Having multiple savings accounts becomes a problem. The average quarterly balance has to be maintained to keep the savings account in the bank active. Apart from this, all information has to be given in the income tax return as well. In such a situation, if you do not use any of your bank accounts, then closing it is a better option. However, there are also fees for closing a bank account. Government and private banks have different fees for this. In some cases you can also avoid paying fees for account closure. But before you close any account, keep some things in mind.
De-link account first
Before closing a savings account, it is important for you to see that there is no investment or trading account linked to that account. Your payment link is usually linked to investment, EMI, credit card payments and insurance from a bank account. If you have any other such account linked to this bank account, then first link your other bank account with such a payment. While closing the account, you have to fill the de-linking account form.
Need to explain the reason for the shutdown
An account closure form is available at the bank branch. In this form, you have to explain the reason for closing the account. If your account is a joint account, the signature of all the account holders on the form is required. You will also have to fill a second form. In this, you will have to give the information of the account in which you want to transfer the remaining money in the closed account. To close an account you will have to go to the bank branch yourself.
Keep these things in mind
The bank will ask you to deposit the unused checkbook and debit card along with the bank closure form. If there is money in the account, then it can be paid in cash (up to Rs. 20,000 only). You also have the option to transfer this money to your other bank account. Also keep in mind that if you have more money in your account, then transfer it to another account before starting the closure process. Keep the final statement of the account with you, mentioning the account closure.
When do not charge
Banks do not have any guidelines from the Reserve Bank on account closure. Such different banks charge different fees. Generally, there is no charge for closing the account within 14 days of opening the account. At the same time, there is no charge for closing the account after one year.
How much fee in public banks
In case of public sector banks, the largest bank in the country does not charge any fee on the account which is more than one year old to close the SBI account. But after 14 days of opening the account and closing the account within one year, then 500 rupees and GST will have to be paid. At the same time, PNB charges fees according to the duration and account. There is no fee for closure of account for 14 days in PNB also. PNB takes the amount as per the account on account closure within 14 days to one year of opening the account. He charges Rs 100 for closing an RD account, Rs 300 for closing a savings account and Rs 600 for closing a current account. However, there will be no fee for account closure after one year. Also Read: Yes Bank returns to profit from record loss, double profits to UltraTech in Q3
Close account with private bank is expensive
Private banks charge higher fees than government banks for account closure. HDFC Bank does not charge any fee for account closure within 14 days and after one year. However, after 14 days, closing the account within six months charges a thousand rupees. At the same time, from six months to the 12th month, a fee of Rs 500 is charged on closing the account. At the same time, ICICI Bank does not charge any fee for closing the account within 30 days. Whereas from 31st day to closing the account within a year, a fee of Rs 500 is charged.
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