What happens if you close your bank account with money in it?
Tips / 17.07.2020
There’s a lot of useful information out there on how to open a bank account – what documents you need to bring, what information is required, how long it will take and what you can do with it.
But the question when it comes to closing your account is slightly different.
The fact behind this is that not many people close their accounts once they start using them.
But whatever the reason is, you may need to close your bank account. And in some cases, there are still funds in it.
So, what can you do if you find yourself in this situation?
Table of Contents
The first option you have available to you when closing an account with funds is to simply withdraw it in cash – from an ATM or at the cash teller.
When considering closing an account you’ve either probably not used much before or are ready to wind down after several years of use, it’s also likely that the funds available in this account are not of a high monetary value and thus be withdrawn without much hassle.
This will ensure your account balance is at zero and your account will be closed more efficiently, smoothly and quickly.
2. Deposits to a different account
Another option you have is to transfer the funds from the account you’re about to close to another open account you may have and may wish to continue using.
This will again make sure that your closing account balance is at zero while not losing your funds.
3. Head office and service charges
In other cases, however, the funds in your account may go to a central account or to the bank’s head office.
These funds will be checked, and should ultimately be claimed back by you.
Remember that banks usually charge fees for their services and some of the funds in your account may go towards this purpose.
Added perks: Statements and transaction history
Some banks in the UK offer the option of giving you your statements and transaction history for the last five years when closing your account.
In some cases, this is a value-added service, while in others it’s an optional extra.
So, check with your bank what type of information they can offer you upon closing your account.
Most banks, when closing your account, would like to see the account being at zero before they proceed with the closure.
If you have funds in your account, you can either withdraw them, transfer them, or the bank will deduct certain charges from them in order to cover its costs.
Whichever option you go for, your account should be at zero before closure to ensure there are no surplus funds floating around in the banking system which remain unclaimed.
Ultimately, every bank has their own procedure for bank account closures and you should double-check with yours what its procedure is.
This will reduce unnecessary or lengthy paperwork and procedures and will make the process hassle-free.
Disclaimer: Please be aware that the contents of this article and the myPOS Blog, in general, should not be interpreted as legal, monetary, tax, or any other kind of professional advice. You should always seek to consult with a professional before taking action, since the particulars of your situation may materially differ from other cases.