Money Is Quietly Draining From Old Bank Accounts—Ignoring Them Can Land You in Big Trouble: Here’s What You Should Do

Old Bank Account Risks:
Having multiple bank accounts has become common today—one for salary, another for online payments, and sometimes an old account that hasn’t been used for years. But these inactive accounts can silently create financial losses, cyber risks, and even legal hassles. Experts warn that if you no longer use such accounts, the smartest move is to close them immediately.

1. Hidden Charges: Balance Penalties Eating Up Your Money

The biggest problem begins with the Minimum Average Balance (MAB) requirement. Most banks ask customers to maintain a monthly balance, which can range from ₹500 to ₹15,000, depending on the city and account type.

For example:
Private banks like ICICI often require ₹15,000 MAB in metro cities. If you fail to maintain this, the bank may deduct a 6% penalty or a minimum of ₹500 every month.

Even zero-balance accounts can convert into regular accounts if there are no transactions for a long period, and penalties start without any notice.

2. Annual Fees That Keep Getting Deducted Silently

Even if you’re not using the account, banks continue charging:

• Debit card annual fee: ₹100–₹1,000

• SMS alert charges

• Miscellaneous maintenance fees

These small deductions pile up through the year and quietly drain whatever balance remains in the account.

3. Extra Hassle During ITR Filing

When filing income tax returns, you must report all active and dormant bank accounts. This means:

• Downloading statements

• Updating details

• Verifying unused accounts

The process becomes unnecessarily long and frustrating because of accounts you don’t even use anymore.

4. The Biggest Threat: Cyber Fraud and Identity Theft

Dormant accounts are a goldmine for fraudsters. Since these accounts aren’t monitored regularly, hackers exploit them for:

• Unauthorized withdrawals

• Identity misuse

• Illegal transactions

As per RBI rules, if an account stays inactive for two years, it is marked ‘dormant’, and services get restricted. Dormant accounts also impact your credit profile negatively.

Several fraud cases have surfaced where hackers targeted such abandoned accounts for illicit activities.

How to Safely Close Old Bank Accounts: Step-by-Step

✔ Check the remaining balance
Withdraw or transfer the amount to your primary account.

✔ Delink all services

• Auto-debit

• UPI ID

• Credit card payments

• EMI mandates

✔ Visit the home branch or apply online
Fill out the closure form and submit your ID proof.

✔ Collect account closure acknowledgment
This protects you from future disputes.

Why Closing Unused Accounts Strengthens Financial Security

• Saves you from penalties and hidden charges

• Eliminates cyber fraud risks

• Simplifies tax filing

• Keeps your financial profile clean

• Helps you manage money efficiently

If an account hasn’t been used for months—or years—it’s better to shut it down instead of letting it drain money silently.