should unused accounts be closed?

evei_2

I keep reading on here about posters having problems closing bank accounts.

Why do they want to close them?

I have quite a few bank accounts from when I used to follow interest rate increases and freebies and when finished with them I withdraw most of the money and leave a balance of 1p.

At the last count OH and I had 5 savings accounts and 4 current accounts all with a balance of 1p, between us.

Should we close them and if so why?

WhiteHorse

If you've got them, I'd keep them. Handy to have. You never know when you will want to use one. When you need one, it's apt to be sudden, and remember, bank accounts are getting harder and harder to open.

Just move a nominal sum in and out every year so the banks themselves can't close them.

jen245

Except of course if there are fees for not using them, like the under funding fees Santander charge if you dont pay in a certain amount per month, or the accounts that have monthly subscription fees, in those cases, close them, otherwise you could get a bill for hundreds a year or 2 down the line, as some posters on here have found out

AnonymousForObviousReason

Some close accounts to make sure they can apply for new customer only deals.

Loughton_Monkey

AnonymousForObviousReason wrote: »

Some close accounts to make sure they can apply for new customer only deals.

This implies you can hedge. In other words, if both of you have an account with same bank, then close one of them. Then at least (between you) you will qualify for the next 'goodie' whether it's for new or existing customers.

Seems you can never predict what each bank is going to do. CEO's bonus depends upon icreasing customer base? Then expect 'new' customer offers. CEO Bonus depends upon increasing customer retention, then expect 'existing' customer offers.

AnonymousForObviousReason

Loughton_Monkey wrote: »

Seems you can never predict what each bank is going to do. CEO's bonus depends upon icreasing customer base? Then expect 'new' customer offers. CEO Bonus depends upon increasing customer retention, then expect 'existing' customer offers.

CEO's bonus depends on upsetting all customers and getting them to leave, get purchased by Santander?

Loughton_Monkey

AnonymousForObviousReason wrote: »

CEO's bonus depends on upsetting all customers and getting them to leave, get purchased by Santander?

.... Who's strength and stability is built on the relationship they have with their customers. After all they know that the happier you are, the more likely you are to keep your business with them.

I know this is true because it's on their website.

pmduk

Loughton_Monkey wrote: »

I know this is true because it's on their website.

Next to the pictures of smiling cheery customers talking happily to friendly helpful customer service staff!

nzseries1

As well as the "you can get new customer deals" reason mentioned above, another reason to close is if you're renting, and move around a lot, it's one less organisation that you have to change your address with (some banks make it difficult).

And, if you forget that you have an account open and don't give them your new address, there's one less possibility that a bank will come to you years down the line demanding money because one day the bank started imposing charges, and couldn't get hold of you because you didn't change your address with them and suddenly you owe hundreds of pounds and have a CCJ against you.

Albansanne

This is really useful. My husband used to deal with all the finances but it's down to me since we split up. I keep finding statements etc so really need to keep track and probably close down accounts that I don't actually use.

Porcupine

If you have accounts that pay interest and you do Self Assessment, you have to declare to the taxman that you received 3p in interest last year on your account, and extract a tax certificate out of the bank to prove this. That might be a reason to close the accounts so you don't have to worry about them.