How to close a savings bank account in 2025: All you need to know

Have you moved cities or changed jobs recently? What happened to your salary account? It’s easy to overlook an old salary account that quietly converts into a regular savings account and eventually becomes dormant due to inactivity. Many of us forget to close such accounts after switching jobs or relocating.

But keeping unused bank accounts open can cost you. Even if public sector banks have relaxed maintaining minimum balance requirement charges, private banks often still impose penalties for not maintaining it. And, not to forget the fees like debit card maintenance, SMS alerts charged by the banks.

It's better to close unused savings bank accounts and save yourself from unnecessary charges and hassle.

What documents are required to close a savings bank account in 2025?

• Filled account closure form.

• A written request or letter of closing bank account.

• Valid ID proof (Aadhaar, PAN, etc.)

• Any unused cheque leaves and your debit card.

• Submit your passbook

The bank will verify and process your request, and the remaining balance will be refunded as per your chosen method ( cash, cheque or transfer to another account)

Yes, you can close your savings account from any branch. However, if the account is linked to a locker, you will need to visit the home branch to settle locker-related formalities before closure.

If you have moved to some other city, you can also transfer the account that you want to close to a branch where you are staying, and this can usually be done online.

Once the account is transferred, visit the bank to close the account. But, if the account is dormant, closure or reactivation can only be processed at the home branch (where the account was opened). Once active, the balance can be transferred to another account of your choice before closure.

As per the Reserve Bank of India (RBI) regulations, a savings / current account shall be treated as inoperative, if there are no 'customer induced transactions' in the account for a period of over two years.

• Banks must annually review accounts with no activity for over a year and contact customers to confirm reasons for inactivity. If the customer has relocated, they should be helped to transfer funds.

• If communication is undelivered, banks should try to reach out via introducers, employers, or contact details like phone or email—especially for NRI accounts.

• If the customer responds but still doesn’t operate the account, banks may keep it operative for one more year before marking it dormant.

• No fees for reactivating dormant accounts.

• Customer must not face inconvenience during reactivation.

• Interest must continue to be credited even if the account is inactive.

• Matured FDs left unclaimed will earn savings interest.

Do banks charge for account closure?

Yes, some banks, including SBI may charge a fee if you close your savings account within a certain period after opening it.

SBI Account Closure Charges (as per duration)

• Within 14 days of opening: Free

• Between 15 days and 1 year: ₹500 + GST

• After 1 year of account opening: Free

• Closure due to death of account holder: Free

Can savings account be closed online?

Yes, you can close digital accounts like the SBI Insta Savings Account through the YONO app. Similarly, Kotak 811 digital accounts can be closed via the Kotak Mahindra Bank app.