Major Reasons Why You Should Close Your Old Bank Accounts

Bank Accounts are great, they are amazing. But we should also consider the fact that if anything gets too much it turns dangerous for you. And this fact is true even in the case of the bank accounts. If you have too many bank accounts. Or say you have multiple bank accounts out of which you don’t use a few. Then you should seriously consider closing old bank accounts.

In this article, I will explain to you why you should close old bank accounts which you don’t use anymore. In every country, there is a separate wing of government that keeps an eye on all the bank accounts in the country. Every transaction is being observed by your government. And in the same way, the government in your country knows about the number of bank accounts you have.

Reasons Why You Should Close Old Bank Accounts

Let’s get started and check out the major reasons why you should close the bank account you are no more using.

Tax Department is Watching

As already mentioned there is a tax department in every country and they are looking at all the transactions and the bank accounts in the country. And even they know how many accounts you have in the banks. So now let us consider that you have not used one of your bank accounts for a long period of time. And your account is at the edge of being considered as Dormant by your bank.

And you started using the account suddenly. Then it is quite obvious that money will start flowing in and out. But this is not normal. Because the tax department of your country will be monitoring your account very closely. Sometimes these things sound like a fantasy. But if you do a little research on this matter then you will come to know that this happens normally in every country.

Average Balance

Let us consider that you have 3 savings bank account and there is a requirement to maintain a certain amount of average balance throughout the month. Say the three bank accounts you have are A, B, and C. Now all these banks have a rule that you have to make sure the average of the balance you maintain throughout the month should be $30. Then it gets hard to maintain $30 in all 3 of your bank accounts.

To make sure that these kinds of things should not happen to you. You should consider closing the bank accounts which you are not using. Keep the accounts that you use often and not all the accounts. It won’t take much of your time to close your unused bank account. Just get in touch with your bank and complete the process of closing the account. If you don’t know the process of closing the account. You can refer to websites like Account Closers and get your account closed.

Annual Maintenance Charges

Every bank account comes with annual maintenance charges. These charges are deducted once a year from our bank account. But they go unnoticed and that is why nobody in the banking industry talks about this. But the truth is you have to pay the annual maintenance charges for all the accounts you have. Not only for the accounts even the debit cards come with annual maintenance charges.

Your Account Might be Missued

I had mentioned that the tax department of your country will be having an eye on your account. The major reason why they do is to make sure that the bank accounts are not being misused. And if you have any account which is not used for a long period of time. Then it will attract the fraudsters towards your account. And then your account may be misused by the fraudsters.

Conclusion

These are the major reasons why you should consider closing the bank accounts which are not being used by you anymore. If you have any other reason why someone should close the account then why don’t you put them in the comment section below?

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