Many people think closing a bank account is easy—just visit the branch, fill out a form, withdraw your balance, and you’re done.
But small oversights can lead to fines, negative balances, or missed payments.
To avoid trouble, here are six important checks you can complete in just ten minutes before closing your account.
Check for Minimum Balance Penalties
Inactive accounts may have minimum balance penalties deducted each month, sometimes ranging from Rs 500 to Rs 1,000.
These penalties are often applied first when closing an account.
To be safe, download your last three months’ statements to see if any deductions have been made.
Ensure Your Balance Isn’t Negative
Old accounts can accumulate SMS fees, debit card charges, or cheque book fees.
These can result in a negative balance, which the bank will require you to clear before closing the account.
Check your balance using internet banking or the mobile app.
Clear Outstanding Debit Card or Service Fees
Even unused debit cards may have annual fees of Rs 200–750.
Other charges, like SMS alerts, cheque books, or net banking, must also be cleared before closing.
This prevents automatic deductions after the account is closed.
Stop Auto-Debits and ECMS
If your account is linked to auto-debits for SIPs, EMIs, utility bills, or insurance, cancel them or move them to a new account.
Missing this step can lead to late fees or failed payments.
Check for Account Closure Fees
Most savings accounts can be closed free of charge after one year.
Accounts closed within 6–12 months of opening may incur a fee of Rs 200–500.
Salary accounts usually do not have closure fees.
Redirect ITR Refunds
If you are expecting an income tax refund, ensure it is linked to your new account.
Refunds sent to a closed account may be rejected, making recovery difficult.
By spending just ten minutes to complete these checks, you can avoid unnecessary penalties and complications.
A little caution now can save you a lot of trouble later.
