There are various factors that influence a customer’s decision to close a savings account, including less competitive interest rates, higher minimum balance requirements, unsatisfactory customer service, poor online service, high financial transaction fees, and multiple savings accounts.
As a result, if you want to close a savings account, you have to take several steps. It is important to note that the procedure for closing a savings account may differ from one bank to the next. In this article, we will walk you through the general steps involved in closing a savings account.
Things to Do Before Closing a Savings Account
When you decide to close your savings account, there are a few things you should consider before proceeding.
- You have to go to the bank directly because account closing cannot be done online
- Unlike most banks, Paytm Payment Bank allows you to close your savings account online by following a few simple steps
- If your account is dormant, meaning that it has been inactive for a long time, you must activate it first before closing it
- If you have a joint savings account, both joint account holders must be present during the account closing process. However, some banks require a ‘No Objection Certificate’ (NOC) if there is no one partner
- If you have a loan, credit card service, Demat & Trading account, or locker facility, you will have to decide what to do with them before closing the account.
- Prepare all official documents, such as your PAN card and AADHAAR card before closing your savings account
- Stop all automatic payments from the account you want to close immediately and link the payment process to a new bank account
- Transfer funds from your old savings account to a new account. The Paytm Payment Bank savings account, on the other hand, has no effect on the functionality of the Paytm wallet. This means that instead of transferring the remaining funds to another account, you can simply transfer them to your Paytm wallet and use them for regular transactions
- If this is a payroll savings account, be sure to send the new account details to your employer to receive the payroll credit on time
In addition, you can contact a banking officer who will advise you on the steps to take before closing the account.
Finally it’s time to close the savings account. It should be noted that, while different banks have their own terms and conditions for closing an account, some of the basic steps remain the same.
How to Close a Savings Account?
Follow these steps to close your savings account:
- Fill in the account closure form correctly, stating the reason for closing the account. Forms can be obtained from the bank or from the bank’s website. In the case of joint account holders, both account holders must fill out a form, or NOC can be used as previously mentioned
- Now, submit all the necessary documents, such as proof of ID, along with the bank kit, which includes a passbook, checkbook, and debit card
- Banking officials will review your account history for any dues, fines or pending charges against your account, which, if found, must be paid by the account holder
- If you have a credit card, Demat account, loan or FD account linked to your account, you must unlink it
- After submitting the required documents, forms and bank kit, you will be charged for closing your account. Again, the structure of the account closing fee will differ between banks based on the term of the account and the type of account
- The banking official will now give you an acknowledgment of account closure
It will take about 7-10 business days to close the account; however, the duration may vary from bank to bank. When your account is closed, you will be notified via SMS or email to your registered mobile number or email address.
While most banks in the country follow the procedure outlined above, Paytm Payments Bank allows users to close their savings accounts in fewer and simpler steps. Unlike other banks, no supporting documents, etc., are required to close a savings account.
How to close Paytm Payment Bank Savings Account?
Unlike most banks, which require a lot of paperwork to submit and special banking criteria that must be met before closing an account, Paytm Payments Bank allows you to close your account in just two steps without any documentation. Here’s how to close your Paytm Payment Bank savings account:
- Navigate to the ’24*7 Support’ section of your Paytm mobile app
- Close your savings account by submitting a ticket to Paytm Payment Bank
- Follow the instructions that appear!
Here’s a simple, fast and digital way to close an online Paytm Payment Bank savings account. It should also be noted that having a closed savings account has no effect on your Paytm wallet access. Even after you close your Paytm savings account, you can continue to use your Paytm wallet for day-to-day transactions.
What is the procedure for closing a joint account?
To close a joint account, the account holder’s signature and presence at the bank are required. To request account closure, both account holders must log in to the account separately. In addition, many banks accept NOC without a single partner.
Is it possible to close a bank account online?
No, you cannot close your bank account online; however, Paytm Payment Bank allows you to close your account online.
How to close an inactive account?
You must first activate your inactive account before you can close it. Connect with your bank and ask the relevant official to activate your inactive account, so you can follow the steps to close it. Find the option to activate your account on your bank’s website or mobile app, or visit your bank to activate your account.
What are the reasons for closing a bank account?
- Multiple bank accounts
- Not so satisfying customer service
- Lower interest rates
- Heavy fees for transactions
- Switching from child account to regular account