Opening a bank account is very easy these days. Provided you have all the documents ready which are required to open the bank account. In fact, if you contact any bank and tell them that you want to open a bank account. Then they will even come to your place and open a bank account for you.
This is the kind of privilege and respect that we get when we are opening a bank account. But what happens when we are closing the bank account.
Will we get the same amount of respect from the bank?
Yes, in most of the cases we get it. But the bank doesn’t want to let you go away. After all, they need more and more customers to be with them. And the banking business completely depends on the trust people show towards the bank.
If you are closing the bank account then somewhere you have lost the trust in the bank. And if the bank fails to retain you then the first thing happens is they lose a customer. And the other thing is you might tell others in your friend and family about your experience. This is nothing but the negative word of mouth.
But this is not the topic on which we are talking today. We have a different thing to deal with which is mentioned below.
Why Banks Charge You to Close the Bank Account?
There are so many reasons why the banks charge for the bank account closing process. But I will list out the major ones today for you.
They Just Don’t Want to Lose the Customer
The first reason is they just don’t want to lose the customer. You are very precious to them and they run the bank on the money which is deposited by customers like you. If you close the bank account then it is obvious that you will withdraw all the money you have in your bank account.
So here the banks try to put a bank account closing fees to avoid people closing the bank account. If someone cancels their plan to close the account just because of the account closing fees. Then this is where the banks win. Because if you have an active bank account you will receive the funds one or the other day in that bank.
You are Taking Your Money Away From Them
As already mentioned banking runs on the trust of the people. They do the business with the money you have saved and deposited in your account in the bank. So you are taking your money away which obviously means it is affecting the business of the bank. To avoid these things they start charging the people when closing the bank account.
It Costs them Money to Give You Documents
When someone opens a bank account they get documents from the bank such as the bank passbook and the checkbook. The bank prints your name on these documents and then they supply these to you. It costs them a good amount of money to make these things ready for you.
And not they are charging you for the same. When you are closing the account you have to submit these documents back to them. But even after you submit these those documents are of no use to them. So they are just taking that cost back from you when you close the bank account.
Debit Cards and Credit Cards
Just like the documents they banks even provide us the debit cards and credit cards. The costs incurred for these supplies are even higher when we compare them to the documents. Because need to be powered by some payments system provider.
Here we are talking about the Payment system providers like VISA, Mastercard, American Express, etc. The bank has to pay them for the services we enjoy. So this is also one of the reasons why the banks charge the customers to close the bank account.
Internet Banking Systems
Managing the online services, servers, and their security is a huge IT challenge to the banks. They are putting in so much money to keep these services alive. And when you had the bank account with the bank you will be using it more often. But you were not charged high when you were using it. But now they want you to pay.
These are just some of the reasons why the banks charge their customer when they want to close the bank account. Other than this even the human resource of the bank is also used when you are using their services. Because of all these services the banks charge you to close the bank account.