Whether you are moving, your bank’s interest rates are too high, or you don’t like the customer service, sometimes switching to a new bank is the best thing to do. It is normal to want to find a better place to do your banking, and you should go for it. If you are in any of the situations mentioned, you should send a bank account closure application to your bank.
When banking, it is a fact that you will have to part with a certain amount for fees. However, some bank fees are significantly higher than others for the same services. If this happens, then it is a clear sign that you need to go. Send a bank account closing letter to your bank to tell them that you want to close your account, and then open a new account at a bank that you like and is easily accessible.
How to write a bank account closure letter
When writing an application for closing bank account, an official letter is the way to go. You may choose to mail the letter to the bank or take it to the bank manager.
One general rule that is applied to every official letter is that you should keep it clear and concise. Wordiness may be advised in other types of letters but not in this one. Keep the following tips in mind when drafting your letter.
1. Address your letter to the right person
For starters, you should ensure that you address your letter to the person in charge of closing accounts. Physical letters can easily get lost, and you want to be sure that the letter ends up on the right desk.
This will not require a lot of research since the person’s name is sure to be readily available if you call customer service. In most cases, the person in charge is the branch manager.
2. Include your account number
For a bank to know which account to close, you will need to give them some information. Include your name, account number, and any tax ID numbers that are associated with the accounts. This is especially important if you have more than one account at the bank, and you only wish to close one of them.
3. Give your new account number
If you have any remaining funds in your account, you can ask the bank to mail it to you or to send it to any other account of your choosing. It is important to note that some banks charge a nominal fee for this procedure so they may deduct the fee from your account balance. Find out whether your bank does this or not so that you know what to expect.
4. Return any bank belongings
When closing your account, you will have to return your debit cards, passbook, and your cheque book. It is customary to send these items together with your bank account closure application.
Sample letter to close bank account and transfer funds
Every official letter follows the same format. You should include a heading, a salutation, a few paragraphs that make up the body, a complimentary close, and a signature. Here is a sample of a current account closing letter format in word.
September 2, 2020
The Branch Manager
RE: Bank account closure account application
Dear Mr Rashid,
Due to some personal circumstances, I am unable to maintain my account at your bank. This is to kindly ask that you close my current account (Account number 1234567890) that is registered under the name Mary Jane. Along with my application, you will find enclosed my chequebook, debit card and my bank passbook.
I request that you initiate a bank transfer of the current balance in my account to the account details mentioned below. I will highly appreciate it if you begin the process as soon as possible.
Account name: Mary Jane
Account number: 0987654321
I appreciate any help you can provide.
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What to do before you close your bank account
Before you send your letter, you have to put your affairs in order. This is to avoid any complications while further along in the process.
1. Ensure that you conclude all your transactions
Closing an account is not possible when there are outstanding checks or automatic payments that have already been scheduled. Before you close your account, ensure that you have changed your account information to reflect your new account. Confirm that the update has taken place before you close it.
2. Transfer your remaining money yourself
Although banks will always transfer all your remaining money to the account you specify, the process will go a lot faster if you do it yourself.
3. Unlink your cards
Your bank account is most probably linked to your cards. Ensure that you de-link them and link them to your new account. You could also get a new card for your new account before you delete your account to avoid any mishaps.
4. Check your bank balance
Closing a bank account is impossible if the balance is negative. It is also important to know whether the bank deducts any bank closure fees. This is because if the money in your account is less than the fee being deducted, your account will be treated as having a negative balance.
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Can you close out a bank account online?
Yes. Closing a bank account online is a definite possibility and is often easier than sending a physical letter for both parties. There are several ways to do this.
- You can transfer all the money remaining in your account to your new one. In some banks, the account closes automatically once the bank account balance is zero. In others, you will have to click the close account button in your account.
- Some banks will require a request for account closure that should be emailed to customer service.
- Calling customer service is also an option that you can take if you don’t like any of the other options.
After sending your bank account closure application, you should wait a while until you get confirmation that the account has been closed. Double-check to ensure that it has indeed been closed. Although it is not always required, using a hand-signed letter adds a layer of financial protection as it leaves a paper trail that isn’t available when you send an email or call the bank to close your account.
The letter serves to convince the admission panel that you are the right addition to their institution. Read this guide to be able to write a letter that the panel won't be able to turn down.