Bank accounts are very necessary these days. And generally, people have more than one bank account with them. But sometimes the account(s) need to be closed for a variety of reasons.
But mainly the customer of the bank decides to close the account because he or she might not be using the account anymore.
The thing changes when the charges come into the picture. In certain circumstances, the customer has to pay the bank to close the bank account.
Should You Pay to Close Your Bank Account?
This is what we will be exploring today. The main thing for us here is to understand when the customer is asked to pay the account closing charges.
The account closing charges are just one. There are so many charges the customer has to pay to the bank.
So let me answer the question now.
Yes, you will have to pay the account closing charges if you are closing the bank account within 12 months. If you have opened the bank account on 1 January 2020.
Then if you go to the bank and request it to close your account on or before 31 December 2020. Then the bank will charge you the closing charges.
Is this Even Legal?
Yes, this is totally legal. Now you might be wondering how can this be legal if the bank is asking you to pay to close the account.
Let me explain it.
While you were opening the account with the bank. You might have signed a number of documents that had so many terms and conditions. Those pages act as a contract between the customer and the bank.
And the account closing charges will be a part of those terms and conditions. So you have already agreed to the bank to pay these charges in case you close the account within one year. You can learn more in this article by Financial Express.
Do All the Bank Charge Account Closing Charges?
No, all the banks do not charge account closing charges. This depends upon the internal policies of the bank. There is a limit for every charge that the bank can take from the customer. These charges (maximum) are decided in the framework that is given to the banks by the Reserve Bank of India.
How to Find How Much the Charges Are?
You can learn the exact amount of charges by getting in touch with your bank. This can be done either by calling the customer care of by directly visiting the nearest branch of the bank.
How to Charge to Close the Account is Collected?
These charges are directly deducted from the balance you have in your account. So you need to pay anything in cash. But in case you don’t have sufficient balance.
Then you will have to deposit the charges in your account from which the bank will deduct the charges.
This is when you will have to pay the charges to close the account you have. There is a way to avoid this charge. You can do it by holding the account until your account becomes one year old. In that way, you can close your account without paying anything extra.