Depending on the tenure with your bank, you can be charged differently for closing a bank account. For instance, inside a year of opening, if you close your account, the bank will levy further account closure charges. For the closure of a bank account in between 14 days of opening to a year just after opening the account, banks charge account closure charges.
If an person closes his account inside 14 days of opening it, banks commonly do not charge any further charges. Also, one particular can stay clear of getting charged for closure by the bank if one particular closes one’s account just after 1 year of opening it.
Most folks have to open new bank accounts on numerous occasions such as just after beginning a job or joining a new organization. However, just after leaving every organization, one particular is generally needed to open a new bank account. All banks have their personal month-to-month typical balance that wants to be maintained in each account and banks are very strict about it. As a outcome, to stay clear of possessing so lots of bank accounts and attracting non-upkeep charges, most folks opt to close them, but they also face further closure charges.
SBI (State Bank of India) does not charge their account holders any account closure charges, in case he/she closes their bank account just after 1 year. Earlier, SBI applied to levy a charge of Rs 500 if an account holder closed his/her bank account even just after 1 year of opening a bank account. However, if the account is closed inside 1 year of the opening date, the account holder will nonetheless have to spend charges. There is no alter created for account closure inside a year of opening an account.
Experts say these account closing charges are levied by banks to recover the expense incurred by them when opening an account and supplying an opening kit such as a debit card and checkbook. Earlier, banks also applied to charge about Rs 500 along with GST if a deceased person’s account was closed, which is mainly not levied by banks any longer.
Experts say, if one particular is unhappy with their banking services, he/she can close the bank account inside 14 days of opening it and also stay clear of closure bank charges. Note that banks generally levy account closure charges ranging in between Rs 500 to Rs 1,000 in case a present account is closed just after 14 days.
Keep in thoughts, the Reserve Bank of India (RBI) does not have any certain recommendations on closure charges. Hence, levying service charges depends completely on the bank’s discretion.