Definition:

A closed account is an account that has been terminated by the customer or the bank.

Reasons for Closing an Account:

• Account closure requested by the customer: The customer may decide to close an account due to various reasons, such as moving, changing financial circumstances, or simply wanting to consolidate accounts.
• Account closure initiated by the bank: Banks may close accounts due to inactivity, fraud, or suspected illegal activity.
• Unsatisfactory credit history: If a customer has a history of late payments or other financial irregularities, the bank may close their account.
• Minimum balance requirements: Some banks have minimum balance requirements, and if the customer’s average balance falls below the required minimum, the account may be closed.
• Fee changes: Changes in fees or charges associated with the account may prompt the customer to close it.
• Migration to another bank: The customer may decide to transfer their account to another bank for better rates or services.

Process of Closing an Account:

1. Contact the bank: The customer must initiate the account closure process by contacting the bank. This can be done through phone call, online banking, or branch visit.
2. Completing the necessary forms: The bank may require the customer to complete forms or provide documentation, such as a written letter of closure or a signed account closure form.
3. Finalizing the closure: Once the necessary forms and documentation are completed, the bank will review the account and initiate the closure process.
4. Final settlement: Any remaining balances or outstanding transactions will be settled, and the account will be closed.

Additional Notes:

• The bank may impose fees or penalties for closing an account early.
• It is important to notify the bank of any changes of address or contact information to ensure proper account closure.
• Customers should review their account statements and any associated fees before closing an account.