When you are fed up with the services of our banks, you often don’t hesitate to close your bank account and open a new one with a different bank. Taking such action is legal, no one is going to criticize you for such a decision or throw your ass in jail. In the same vein, your bank can decide to end it’s relationship with you for several reasons, some of which my sound funny to you. So, imagine you waking up one day to discover that your bank has closed your account. What do you think will happen to the funds in your account?
A bank cannot close an account with money in it. If a bank decides to close your account and you have funds in it, your money will be returned before the bank proceeds to close your account.
If your bank suspects fraudulent activities on your account it’ll close it. If you are a huge liability to your bank, your account will be closed. If you overdraft your account frequently, your account will be closed. There are a lot of good reasons why a bank would decide to end it’s relationship with you. Some of this reasons, I must confess, may not sit well with you. But who cares? The banks have decided, there’s little you can do. So if your bank decides to close your account that has some funds in it, what would happen? I have that covered in this article.
What Does Pending Transaction Mean On Your Bank Account?
What Happens If a Bank Closes Your Account With Money in It?
Just as you can wake up one morning and decided to close your account with your current bank and open a new one, your bank can as well decide to end their relationship with you. A bank can make this decision for several reasons. Remember, a bank will always want to protect it’s customers and itself. If a bank consider you as a liability, it will cut you off immediately. Aside that, there are other reasons why a bank can decide to close your account.
Some of the reasons why a bank would close your account are:
- Suspicious fraudulent activity
- Failure to pay debt
- If it deems you a liability
- Failure to adhere to their regulations
- Harassing a staff
- Always tendering fake checks
The reasons why a bank could close your account varies per bank. Bank A may decide to close your account if you fail to adhere to their rules and regulations while bank B may decide to take a different approach. Banks have set out rules and regulations, if the rules states that if you do something your account will be closed then have it in mind that they will stick to such rules.
If a bank closes your account, you will be notified. However, in some cases you might not be. Some banks may alert you after closing your account while other may decide to alert you before closing your account. If you are guilty of an illicit act,such as money laundering, there is a huge possibility that your bank will not notify you before closing your account. Doing so will make it impossible for you to withdraw or transfer the funds in the account.
Also, if your account was closed due to a confirmed connection with an illegal act, like terrorism or something related, there is a huge possibility that you may not get the funds back.
A Bank Can Close Your Account Without Telling You Why:
Banks are obligated to close your account whenever they feel like. It is not illegal for them to do so. And it’s best you understand that they wouldn’t close your account for a stupid reason.
In addition, one thing you should understand about banks is that, they can decide to close your account without giving you a single reasons the same way you can decide to close your account without an explanation. Fair enough right?
Well, you see, while some banks may decide to close your account without giving you a reason, others, out of the kindness of their heart, may decide to let the cat our of the bank. Doing so will give you the opportunity to react if the bank has misunderstood the facts of a situation or made a mistake.
For instance, if your bank tells you that it closed your account because of suspicious fraudulent activities, you can decide to contact them and settle the issue if it was a misunderstanding, error, or a transaction that seem sketchy. If you end up convincing them and giving them good reasons to believe that your account isn’t tied with a fraudulent act, they should unblock the account. But If you can’t, then you can kiss the account goodbye.
Now, back to the main topic of this article. If, for instance, you have some funds in your bank account and your bank blocks it for one reason or the other, what would happen?
First off, before a bank blocks your account, it would return all your funds to you. It’s unusual for a bank to block an account with funds in it.
Infact, most banks would like to see your account at zero before going ahead to close it. Your money could be sent to you via a check. Some banks will send a check to your last know adresss.
Worthy to note is that, before sending you your money, your bank will deduct any interest or fees that apply.
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Is It Bad When Your Bank Closes Your Account?
Your account may be in your name. However, such doesn’t guarantee that it will last forever. The fact that you own an account doesn’t stop your bank from closing it whenever they feel like. As i said, it is legal for a bank to close your account especially when you break their rules. If a bank closes account for one reason or the other, should you see it as a bad occurrence?
There is nothing bad in a bank closing your account provided the reason isn’t bad, and provided you received the money in the account. If your account was closed due to a bad reasons, then it’s safe to say such occurrence is a bad one.
Remember to always ensure that you are in good standing with your bank so you don’t wake up one day and discover that your account have been closed. Contact your bank if you feel that your account was closed unfairly.
