A lot of fuss is being made over the bank charges levied on account closure.
Generally, if the account is closed within a year, account closure charges are levied by the bank. These are known as bank account closing charges. Recently, SBI has done this, they have revised its bank account closing charges. The new charges will be effective from October 1.
Earlier the bank used to levy a charge of Rs 500 plus GST (goods and services tax) if a person closed its bank account even after a year of opening it. Those who close the bank account within one year of opening will have to pay Rs 500 plus GST. No change has been made for such customers.
Despite the charges, it is always sensible not to hold multiple accounts. Various times, when you change job or move to a new place, then you need to get your account changed and salary stops crediting to a particular account for a few months it converts into a savings account. All charges of savings account is levied on that account. You will also have to maintain a monthly average balance to avoid penalties. Maintain only those accounts which are necessary.
The more accounts you will have, the more you will have to pay for these charges every year.Closing several bank accounts would also save your from the trouble of misuse as less number of accounts would mean a regular tracking of transactions. Lastly, small number of accounts would mean easy tax filing with less number of receipts and interest earnings.
Account closing process
Different banks follow different processes but broadly this is the procedure:-
- Debit all the money that you have in your bank account.
- Approach your nearest branch and fill up the account closure form. The form ask for another bank account in order to transfer money before the account is closed.
- In case your account is a dormant one, then you will have to first activate it to close it and submit the closure form.