Closing a bank account is a very simple process if we follow the logical steps and make sure that we do not breach any clause of the contract with the entity. The reasons for an account closure can be multiple, either due to inactivity, or by hiring another option that is more advantageous for us in another bank.
Be that as it may, the step-by-step process to cancel a bank account without penalties or extra payments is very intuitive. In the event that we had some kind of commitment to stay (for example, the typical account with which we get a gift when the payroll is paid) we should comply with it before considering its cancellation.
It is possible that the entity allows us to terminate this commitment in exchange for an economic penalty.
This is what you should know before canceling the bank account.
First, if the account contains more than one owner, everyone’s signature may be required to perform any such operation. In the case of a single holder, there are no more difficulties.
Something similar happens in the case that we want to cancel the account of a deceased person: if he was the sole holder, it will be the heirs who carry out all the steps. If the deceased shared ownership, that co-owner will continue to control 50% of the money. If you want to know more in detail what happens to an account when the owner dies, we recommend that you read this article in depth.
Another important point, and that may seem obvious, is that it is highly recommended to have a new alternative account as soon as possible, and have it operational before canceling the current one. For example, you can search for an online account without commissions, which will give you the flexibility of online management and the peace of mind of not paying more commissions.
This cancels a bank account step by step
We will verify that the account can be closed without penalty. That is, we will verify the existence or not of the commitment of permanence, how much is left for it to end, or what penalty we would have to assume in the worst case. To do this, we must thoroughly examine the contract.
We relocate receipts and payments. We must do this by contacting each provider and changing the account number. In some cases, the new entity can make the arrangements, although they will need some data or documentation.
We cancel the products associated with the account: we pay all the credit card debt, loans or risk policies that we have contracted, and we cancel them before taking the next step.
We withdraw all funds from the account. All the money that is in the account while it is not closing will be playing against us. In addition, even if we do not use an account for months and the balance is zero or very small, we will continue to pay maintenance fees (if applicable). It is therefore appropriate to take out the entire balance and immediately move on to the next point.
We went to a bank branch to cancel the account in person. In case there is more than one owner, everyone must go. Once there, we must sign the cancellation and, in some cases, pay outstanding interest. If we cannot go to the branch we can call the entity and ask the alternatives to do it in a non-face-to-face way (for example, by means of a burofax).
We request the account cancellation certificate
It is very important and we should not let it go. This certificate will be the guarantee that the current account has been closed correctly and we will not have any more expenses associated with it.
One of the most frequent questions is whether it is free to cancel a bank account. The answer is that it depends. It should be, and in fact many entities do not charge anything for the cancellation, but as we said, we may have to pay late, or prorated, maintenance fees.
Another point that depends on the entity, and especially on the contract that we have signed at the time of opening the account, is that we charge other fees. For example, a commission for the cancellation itself. In any case, these commissions must be publicly accessible and must always be included in the contract.
Therefore, it is very interesting to always try to hire accounts without commissions, since in this way we will have to bear an expense less when the time of cancellation is reached.