will ask you to pay a wire switch charge, which can vary from $20 to $35 greenbacks.
In conclusion, closing a bank account is an individual choice. In order for the account closure process to go smoothly and avoid unnecessary trouble, you need to thoroughly research the terms and policies of the bank you want to close the account with.
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