Sometimes we all come to a point when we become unhappy with our bank and may decide to close the account and move to another bank. This, however, does not just happen overnight as you need to follow a process.
The process on how to close your bank account can vary from bank to bank, and in this article, I’m going to talk about the 3 steps to close your bank account rather than risk being charged monthly fees on an inactive account.
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3 Steps to close your bank account
1. Explore your close-out options
Every bank in the world has a different policy for closing out accounts. Some banks may let you close your account online, while others would want you to visit a local branch or their head office. Call your bank to see the closing method they require.
This will allow you to verify what information they need from you to finalise the closure.
2. Decide what to do with your remaining balance
If you have money left in the bank account you wish to close, there are a few things you can do with it. If you decide to open an account at another bank, then you should do so before closing the current account.
If you decide to withdraw the remaining balance, you can decide to request a paper check, withdraw the cash in-person, or decide to transfer it to a new bank. The easiest way is to transfer the funds to a new bank account first. This is usually free and ensures your money is safely deposited in an account where it can’t get lost or stolen.
3. Request written confirmation
Now, this is the essential step to take and close your bank account. After you’ve found out the policy for closing out accounts from your bank, you should now write a bank account closure application letter giving details on why you want to close your account.
When sending the account closure letter to your bank, you should also make sure you return your debit cards, passbook, and your chequebook. It is customary to send these items together with your bank account closure application letter.
Steps to close your bank account (Sample Letter)
To whom it may concern,
Please close the account(s) listed below. Please send any remaining funds in those accounts by check to the address below, and reject any further requests for transactions in these accounts.
Checking Account: [Account Number]
Savings Account: [Account Number]
Money Market Account: [Account Number]
Other Account: [Account Number]
Please provide written confirmation that the accounts are closed.
If you have any questions, please contact me at the phone number below.
[Account Owner’s Original Signature]
[Account Owner’s Printed Name]
After sending your bank account closure application, you should wait until you get confirmation from your bank that the account has been closed successfully. After that, double-check to ensure that it has indeed been closed. So whenever you are fed-up with your bank, follow these steps to close your bank account.