In the course of your financial life, you might open and close a bank account or switch banks. Bringing money back from a closed bank account is a tricky procedure with certain required steps. If you have a confusion about how to get money from a closed bank account account, read the article.
In this article, I have tried to put everything you need to know about money in a closed account. So, if you are facing such a situation, this is what you need to know at the time.
Undoubtedly, a bank account provides you with certain benefits. In addition to saving all your money in one place, it can earn you good interest on your hard-earned money. Some people also avail themselves of the option of you multiple bank accounts for numerous purposes. What if you get your account frozen or shut due to bankruptcy or what so ever reason?
You might be wondering why my bank closed my account with money in it. There arises confusion ayou canbout what will happen to the money you transfer to a closed account. While the news of your account getting frozen can be a shock for you, let’s see in this article what you can do after that to safeguard and retrieve the money present in the account. Would it be possible to recover your money from a closed account?
All these situations are uncertain and people should be aware of their rights and available solutions. Now, let’s get underway and understand how you can tackle the situation and recover your funds.
Reasons Why a Bank Closes Your Account
Before I can tell you how to get money from a closed bank account, it is important to know what happens when a bank closes your account. There can be a multitude of reasons for your money being stuck in an account. Some of them are explained below
When you do not use your account for a long time, your bank may decide to close your account. Generally, it takes several years of inactivity for a bank to put a plug on your account. For example, if you have not deposited money by writing a cheque or using your debit or credit card within 2-3 years your bank can close your account due to lack of regular activity.
The process of handling inactive accounts varies from bank to bank. Hence if you are wondering what happens when a bank closes your account, contact your bank and they will guide you on how to get money from a closed bank account.
The main reason why your money gets stuck in the account can be because your account is frozen. Bank decides to freeze your account if they suspect any irregularity with the account. If your account gets frozen that means you can not withdraw money from the account. However,
it is allowed to deposit funds into the frozen account. When a bank freezes your bank, it stops you from carrying out certain activities. Unless your account is functional, you can not carry out these activities.
Let’s proceed further on why your money gets stuck in the account. If you’re wondering why the bank closed my account with money in it and none of the above is relatable to you, it might be because of zero balance, too many transactions, bounced cheques, or overdraft. Your account can be closed if you have committed some crime after opening your account.
Also Read: Do Bank Transfers Happen On Weekends?
These are all the reasons why your money is stuck in the account. In any such case, it is important to contact your bank as soon as possible.
How To Get Money From a Closed Bank Account – A Complete Guide
Let us dig deep into the main question of the article so you know how can you tackle the problem or how to get money from a closed bank account. The following are the steps by which you can get your money back
If Your Account is Frozen, Ask The Bank To Unfreeze It.
As mentioned earlier, your account can be frozen for so many reasons. Most frequently, the bank freezes the account on a court order, due to a fraudulent transaction on the account or when the holder is unable to pay debts. If your account is frozen because you are suspected of illegal activity,
it will take a while to unfreeze your account. If your bank is frozen for some unknown reason or fraudulent transaction, you have to contact your bank and clear all their concerns. After that, your bank will unfreeze your account as soon as possible and you can withdraw money.
Extract Your Money From a Closed Account
Now when you know what happens when a bank closes your account, make sure you transfer all the funds from your closed account to another bank account that is active. People who do not withdraw money from closed accounts are at mistake as the bank can smack them with banking charges.
If you ever happen to transfer your money to the closed account, the transaction will not be accepted and all your money will be returned back to you. If the bank ever goes
Claim Your Unclaimed Deposits
If the account is dormant for a longer period of time, the bank will transfer your unclaimed deposits. The good news is, you can still get your money back. Contact your bank and they will provide you with the claim form. Fill the claim form, know your customer form and show the receipt.
Once the bank receives all proofs of your account and identity, they will get the unclaimed deposits credited to your account and you can withdraw them from there. Nevertheless, every bank has its own policy dealing with dormant accounts. Contact your bank and they will provide you with further assistance.
By now, I hope you are clear on how to get money from a closed account.
To summarize, you should make sure your account is active and fill in all the required KYC documents. You must keep a record of all of your transactions and withdraw money when it is required. Report if there any fraudulent transaction happens on your account without your knowledge. By following all these, you can easily enjoy all the banking benefits.
List of commonly asked questions about “How To Get Money From a Closed Bank Account”
Q1. Can I Lose My Money By Receiving My Salary in a Closed Account?
The transaction will not proceed and the amount will be credited back to the account through which the transaction is made i.e., your employer account. There are no chances of you losing your money.
Q2. Should I Report Any Fraudulent Transaction That Happened Through My Account?
You must report any such transaction as soon as possible. If you do not the bank will freeze your account.
Q3. Why Bank Close My Account With Money in It?
It can be because your account gets frozen, a dormant account, court orders, any fraudulent transaction occurring through your account. You should contact your bank immediately when after getting to know that your account is closed. The bank will assist you further on how can you get your money from a closed bank account.
Q4. Can I Get My Money Back From a Closed Account?
Yes, it is possible to get money back from a closed account. However, it depends on your bank rules and regulations and your involvement in any illegal transaction.