Savings Bank Account Closing: With the changing times, there have been a lot of changes in the banking system. Nowadays banks are encouraging their customers to use Net Banking and Mobile Banking. Most banks allow customers to open bank accounts sitting at home. In such a situation, customers easily open an online savings account. Opening a savings account can be very beneficial in many cases, but at times it can also be very harmful.
By having multiple savings accounts, you get the benefit of banking features of different banks, but if you do not use this multiple savings account properly, then it can also cause loss for you. The savings accounts that you do not use are called inactive or dormant savings accounts.
Often when people do not use a savings account, it later turns into an inactive or dormant category. This can later become a means of fraud. This type of account can be used for wrong purposes. In such a situation, if you are not using any savings account for a long time, then close such account as soon as possible. After this you will not face any kind of problem. Let us know what are the important things to keep in mind while closing the account-
1. Pay the service charge and penalty on the account
When you do not use an account for a long time and do not maintain the minimum balance in it, then due to this, the bank starts levying different types of penalty on your account. In such a situation, before closing the account, the customer will have to pay all kinds of service charges and penalties. Only after that you can close the account. Failure to do so may have a negative impact on your credit score.
2. Will have to pay closure charge
Let us tell you that if you close the account within one year after opening an account, then you will also have to pay the closure charge of the bank. How much closure charge you will have to pay depends on the banks. In such a situation, if you are getting the account closed soon, then definitely deposit the closure charge according to the banks.
3. Update Savings Account Details across Locations
Explain that before closing the savings account, you must update the details of your new savings account with EPFO, IT Department or Insurance Company. Many times people forget to do this important work, due to which they have to face a lot of trouble later. In such a situation, try to first update all the details related to the account and only then close your savings account.
4. Cancel EMI Linked Account
If you have any subscription or EMI linked to your savings account, then you should first cancel it. Many times people do not take care of these things while closing the account. Most of the banks give payment instruction to their customers, in which you automatically deduct money from the savings account. If you do not cancel the instruction, then your payment will not be cleared and later it will affect your credit score.
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