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.
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.