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A savings account is usually opened in a bank by the persons who are salaried or have a regular income that is fixed. There could be numerous reasons why individuals opt for closing their savings account. It is better to close the savings account whenever you feel it is not needed or when you are unable to maintain it, rather than the bank closing your account when you have the negative balance or if the account is inactive. Banks always inform and provide enough time to the account holder before closing the savings account.
How to Close a Savings Account Through Creditseva
It is better to close a savings account before it becomes inactive. In case an account becomes inactive, there are chances that your CIBIL Score is affected because there is no minimum balance that has been maintained. The most appropriate way to close a savings bank account easily is by using the Credit advisory services of Creditseva and stay creditworthy. You just need to sign up, fill in your basic details and receive detailed as well as holistic insights of your credit-related data and thus maintain, improve your credit score in an easy and simple manner.
Important Points to Be Kept in Mind While Closing a Savings Account
- You should certainly withdraw the extra amount in your account and keep only a minimum balance in the account.
- It is required to have a Xerox copy of cheques and debit card.
- After you receive an acknowledgment that the account has been closed, you should damage the credit, debit card and cheque book.
Steps to Close Your Savings Account
- Cut down the balance of your account to zero.
- For safety and backup purpose, you should scan your debit card and also the first and last unused check.
- Reach out to that branch of the bank where you had opened the account.
- Fill up the form for closing the account.
- It will be informed to you by post that your savings account is closed.
- In case you don’t obtain a post within a span of 15 days, with the confirmation that your savings account is closed, you need to call up the bank and confirm whether the account has been closed or not.
- While you are on a call with the bank, you should keep the information like customer id ready with you.
- Discard the unused cheques.
Savings Account FAQs:
1. After how many days of opening a savings account, should I close the account?
You can close the savings account after opening it for a year. In this situation, you will not be asked to pay any charges. In case you close the account before the end of a year, a certain amount of account closure charges will apply. In case you close the account within 6 months, you will have to pay some nominal amount of charges. The charges that are to be paid while closing the savings account are different in different banks.
2. How can I get the bank statements if my savings account is closed?
You need to enquire about this to your bank’s branch or write to the customer service
3. Suppose I have recently closed my savings bank account, will all my documents still be accessible and visible to them?
Yes. The bank should hold the details for at least for 10 years.
4. Do I need to close my savings bank account accurately or I can simply make the withdrawal of the entire amount?
You need to close the savings bank account accurately in a proper way if you are not willing to maintain another bank account. If you do not maintain a minimum amount of balance in your savings account, it will impact your credit score.
5. What are the things that I should be aware of while closing my savings account?
- It so happens that sometimes banks tend to charge you an annual maintenance fee. You need to have a check on it by mentioning the closure letter.
- You may also be asked to pay penalty for non-maintenance of sufficient account even on closed accounts. In this case, also you can show the closure letter so that the bank authorities exempt you from these charges.
- Be careful and damage your ATM or Debit card as well as all checks so that nobody can use either of them after your account is closed. If someone would try to use your checks after your account has been closed, you may be charged a penalty for carelessness.
6. If I have recently closed my savings account, will all the records of my transactions still exist with the bank?
Yes, the bank will have the entire record of your financial transactions. Banks are told to maintain the records of the individuals and their financial history up to 10 years. Your data is available with the bank, but it is highlighted under the heading closed account.
7. Does RBI keep a record of a closed saving account?
No, the RBI does not possess the record of your closed savings accounts. It is only the statistical data that is available with the commercial bank, with whom you had opened the account.
8. How can I close Savings Account from abroad?
You need to follow the steps given below to close the saving account from a country that is out of India. This is possible only if the bank permits to do so.
- Firstly, shift the full bank balance to another account. Damage the unused cheques, Debit Card or ATM cards.
- Write a letter requesting the closure of the savings account. This letter should consist of the signatures of all the account holders.
- You need to make sure that you do not have any Credit card, FD link or an auto debit instruction. If this is not cross checked, then you will have some inconvenience in closing the account. You need to drop the letter of request to the home branch of the bank in India.
- You also need to inform the Bank that you had requested for the closure of savings account either by Net Banking, or on email, or through Phone Banking.
9. Why is it compulsory to visit the bank for closing the savings account?
- It is compulsory to visit the bank for closing the account because of security and verification reasons.
- Another reason is that closing an account means terminating the contract. This is done by having the account holder present at the bank personally.
- Loan Closure
- Debit Card Closure
- Credit Card Closure
- Secured Credit Card Closure
- Salary Account Closure
- Savings Account Closure
- Redeem Mutual Fund Units
- Close Fixed Deposit