Saving account, keep these 5 things in mind, you will avoid big losses

Generally, closure charges are levied if any bank account is closed within one year from the date of opening. If you want to avoid this charge, you should avoid closing the account for 1 year from the date of opening.

It is a good idea to have separate savings accounts with one bank or more than one bank. This has many advantages. Benefit from bank offers. Many people keep their money by opening accounts in the different banks. It avails the offer of all banks. 

Also, if one bank closes down, there is no danger of losing all the money. However, having multiple accounts in more than one bank also has its disadvantages. If all accounts are not maintained properly, charges are incurred. In such situation people also close their accounts. If you are also one of those people who are going to close the savings account . So keep some special things in mind.

Keep a record of the bank statement

before checking the balance of the account you want to close. Check balance, download statement and keep last 2-3 years statement record with you. This will come in handy for future reference. If money has been transferred to an account and the information is wanted later, only the record of the statement will be useful. This statement will also be an useful in the filing income tax returns.

Pay the service charge due

if your account balance is in negative. Then the bank will not an allow the account to be closed. A negative balance occurs because you have not maintained the minimum balance in the account. There will be no service charges or fees due. A negative account means your credit score will also be bad. To avoid this, first pay the service charges etc., then close the account.

Standing Instruction and Automated Clearance 

If the savings account has running EMIs for bills and monthly subscriptions, first cancel such standing instructions. If automated clearance is linked to the savings account, cancel it first as well. Closing an account without cancellation may result in missed payment cycles. With this your credit report will go negative.

Account Closure Charges 

Many banks charge account closure charges to customers. This charge is levied only for a certain period from the date of account opening. Generally, closure charges are levied if any bank account is closed within one year from the date of opening. If you want to avoid this charge, you should avoid closing the account for 1 year from the date of opening.

Update Account Details The savings account

you are going to close may be EPFO. Insurance policy, saving scheme of income tax department is running. In such a case, before closing the account, you are required to update any other account in all these plans. Otherwise, after the account is closed, the benefit of the scheme will not be availed. 

Many people run Systematic Investment Plans i.e. Mutual Fund SIPs on savings accounts. When you withdraw money from a mutual fund, the money will go into the account linked to it. Closing the account in such a situation will make it difficult for you to get money.