Closing A Bank Account : A Short Guide On What To Do
For one reason or another, most people change banks at least once in their life and
therefore have to go through the process of closing their old bank account. This process is fairly straightforward, but it is best to follow certain steps, or you may end up paying unnecessary charges.The first thing you need to do is stop using the account. This means not withdrawing from or adding to your account balance. You may check online and see if there are any outstanding transactions. You may also want to open a new account before your old one is closed. Do not rush the decision of who to open your new bank account with, as you need to make a good decision.
Different banks have different cancellation policies, so you will need to contact yours to find out what exactly theirs is. You may be charged a fee for closing your account. Once you know what the cancellation policy is, you then need to visit your bank. You may consider going before 3pm so that the bank processes your request on the same day. If you cannot go in person, you may write a letter to your provider and request to have your account closed.
You will probably need to provide at least two forms of indentification. If writing a letter, then you should photocopy your identification and send it with the letter. Provide as much detail as possible in your letter, to reduce the chance of having to write more than one. It is important to state clearly what you want the bank to do with your remaining balance. They should send you confirmation when your account has been closed anyway, but request it just in case it is not part of their standard procedure. You might also leave your phone number in case the bank needs to get in touch with you.
Do not forget to also close any accounts that are tied in with your main bank account. Think back over any additional accounts that you may have signed up for that you rarely use, or have not used at all. Someone may steal your identity and reopen the account. In the same line of thought, you have to stop all automatic withdrawals, transfers, and direct deposits. This has to be done one month prior to closing your account so that you do not miss any of them. These include bill and insurance payments, membership fees, etc.
If you already made a request to have your account closed, you need to destroy your debit card and shred all remaining cheques. You do not want to use those by mistake and get in trouble with your bank. This step is quite important. Once the bank sends you a conformation letter that the account is closed, you have gone though all steps of the process. It is wise to keep the conformation letter on file for several years.
by: Mark Walters