Closing a Bank Account? Here’s Everything You Need To Know

Closing a bank account isn’t something we do often. However, knowing how to go about it can help when you’re planning to. Whether you’re switching banks, moving cities or just don’t need the account anymore, the process is simple when you follow the right steps.

What are the Reasons for Closing a Bank Account? 

There could be many reasons why you would want to close bank account:

• You are juggling multiple accounts and want to streamline things
• You’re relocating or moving abroad
• Your current bank has significantly hiked charges like the minimum balance requirement
• You’re shifting to a digital-only banking experience
• Your bank is undergoing a merger and could change favourable policies

Irrespective of the reason, the procedure to close bank account remains the same. Closing it the right way will help avoid future hassles like hidden charges or bounced transactions.

How to Close the Bank Account?

Here’s a simple way to go about it:

• Clear all dues and charges: Make sure there are no penalties, EMIs or fees pending.
• Transfer your balance: Move your money to your new bank account before initiating the closure.
• Download or save past statements: Keep a digital or printed record for future reference.
• Update linked services: Change your bank details for salary credit, EMIs, SIPs, subscriptions and utility bills.
• Submit a closure request: Visit the branch or check if your bank offers online closure through its website or mobile app.
• Provide the required documents: You might need to fill out an account closure form and submit a letter of closing bank account along with ID proof.
• Safely discard debit cards and old cheques: You can shred unused cheque leaves and cut up your debit card to avoid any risk of misuse. 

If your bank requires a letter of closing bank account, you can write one yourself. Include your name, account number and reason for closing the account. Also include a request to transfer the balance, if any, along with your contact details. You can hand it over at the branch or even upload it online as per your bank’s digital infrastructure. 

How to Close Bank Account Online?

Although most banks still require a branch visit, some now offer this service digitally. You can log in to your internet or mobile banking and head to the service requests section. Then, fill out the closure form and upload the required documents.

However, banks might still require you to submit physical documents like:

• Unused chequebooks and debit card
• Duly signed closure forms for physical verification

It’s best to check with your bank to know the exact process.

What Documents are Required to Close a Bank Account?

You can keep these documents handy for a smooth closure process:

• Filled account closure form
• A written request or letter of closing bank account
• Valid ID proof (Aadhaar, PAN, etc.)
• Any unused cheque leaves and your debit card

Some banks may also ask for a cancelled cheque from your new bank account to transfer the remaining balance. Once you submit your request and documents, most banks take:

• Immediate to a few hours: Specially private banks like HDFC and Punjab National Bank may close your account on the same day, often within a few hours.
• Up to 7 business days: Banks like the State Bank of India (SBI) may take longer, especially for older accounts or specific account types

You’ll receive a confirmation via SMS or email once the account is successfully closed.

How to Deactivate a Bank Account?

If you’re not using the account but don’t want to go through the closure process, you can simply stop all activity. After a period of inactivity, the bank will mark it as dormant. But do note, dormant accounts can still attract maintenance charges. So, it’s better to officially close it if you don’t plan to use it again.

Also, some banks may charge a closure fee if the account is closed too soon after opening. This period can range from the first 14 days up to 1  year, depending on the bank. Before 14 days or after 1 year, most accounts can be closed without any charge. So, it’s best to check your bank’s policy beforehand.

Closing a bank account is easy if you plan ahead. Just make sure your balance is transferred, dues are cleared and all services are updated with your new account. 

If you need a little extra support during the process, Fibe offers a simple way to access funds when you need them. With Fibe’s Personal Loan, you can easily borrow up to ₹5 lakhs and repay up to 36 months. It’s quick, hassle-free and you’re free to use the money as you like!

FAQs on How to Close a Bank Account

Can I close my bank account without visiting a branch?

Yes, few banks do offer an entirely online procedure to close bank account. However, for most banks, a final verification may require a visit.

 Are there any closure fees associated with terminating my bank account?

Most banks don’t levy charges if the account is older than 12 months. Even if you close it within the first 14 days, it’s usually free. But if you close it anytime between 14 days and 1 year, most banks may apply a fee.

What is the typical processing time for closing a bank account?

The processing time to close bank account may vary from one bank to another. However, it usually takes a few working days, depending on your balance and paperwork.