There are multiple reasons such as less competitive interest rates, higher minimum balance requirements, unsatisfactory customer services, not so good online services, high fees on financial transactions, multiple savings accounts that influence a customer to opt for closing a savings account.
Thus, if you want to close a savings account, you need to follow a few steps. It is important to note that the steps to close a savings account may vary from bank to bank. In this article, we will take you through the common steps that need to be taken while closing a savings account.
Things to do Before Closing a Savings Account
Right when you decide to close your savings account, there are a few things that you should do before you move on with your decision.
- You need to visit the bank physically as closing an account cannot be done online. While most of the banks require one to visit the bank’s branch to close an account, Paytm Payments Bank allows you to close your savings account online by following a few simple steps
- In case your account is dormant, meaning, it was inactive for a longer period of time, you need to first make it active in order to close it later
- If you have a joint savings account, then both the joint account holders need to be present at the time of the account closure process. However, there are some banks that ask for a ‘No Objection Certificate’ (NOC) in the absence of one partner
- If you have taken a loan, credit card services, have a Demat & Trading account or locker facility, you need to be sure of what to do with them before closing the account
- Keep all the official documents like PAN card, AADHAR card, etc. handy while starting the process
- Immediately stop all the automated payments from the account that you want to close and link the payments process with the new bank account
- Keep all your savings account statements saved with yourself as you might require them in the future
- Transfer the money from your savings account that you wish to close to the new account. With a major number of banks, this must be followed as a general practice to close a savings account. However, a Paytm Payments Bank savings account does not disrupt the Paytm wallet functionality. This implies that instead of transferring the remaining amount to another account, you can simply transfer it to your Paytm wallet for usual transactions
- If it is a salary savings account, make sure to submit the account details of a new account to your company to get timely salary credit
Apart from these, you can connect with the banking official to guide you regarding the necessary things to take care of before closing the account.
Now, it’s time to actually move ahead and close the savings account. It must be noted that even though different banks have their own terms and conditions to close the account, a few basic steps remain the same.
How to Close a Savings Account?
Follow this step-by-step guide to close your savings account-
- Fill the account closing form nicely, stating the reason for account closure behind it. The form can either be obtained from the bank itself or from the bank’s website. In the case of joint account holders, both the account holders need to fill the form or a NOC can work as mentioned above
- Now, submit all the required documents like ID proof along with the bank kit that includes the passbook, chequebook, debit card
- The banking official will check your account history for any pending dues, fines or charges against the account, which, when detected, needs to be paid by the account holder
- If your account is linked to a credit card, Demat account, loan or FD account, you need to unlink them from the account
- After the submission of the required documents, forms and bank kit, you will be charged a fee for the account closure. Again, the account closure fee structure will be different for different banks, according to the account tenure and type of account
- Now, the banking official will handover the account closure acknowledgement to you
It will take around 7-10 working days to close an account; however, the duration might vary from one bank to another. Once your account is closed, you will receive an SMS or an email on your registered mobile number or email id.
While most of the banks in the country follow the above-mentioned procedure, Paytm Payments Bank allows users to close their savings account in fewer, simpler steps. Unlike other banks, one does not need to submit any supporting documents, etc. to close a savings account.
How to close Paytm Payments Bank Savings Account?
Unlike most banks that require numerous documents to submit and a specific banking criteria to meet before closing an account, Paytm Payments Bank allows one to close an account in just two steps without involving documentation. Here is how you can close your Paytm Payments Bank savings account-
- Locate the ’24*7 Help’ section in your Paytm mobile application
- Raise a ticket with Paytm Payments Bank to close your savings account
- Follow the instructions as they appear!
This is how easy, effortless, fast and digital it is to close a Paytm Payments Bank savings account online. Also, note that a closed savings account does not impact your access to your Paytm wallet. You can use your Paytm wallet as usual for everyday transactions even if you close your savings account with Paytm.
- Multiple bank accounts
- Not so satisfactory customer service
- Lower interest rates
- Heavy fee on transactions
- Switching from child account to regular account