Most of the banks allow their customers to open and close bank accounts several times. You can close your bank account through 7 simple steps;
- 1. Open a new account before you close the old one.
This is not mandatory. By this, you can avoid unnecessary expenses. It ensures that you won’t lose any deposits or payments.
- 2. Change your bank details for any direct deposits.
If you deposit the money directly into your account without informing the government you will able to pay income taxes provided by the government rates. It is not refundable if you paid the tax already.
- 3. Change your bank details for any pre-authorized debits.
If you pay bills through your old account ask your bank about the bill payments otherwise you may be charged an NSF ( not sufficient funds) each time pre-authorized debits are taken from your old account and it shows there is not enough amount to cover it.
- 4. Stop writing cheques on your old chequing account.
Keep the cheques that haven’t issued or cashed.
- 5. Monitor your accounts carefully
Confirm that the old cheques you wrote have been cashed or canceled. You can see the account statements through online banking.
- 6. Close your old account
Contact your branch bank and inform them you are planning to close your account. And ask them about the procedures and about the fee rates (if any). If there is any cash in your account you can withdraw or transfer to the new account with the help of bank employees.
- 7. Request verification that your account is closed
If you ask about the verification letter to the bank you will get an official letter contains the statement if the account is closed. It will arrive by postal in 5-6 business days. If you don’t receive the official letter contact the bank for the details.