What Happens When You Close a Bank Account?

Bank Accounts are very important and we all know it very well. These days it will even get difficult to receive the salary from our employer if we don't have a bank account. That is because these days the electronic mode of payment is used. If you don't have a bank account then your employer will probably force you to open a new bank account.

But in certain scenarios, we have to close the bank account we have. And for this to happen there are so many reasons. But the question for today is what will happen once you have closed the bank account you have. How the bank will treat you now onwards and will they allow you to open a new account with them again.

These are the questions that will be covered by me in this blog. Closing down a bank account is no big deal these days. If you don't like the services provided to you by your bank. Just choose a new bank that is operating well in your state or country and get a new bank account with them.

That's it then things will be fixed. But when we are closing down the account there are so many terms and conditions to keep in mind. There are some hidden fees and charges that may or may not be applied to you. The bank will ask you to pay the fees in certain conditions.

What Actually Happen After Closing the Bank Account?

Now let us understand what will actually happen when you close the account you have with your bank. While writing this guide I referred to many web portals like Account Closers and Wikipedia, etc. this guide is totally based on the information I got from these online portals.

No Deposits and Payments

This thing is very clear when you don't have a bank account then how can you receive deposits or make the payments from your bank account. The first and the major thing that will happen is you just can not make any payments or deposits.

Even if your employer transfers your salary to the bank account that has been closed by you. The payment will be failed. The money will go back to the bank account from which it was transferred to you. That is the bank account of your employer.

There will be no way to make the payment from the bank account which you previously had with the bank. No matter how urgent it is you just can not get the money in and out of the bank account that has been closed by you. So you have to make sure that you open a new bank account before you close the existing one.

No Debit Card, Credit Card, and Cheque Book

When you go to your bank and tell them that you want to close the bank account. The bank will ask you the reason for what is making you close the account. They will try their level best to change your decision. But at the end of the day, it is your decision and the bank can not force you to stay with them.

Once your account closing process starts the bank will ask you to return your Debit Card, Credit Card, and the Cheque Book that is issued to you by them. So while going to the bank you need to make sure that you are carrying all these things with you.

All Automatic Payments will be Stopped

If you have set up too may automatic payments with your bank account. Then this is bad news for you. Because all your automatic payments will be stopped. The bank will stop all the EMI installments that were set up from your bank account. So if you are using automatic payments then you have to make sure you change the settings.

Open a new bank account and set up all the payments to be done from your new bank account. Because if your bill payments and the EMI installments are stopped then it will harm your credit score. And if your get your credit score harmed then it is really bad news for you.

No Access to Internet Banking and Mobile Banking

Once your bank account is closed your internet banking and mobile banking services will be withdrawn. You will be no longer allowed to use the internet banking portal of the bank. And even if you have the mobile banking application installed on your smartphone it will stop working.

Account Number and Other Details will be Invalid

Your bank account number will not be valid anymore. And you should also know one thing your old bank account number will not be allotted to any new customer. It will be completely abandoned by the bank. The case remains the same for your customer id as well.