Closing a Current Account: Process, Closing Letter, & Formats

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03 NOVEMBER, 2023

Closing a bank account is a decision that individuals and businesses may need to make for various reasons. Understanding the steps involved in this process is essential to ensure a hassle-free experience. In this article, we will explore the current account close application process and provide you with a sample letter to make the process smoother.

Why to Close a Bank Account?

There are many reasons people think of closing a bank account. Some reasons include a change in banking preferences, consolidating multiple accounts, or reducing charges and fees. Many times, bank accounts become inactive due to inactivity, prompting account holders to close them. Other key reasons include security concerns following fraud or relocations to areas where the existing bank lacks presence. Poor customer support or disappointing banking experiences may lead to account closures. Significant life situations or a shift in financial circumstances can also lead to closing or transferring accounts.

There are some common reasons why individuals and businesses decide to close their current bank accounts. Understanding these reasons can help determine if closing your account is the right choice. Some common reasons for closing a bank account include:

Common Reasons People Close Their Current Accounts

Insufficient use of the account: If you rarely use your current account, it may not make sense to keep it open.
Relocation to a different location: If you're moving to a new city, state, or country, you may find it more convenient to open an account with a local bank.
Better offers or services from other banks: Sometimes, another bank may offer more attractive interest rates, benefits, or services that align better with your financial goals.

How to Close a Current Account?

Visit the bank in person: To initiate the account closure process, visit your bank's nearest branch. Doing this is essential, as most banks require physical presence for account closure requests.
Speak to the bank representative: Approach one of the bank's customer service representatives and inform them about a current account closing form. They will guide you through the necessary steps.
Request an account closure form: The bank representative will provide an account closure form. This form is a crucial document for officially closing your account.
Fill out the form completely: Take your time to fill out the closure form accurately. Ensure all required details, including your account number and personal information, are correctly filled in.
Return all account-related items: Gather all account-related items, including chequebooks, debit cards, and other related things. Return these items to the bank, as they are usually required to complete the closure process.
Receive account closure confirmation: Once you've submitted the necessary documentation and completed all the steps, the bank will process your request.

What Are the Required Documents to Close the Current Account?

When you decide to close your current bank account, you'll typically need the following documents and identification:

Account closure request form: This is the primary document for closing your account. You can obtain it from the bank's branch or website.
Identification proof: Carry valid identification documents, such as your passport, driving license, Aadhaar card, or any other government-issued ID card.
Account-related items: Ensure you have returned all account-related items like chequebook, debit card, and passbook.
Address proof: Some banks may request an address proof document like a utility bill or rental agreement.

How to Write a Letter to the Bank for Closing the Current Account?

Format of a Current Account Closing Letter

When writing a letter to close your current account, follow this format:

Date: Start by mentioning the date when you write the bank's current account closing letter.
Recipient: Address the letter to the bank's branch manager or the appropriate authority.
Subject: Clearly state the letter's purpose as "Request for Account Closure."
Body: In the body of the letter, include your account details, reason for closure, and any additional instructions.
Closure: Sign the letter and provide your contact information for further correspondence.

Here's an application format for closing a current bank account you can use as a reference when drafting your application.

Current Account Closing Letter Sample

Each bank has its own closure form and also require you to submit relevant supporting documents as per your constitution for account closure.

It is best to contact your bank to obtain the correct format and list of documents required for account closure.

Also Read- Know How to Open Current Account in India

Close Current Bank Account: FAQs

1.) How do I write a letter to close my bank account?

To write a letter to close your bank account, start with the date, address it to your bank's branch manager, mention the purpose in the subject, provide your account details, explain the reason for closure, and sign it with your contact information.

2.) How do I close a company's current account?

Closing a company's current account involves steps similar to closing a personal account. Contact your bank, obtain the account closure form, provide necessary closure requests and documents as per bank’s policy and fill it out with company details, and return all relevant items.

3.) How can I close my bank account permanently?

To permanently close your bank account, visit your bank, request an account closure form, fill it out accurately, return all account-related items, and ensure a zero balance. Your bank will confirm the closure.

4.) How do you write a letter to close an account and transfer funds?

To close an account and transfer funds, write a letter for closing a current account to your bank requesting the account closure and specifying where to transfer the remaining balance. Follow the bank's instructions.

5.) What happens if you don't use your current account but don't close it either?

An inactive current account with a balance may still incur fees and maintenance charges. It's advisable to either use the account or consider closing it to avoid unnecessary maintenance charges and costs.

6.) How can I write an application to close my current bank account?

To write an application to close a current account, address it to the bank's branch manager, mention the purpose in the subject, provide your account details, explain the reason for closure, and sign it with your contact information.