How to close Bank Account ?
In order to close the Bank account you need to have the bank account in the Bank. Many Bank has different approach and formality for closing the Bank account. The main process of closing the bank account is the same for all the bank. I will highlight the important method of closing the Bank account which normally many Bank follow.
Below are the steps which you need to follow.
Fill the account closing form
You need to contact to your existing bank and get the Bank account closing form from the Bank. Banks are some time had format which the details for the account closing need to be filled. The details in the form which normally ask you in the form that the account number which you are closing in the form. Name of the account holder in which the bank is. Place of the residence or address the account is opened. The Best short cut to find out the same details is the recent Bank Statement which you can get from your Bank. Look at the recent statement and refer the details mention in the Bank Statement. The same details you need to fill in the form. If you find any difficulty in filling the form you should contact the Bank Representative before filling it in the proper way.
You should know the Authorised signatory should sign the form. It you are individual you are alone handling the account then you should sign the form. If you are not alone and you had jointly made the account. Then you should get the signature in the form for the same person which you had sign at the opening the account.
In case of company you should get the signature of the Authorized Signatory or the Board of Directors can sing the form.
Make the account Balance zero.
Before closing bank account any one can think I should make account balance zero. But you cannot make zero as per the compliance issue of the Bank. The idea is that you should first ask the bank representative that. Is there any charges which the Bank is charging at the time of closing the account. If the bank tells that we charge some amount in closing the account. Then you should ensure that the charges should be kept as the minimum balance in the Bank account.
Pay the closing Charges.
If the Bank account is close. Then the Bank will be charging the “Account closing charges”. You need to pay the “Account closing charges”. But you need the charges from the existing balance in the account. You can pay the Bank with the other option and the Bank tell you. Many of the person close the account without applying the closing formality and to avoid charges. They don’t do any formality of account closing with the Bank. They just take out the whole amount from the Bank and file the application that my residence had change to bank. So Bank cannot search the person and they can avoid the Bank charges. But I don’t recommend not to do such kind of think. Just do all the formality of account closing and pay the closing charges.
Submit the Checks.
Need to submit to Bank all the check which the Bank you had taken from the Bank. You need to submit all the Check book which you had not used. Also if you had issue the checks make the stop payment of the check which issue and check which are not cleared. Checks which are not cleared are basically outstanding checks. You need to take back the checks which you had issued to vendor, this will avoid the check to come to bank If the account is closed.
Pass Board Resolution
In case of Company the directors need to pass the board resolution that the account is closed. The resolution is documented in the meeting of the Board.
Disposed of the documents
Don’t dispose the documents related to bank account closing. This is because that you can be required if the Bank had query regarding your account closing formality not completed properly. To answer the query you should keep the documents safe till some period. I would say you can keep till one year or your Audit period.
Always do all the formality with the Bank. This is as per the process followed each of the Bank. Fill the form and submit it properly. If any further question please contact me in the website tab.