There are a variety of reasons why someone might want to close their bank account at any time. Problems with account costs, as well as upgrading or downgrading account type, may be reasons for wanting to close a bank account.
Upgrades and downgrades of a bank account, on the other hand, can be done with the same bank without closing an account. A bank account downgrade or upgrade requires a new transaction account type, which can be accomplished by simply changing the account type rather than opening a new account.
We can’t live in the twenty-first century without a bank account. Salaries and other forms of income are deposited into a bank account, making it necessary to have one. Account-holders can also make payments to other accounts without having to visit the bank.
Since a bank account is necessary to have, closing one account necessitates the opening of another. Let us begin by discussing how to close a bank account in South Africa, and then we will move on to actions to take when closing a bank account.
How can you close a bank account in South Africa?
Closing a bank account is simple and only takes a few steps. The simplest way to close an account is to go to a bank branch and speak with a consultant who will assist you in closing the account. When visiting a bank branch to close a bank account, one must bring their ID or passport. Some banks charge a fee to close a bank account at a branch.
Another option for closing a bank account is to call your bank and request that your account is closed. This method will almost certainly cost you a fixed fee, which is sometimes communicated before closing the account. You will be asked security questions to confirm your identity before the process starts.
A bank’s online banking service can be used to close an account. Each bank has its own method for doing this. In most cases, the option to close a bank account can be found in the manage accounts section. Depending on the bank, the account can be closed immediately or after a certain period of time.
When closing a bank account, make sure there are no funds in the account because the bank cannot close an account that has funds in it. Furthermore, if the account is overdrawn, the bank will not close it, so pay off the overdraft before closing the account.
What to do when closing a bank account?
There are a few things you must do when closing an account. If you have distributed your account information since the first time you had your account, you must notify people of the new account details as well as take other actions to ensure that transition to the new account is much more efficient.
Here are things to do when closing a bank account.
Open a new banking account
This is the first step in closing an existing bank account because you cannot live without a bank account since it will cost you money.
There is an assessment that must be made when selecting a bank account. You must understand the new account type you are opening, the costs associated with the account, savings interest rates, and the bank that provides the account.
A new bank account can be opened online, by phone, or in person at a bank branch. There are various types of banks that can be used; whether you choose traditional banks, Neobanks, or online banks, this is something to think about.
Notify your employer of your new bank account
The accounting department at work will have to make changes to your banking information. To change your banking details, obtain a bank confirmation letter from your bank and give it to your employer.
Make sure your banking information is up to date before the salary date, as you don’t want to miss out on payments for accounts you owe, etc. If you are a business, notify your debtors by providing them with new banking information.
Notify suppliers of the bank account changes so that debit orders can be scheduled to the new account. The manner in which you notify debtors and creditors will be determined by the type of business you run, and also research on which mode of communication to use will have to be conducted.
Switch payments and deposits to the new account
All debit orders associated with the account being closed must be transferred to the new account. Debit orders may include, but are not limited to, the following:
- Motor vehicle installments,
- Medical insurance,
- Life insurance,
- Store credit repayment,
- Mortgage loan repayment,
- Netflix payment, etc.
The majority of debit orders can be switched by adding a new card to the payment gateway used by the service provider. However, in some cases, you may need to contact the service provider and provide them with the new account information.
Switching other deposits aside from salary is also something to consider. Any earnings from gigs must now be deposited into the new account. As a result, if you have a Fiverr or PayPal account, change the account details you previously entered to the new account details.
Get a confirmation letter of the account closed
When closing a bank account, you must obtain a confirmation letter from the bank stating that the account has been closed. If you ignore this, you may end up owing a bank. Your bank account can be overdrawn due to fees charged by the bank, which will result in your account being turned over to debt collectors if the overdrawn amount is not cleared.
A bank account is so important these days that having one is a must. Closing a bank account may appear to be an impossible task, but after reading this article, it is clear that closing a bank account only takes a few steps.