If you have a bank account with a negative balance then you can not close it. You first have to bring the balance to Zero by paying the bank penalties. Once you pay the negative balance or dues you can close the bank account. However, your bank may force you to pay the negative balance. And also close the account if you don’t pay it within the given time.
It happens that sometimes we open the account and forget about them. But believe me, that is not a good practice at all. If you have not maintained sufficient balance in the account. Then it will attract bank penalties which will eventually become a negative balance. Ultimately the bank will make you pay the penalty so that your balance is positive again.
And if you are planning to close bank account with negative balance. Then no bank will allow you to close it if you have not paid the penalty for non-maintenance of sufficient balance. If you don’t maintain sufficient balance it will not only result in debit balance or dues. But this will also affect your credit score. And with a bad credit score, you will face difficulties in getting loans and credit cards from banks or credit unions.
What is the Process to Close Bank Account with Negative Balance?
If you have decided to close your account with a negative balance. Then there is a simple process you have to follow. Follow the instructions given below.
- Check the total negative balance you have in your account.
- Contact your bank to ask the reason.
- Deposit or Transfer the amount to Pay the Total Negative balance.
- Bring the bank account balance to Zero.
- Visit your bank’s branch.
- Speak with the bank officials and tell them that you want to close your account.
- Provide your bank account number and an appropriate identity proof document.
- Return your debit card, passbook, and cheque book if the officials demand from you.
- Follow the instructions given to you by the officials and your account will be closed.
How to Clear the Negative Balance?
You can follow the below-mentioned methods to pay your negative balance.
- Transfer Required Funds: Check the total amount that you owe as a negative balance. Now transfer the same amount of money from your alternative bank account.
- Deposit Money Offline: If you don’t have an alternative bank account, then you can visit the branch of your bank. Take a deposit slip, fill it with the due amount, and deposit the money into your bank account.
What is Negative Balance?
It is the balance that is due in your account and you owe to the bank. When the balance in your account is below zero then it is considered a negative balance.
Can Bank Force me to Pay the Negative Balance?
Yes, in some cases your bank may force you to close the bank account. This is because you have agreed to the terms during the time of opening the account.
Can My Bank Close the Account Without my Consent?
Yes, your bank can close your account with your consent if you fail to pay the negative balance within the time the bank has given it to you.
Can I Close a Bank Account With Negative Balance?
No, You can not close a bank account that has a negative balance. To close such an account you first have to pay the bank with the balance due and then start the process to close the account.