Letter To Close Bank Account And Transfer Funds: The motivations to close a bank account can differ from person to person. Most common reasons include no proper answer or service, different kinds of fees being charged unnecessarily, untrustable online assistance, etc. It can also be because you cannot keep the account, need the money, or simply want to start a new account.
Occasionally, it happens otherwise too. The bank closes your account because your account remained dormant for a very long period of time, you have had zero balance over a span of time, you have multiple bounced checks or overdrafts, and you have been subjected to identity theft, etc.
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- Reasons to Close a Bank Account
- How to close a Bank Account
- How to Close Specific bank accounts
- Letter To Close Bank Account And Transfer Funds Sample
- FAQ’s on Letter To Close Bank Account And Transfer Funds
Reasons to Close a Bank Account
- Poor Customer Assistance.
- Your Bank is becoming Unbanked.
- Availability of your bank.
- Requirements of your bank.
- Changing Banks.
- Provided Bank Insurance.
- Not Tech Savvy.
- You’re transferring to a new city or state
- You can get more reasonable interest rates
- You’re changing to an online bank
- You’re being charged expensive fees
- You can get better features and assistance elsewhere
- You’re starting a joint account
- You’re squeezing your bank accounts
How to Close a Bank Account?
Closing a bank account includes more than just reaching your bank. You’ll want to do some advance work to assure a successful transition. The specifics for closing an account can vary by bank and credit union. Be sure to review your banking institution for special prerequisites. Generally, follow the steps below.
Open a New Account: The foremost thing you need to do is open a new bank account. Having an account in place guarantees you have a place to move direct deposits and payments or debits. Many factors are considered while choosing a new bank, including savings rates, fees, and account offerings.
Change Your Existing Due Payments and Deposits: If you have any direct deposits or automated payments set up, transfer them to the new account. Check with your employer concerning any forms you need to fill out for direct deposit so your salary can be rerouted to the new account.
Do yourself a favor and make a list of your monthly systematic payments. This could include:
- Car payments
- Mortgage payments
- Insurance payments
- Student or personal loans
- Credit card payments
- Gym memberships
- Streaming services
- Utilities and other household bills
Having a list ensures you’ve canceled all of the payments attached to your old account, but you’ll also be organized when you need to set them up for your new bank account.
Transfer Your Money: Before you move money out of your account, let due transactions clear. Failure to do so could result in having to pay extra charges. If there is still money left in the account after everything clears, withdraw the money or transfer it to your new account. If your bank account has a minimum balance condition, only transfer money out of the account when you’re ready to close it so you’re not charged a monthly maintenance fee.
Contact Your Bank: Cancel your bank account online. Many financial institutions allow you to do this online, but it could need a phone call to customer service or a visit to a local bank branch. Your bank may require you to fill out an account closure request form or present a written request. Follow your bank’s suggestion on the proper method to start the closure process.
The bank will check your account to ensure it’s in good standing and that you’ve resolved any unsettled issues before it marks the account as closed. If there are any remaining funds in the account, you should be able to ask for a transfer to your new account or receive a check by mail.
If Needed, Send a Letter to Close Your Bank Account: You can also write a letter to your bank to close an account along with the needed information. To do so, you can use the template given below or a similar format.
Get Written Assurance: Don’t consider that the account is closed. It’s recommended to get a written confirmation when you close a bank account. This defends you if the bank doesn’t follow through or some issue occurs.
How to Close Specific Bank Accounts?
Not all account closures are operated the same. Other techniques may pop up that require extra steps to close a bank account. Here’s a look at a few examples that might require extra engagement.
For Joint Account: If you’re closing a joint account, your bank may need an account closure request with both account holders’ signatures. Many banks, nevertheless, only need one account holder’s consent. Canceling a joint account online could mandate both parties to request an account closure.
For Child’s Account: Some bank accounts are automatically altered into standard accounts when a child turns 18. If you’re of your state’s legal age to bear complete control of your under guardian account, you can close the account the same as any other bank account.
For Inactive Account: If your account has been marked “Dormant,” you’ll require to reactivate it before it can be closed by the bank. Reach your bank’s customer service to reactivate your bank account. There might also be an alternative to do this through your online or mobile banking.
For Overdrawn Account: Having an overdrawn account could contain you from closing an account. You’ll need to get your account to nil or zero balance or higher before the bank will process your closure request.
For Deceased Person’s Account: Closing the bank account of a loved one who has departed away can be more complex than closing other accounts. How the account is handled depends mainly on how the departed structured their finances, including whether they listed an heir or had a will. Provisions and documentation may depend on state law. Your best bet is to seek a legal consultant before proceeding.
Letter To Close Bank Account And Transfer Funds Sample
To,
The Branch Manager
Name of your Bank:
Branch address and IFSC Code
Full Address.
From,
Your name per bank records
Your full address
Date: dd/mm/yyyy
Dear Sir/Madam,
I (mention your name here), have a saving banks account (your account number here) in your branch. I have recently shifted to another city and will not be using my account held at your branch anymore.
It is requested that my account be closed and the money along with interest may please be credited into my savings account, details of which are given below.
Name: (Your full name as per bank records)
Bank: (Name of your Bank)
Branch: (Name of the branch and IFSC code)
Savings Bank Number : (your new account number)
I have handed the subsequent documents in original to the branch manager, (name of branch manager, along with bank and branch) where I presently operate my account.
Passbook
Cheque book
ATM card
Credit card
I also ensure you that no cheque has been given from my account held at your branch.
I look forward to the early processing of closure and transfer of funds to my new savings account. It was a delight banking with you.
Thanking you.
Yours sincerely
(Sign and write your name)
FAQ’s on Letter To Close Bank Account And Transfer Funds
Question 1.
Can You Close a Bank Account Online?
Answer:
Numerous banks allow you to close an account online. It’s quite common among online banks. Some allow you to close an account via online messaging or email. Others offer chat features that let you close an account via customer support.
Contact your bank to gather out options. Confirm your account is in right standing and has a zero balance before you try to close it.
Question 2.
How Much Does It Cost to Close a Bank Account?
Answer:
Generally, it doesn’t cost anything to close a checking, savings, or money market account. Time-deposit accounts, such as certificates of deposit (CDs), may issue a fine. Most banks and credit unions levy an early withdrawal penalty if you close a CD account before its maturity date.
Question 3.
How Long Does It Take to Close a Bank Account?
Answer:
Closing a bank account can be an instantaneous process, especially if you’ve already moved funds from the account and accounted for any lingering dealings. If you’ve already withdrawn or transferred funds to another account, the closing process may just take a few minutes.
Question 4.
Tips When Closing a Bank Account?
Answer:
If you’re intending on closing a bank account soon, here are a few extra tips that will benefit you in the long run:
- Open a new account first. Opening a new account beforehand of time gives you a chance to transfer funds out of the old account. It also gives you a place to complete transactions during the transition.
- Document everything. Closing a bank account should be smooth. But hold records of communication with bank staff and keep communication from your bank.
- Destroy the leftovers of your old account. Destroy the things tied to your old account like debit or credit card etc. This saves them from getting lost, stolen, or used accidentally.