Joint accounts are a common way for couples, business partners, or family members to manage their finances. However, there may come a time when you need to close a joint account. It could be due to a breakup, death of one of the account holders, financial difficulties or any other reason. Closing a joint account can be daunting and stressful if you don’t know the proper steps to take. In this article, we will discuss 15 steps that will guide you on how to close a joint account.
1. Discuss the decision with your co-account holder: The first step in closing your joint account is to have an open discussion with your co-account holder about why you both want it closed and what needs to be done before closing the account.
2. Decide who owns what: Determine who owns what percentage of the balance in the joint account so that each party gets their fair share after it’s closed.
3. Stop using the Account: Once both parties have agreed on closing the joint bank account, stop using it immediately and start making arrangements for alternative payment methods if necessary.
4. Pay off all outstanding debts: Before attempting to close down your joint bank accounts make sure all outstanding debts such as overdrafts or loans associated with that particular bank are paid off.
5. Inform Your Bank About Closure Request: Contact your bank’s customer service team either via phone call or email requesting closure of your Joint Account(s).
6. Fill out appropriate forms/documents: Most banks require specific documentation when closing an account which may include filling out relevant forms or providing identification documents such as passport copies etc., ensure you provide these promptly upon request
7.Provide Proof Of Identity And Address : You will likely need supporting documentation like ID cards/passport copies and proof of address (e.g utility bills) from all named parties listed on the Joint Account
8.Cancel Direct Debits Or Standing Orders Linked To The Account: Ensure any standing orders or direct debits linked to the joint account are cancelled or transferred to a new account before closure.
9. Transfer Funds To Individual Accounts: Transfer remaining funds in the joint account equally among all parties involved.
10. Close The Account : Once all necessary steps have been taken, it’s time to close your Joint Account by visiting your bank branch and following their specific guidelines for closing down accounts
11. Check For Any Remaining Fees: Ensure that there are no outstanding fees on the account before you proceed with closure, otherwise you may incur additional charges.
12.Update Your Records: Update any relevant records such as bills or subscriptions with your new individual bank details where applicable.
13.Get Confirmation Of Closure In Writing: Request written confirmation of the account closure from your bank for future reference.
14.Destroy Unused Cheque books And Debit Cards: Destroy any unused cheque books or debit cards associated with the closed Joint Account(s) to avoid fraud if they were to fall into wrong hands
15.Monitor Your Credit Report : Keep an eye on your credit report after closing down joint accounts to ensure there are no errors and that everything has been updated correctly.
In conclusion, closing a joint account can be stressful and time-consuming but it doesn’t have to be complicated if you follow these 15 steps carefully. Remember always communicate openly with your co-account holder, stay organized throughout the process and don’t hesitate to contact customer service at your bank for further guidance if needed.