How to Close Bank Account: Samples and Things to Consider

In India, an average person has more than two bank accounts, which results in receiving multiple bank statements and payment of associated bank charges. One of the best things an individual can do to reduce these costs and save money is to close a bank account which is not in use. However, accomplishing this can be complicated.

Different banks have different account closure procedures. These conditions may be as complex and arbitrary as "account holder must wait for at least six months before closing and reopening an account," or they may be as straightforward as "an individual must open another account and then close the existing one." This blog will guide you through the fundamental procedures for closing your bank account with utmost ease through an account close application. 

Bank Account Close Application

A bank account close application is a form that an individual can use to close a bank account. When an account holder wants to close their account and remove all their funds, they often use an application for the same. Additionally, if an account has been inactive for a while, it may be closed using the application.

To close your bank account, you must submit an application letter to the management of the bank branch. The closing account application consists of basic information about the account holder, the account that will be closed, and the reason for the closure.

Additionally, you should ensure that you include any required paperwork, such as a bank passbook, chequebook, debit card, and credit card.

The application must be signed and sent to the bank manager in person or via email. It could take the bank 3 –10 days to finalise the application and close your account after the submission of the application to close the bank account. 

Why Close a Bank Account?

An individual might need to close a bank account for several reasons; the most obvious is that it is no longer used. Other reasons to close a bank account include the following:

• Your bank charges you exorbitant fees for anything, such as low-balance or cancellation payment fees.
• You have a bank account that has been dormant for a long time.
• You want to move your bank account to another bank. But the new bank will only allow you to open an account when the old one is closed.
• You are splitting up different types of transactions among various bank accounts, but you no longer require all of them.

Regardless of the reason behind putting forward an account closure, you must write a close account application to the bank. Submit the same to the bank branch, and the rest of the procedure will be taken care of by the bank executive. 

How to Write a Letter to Close a Bank Account?

If you wish to close a bank account by writing an application to the bank executive, you must ensure that you write it appropriately. The bank account close application must be written in the correct format to avoid delay. 

There is a set format for an application to close a bank account. However, the application can differ slightly from bank to bank, but the basics remain the same. 

Here are three sample formats for bank account close application to make it easy. 

Format of an Account Closing Letter

The basic format of an account closing letter is as follows:

The Branch Manager

Bank Name 

Address of the Bank 

Date in dd/mm/yy format

Sir/Ma'am,

[Body of the letter]

Thanking you

Yours Truly,

Name and Signature of the Account Holder

[Name of the Account Holder] 

The content in the letter body changes as per the case scenario, and the rest of the information remains the same. 

Sample 1 – Current Account Closing Letter

The Manager

State Bank of India

Sector 14

Gurugram

11/01/2023

Subject: Request to close the current account

Sir,

I am Reema, and I hold a Current Account in your bank. I want to close my account as it has been a few months since I have been able to keep it up due to personal issues. With this letter, I include the account passbook. Please take the necessary action and start the account closing procedure right away.

Thanking You

Yours truly,

[Signature]

Reema

Sample 2 – Letter to Bank Manager for Closing Account

The Manager

State Bank of India

Sector 14 

Gurugram

11/01/2023

Subject: Request for closing account

Sir,

I have an account in your bank branch with account number 030********6032. Recently I relocated to Bangalore, and I could not access the account frequently. Thus, I would like to close the account. I request you to clear all transactions and transfer the balance amount to my other bank account (Account Details including number, bank name, and IFSC code)

Thank You

Yours truly

[Signature]

Reema

Sample 3 – Bank Account Closing Letter

The Branch Manager

HDFC Bank 

Sector 7

Faridabad

January 11, 2023

Subject: Application to close the savings account 

Ma'am/Sir

I am Reema, and I have a savings account in your bank with account number 8976000067854321. I am moving to Madhya Pradesh for personal reasons and would like to close this account as soon as possible. I have transferred the balance to my other account and would request you do the necessary to close the account., 

I have attached the bank passbook, identity, and address proofs for your reference. 

Thanking you

Yours truly

[Signature]

Reema

Things You Need to Close a Bank Account

To put forward a seamless account closure procedure, you will need the following things: 

1. Name of the Account Holder
2. Bank Details such as Account Number
3. Original Bank Passbook
4. Cancelled Cheque (if you have a chequebook towards the closing account)
5. Debit Card and Credit Card
6. ID Proof documents such as Aadhaar Card, PAN Card
7. Residence Proof, including Aadhaar Card and Voter ID Card
8. Photographs of the Account Holder

Having these details and documents beforehand will fasten the account closure process.

Things to Know When Closing a Bank Account

There are certain things that the account holder must take into consideration while closing a bank account to eliminate later-stage hurdles. Here is what you must keep in mind.

Transfer/ Withdraw the Amount 

When you close a bank account, ensure you either withdraw or transfer the money to another account. You can use an online application, NEFT, or RTGS to transfer the account or make a cash withdrawal. 

Deactivate Automatic Payment

If you have activated any automatic payments from that specific account, deactivate it before closing. These automatic payments include direct deposits, utility bill payments, and other automated transfers.

Close Any Associated Accounts

If there is any associated account, ensure you close both accounts. Whether it is a joint account or any sort of investment account, if they are associated, both must be closed in one go.

Destroy Debit Cards, Credit Card and Cheque Book

When you close the bank account, destroy or submit the cards and chequebook to the bank. You must do so to ensure that no one uses them again.