How do I close my bank account?

mattpatch

Hello,

I currently have three bank accounts. I want too close two of them so I am left with just my Graduate account with Abbey National (Santander). This account requires me to pay my monthly wage into the account.

How do I close the other two bank accounts? Is it a simple as going in and telling them... job done? or do the banks need a period of notice? Also will this affect my credit rating?

Thanks for your help,

Matt Patch

YorkshireBoy

Depends who they're with. Some you must write...some you must phone...some you can simply call into a branch. However, the closure procedure will be detailed in your account T&Cs. Suggest you read them. Some banks require a period of inactivity before formally closing the account (to allow for any cheques written/debit card transactions made to filter through - with A&L it's 10 working days for example).

Closing a current account will not usually harm your credit rating*. Indeed, closing an account which has an overdraft facility could actually improve your credit rating, particularly if applying for a credit card, because it's a line of credit that is no longer available to you.


* One exception being if the account has been held a long time.

mattpatch

I am going from an RBS Royalties Gold account with a £1,800 overdraft, to a Santander Graduate Account with a £1,000 overdraft limit. Two problems:

1) I need to get Santader to match my overdraft (They said they can match it if I can prove RBS overdraft limit was £1,800)

2) Both the RBS account and the Santander Account need me to pay my monthly wage into the account. What will happen during the transitional period when I have two accounts open? If I don't pay my wage into the account one month, will this damage my credit rating, i.e. leave a missed payment type mark?

Thanks for you help.

missile

1.You ought to have some paperwork from RBS which confirms your overdraft limit?
2.Write to RBS and tell them you are switching to Santander and wish to close the account. Be careful you do not go overdrawn and it should not be a problem. Keep a copy of your letter.

olly300

missile wrote: »

1.You ought to have some paperwork from RBS which confirms your overdraft limit?
2.Write to RBS and tell them you are switching to Santander and wish to close the account. Be careful you do not go overdrawn and it should not be a problem. Keep a copy of your letter.

Send the letter to RBS by recorded delivery and keep the slip.

I've had difficulty with RBS in the past pretending they didn't receive letters.

Unfortunately lots of banks make it difficult to close accounts as that means they have one less customer to sell stuff to. Some prefer to downgrade the account to a non-fee paying one rather than lose a potential lucrative customer.