Guidance on Closing a Bank Account and Selling Mutual Fund Units
Managing financial transactions, especially when dealing with mutual funds, involves several important steps. If you find yourself in a situation where you need to close a bank account from which you have purchased mutual funds, follow these detailed steps to ensure a smooth process.
1. Understanding the Process
Closing a bank account from which you've purchased mutual funds involves two primary steps: changing the bank details for each mutual fund portfolio and subsequently closing the bank account. This guide aims to provide comprehensive instructions to help you through the process with ease.
2. Changing the Bank with Each Mutual Fund Portfolio
The first step is to change the bank details associated with each mutual fund portfolio. This can be done through various methods, such as filling out a Bank Change Mandate form, online banking platforms, or visiting the bank branch.
Key Steps:
Log in to the online banking platform of your current bank. Locate the section for fund management or investment accounts. Submit a Bank Change Mandate form. Follow the instructions to complete the form. Ensure you have the necessary identification and account details handy. Submit the form to the bank for processing.Once the bank change is approved, you can proceed to the next step of closing your bank account.
3. Closing Your Bank Account
After successfully changing the bank details for each mutual fund portfolio, you can proceed to close your bank account. The process for closing a bank account may vary based on the bank, but here is a general guideline to follow.
Key Steps:
Contact your bank and initiate the account closure process. Request for the required forms to close the account. Withdraw any remaining funds that might be in the account. Submit all required documentation, such as identification and confirmation of the bank change. Wait for the bank to process the closure request and provide a confirmation. Collect any remaining funds and retrieve any documents, including passbooks or certificates.4. Selling Mutual Fund Units
While you can close your bank account after changing the mandates, it is often recommended to sell your mutual fund units to ensure financial security and liquidity. Here are the steps to sell mutual fund units:
Key Steps: Log in to your online investment platform or mutual fund account. Navigate to the section for selling mutual fund units. Identify the mutual fund scheme you wish to sell units from. Choose the number of units you want to sell. Review the details and confirm the sale. Once the sale is confirmed, the amount will be credited to your bank account within a few days.
It is important to monitor your bank account for the credited amount and to double-check for any leftover units to ensure complete closure of your investment.
5. Confirming the Sale and Closing Your Investment
After selling your mutual fund units, it is crucial to verify the transaction. Here are some final checks to ensure your mutual fund investment is fully resolved:
Key Steps:
Check your investment account for any remaining units. Confirm that all units have been sold and no units remain in your portfolio. Monitor your bank account for the credited amount from the sale of mutual fund units. Review the bank closure process to ensure all steps have been completed and no outstanding documents need attention.By following these detailed steps, you can ensure a smooth process of closing your bank account and successfully selling your mutual fund units. Always stay in touch with your financial advisor or bank for any updates or necessary guidance throughout the process.