Banks charge you to close the account if you are closing it too early after opening the account. Some banks charge the customers if they are closing the account before 6 months, whereas some banks charge before 3 months. It totally depends upon your bank and its policies. The customer will be briefed about the closing charges while opening the account with the bank.
What are Account Closing Charges?
Account closing charges are fees that are charged by the banks from the customer while closing the account. These charges vary from bank to bank and are also different for different types of accounts. This charge is either paid in cash by the customer are is deducted from the balance he or she has in the account.
Why Do Banks Charge for Closing the Account?
It costs the bank money to get a customer on board. It can be the marketing and promotional expenses they make or the money they put into running the locations and branches. At the same time, the bank gives the customer things like debit cards, cheques, etc. The expenses of all these instruments or documents are paid by the bank.
So if the customer is closing down the account too early then the bank may fail to recover these expenses. That is the reason why the bank charges the customers who are closing their bank account too early. Generally, customers don’t realize the money the bank has spent on them but this is how banks work.
Is it Mandatory to Pay the Charges?
The basic thing for us customers to understand is we will be signing the documents with terms and conditions while opening the bank account. And normally the banks do mention the closing charges in these documents. So if we talk by law then yes, it is mandatory to pay the charges.
Only if there is a clause in the terms and conditions and only when you are closing the account too early. I have observed that there are some banks working globally. That charges their customers even when they are closing the account after years of banking relationships. (maybe because it’s their policy)
How do I Check if I have to pay the Charges?
Usually, we don’t remember the terms and conditions of the bank that are briefed by the bank officials to use. So it is quite common for us customers to forget about it. The best thing you can do to check if you have to pay any charges is by contacting the bank. Look for the customer service number of your bank and give them a call.
How Can I Avoid the Charges?
There is a way to avoid these charges. The first thing you have to do is call the customer service of your bank and ask them what is the minimum period of time you should hold the account with them. For example, if your bank charges if you close the account before 6 months of time.
Then wait for 6 months, maintain a sufficient balance in your bank account. And once the period of 6 months is elapsed, locate the nearest branch of your bank, go to the helpdesk and get your bank account closed for free without paying any charges.