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#223682 - 08/04/04 08:32 PM Can a service fee close a savings account?
Gray Mare Offline
Junior Member
Joined: Jun 2002
Posts: 39
I was told that a service fee can not close a savings account. Here's my example: Someone has a savings account with $.25 in it. If we charge $2.00 if the balance drops below $100.00, can we actually close this account out? We currently don't charge if there is not at least $2.00 in the account, so we don't make the account have a deficit balance. We do the same thing with dormant accounts. Can we charge these accounts still when the balances get below the fee amount?
I don't know all the answers.... but I know where to get them!

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#223683 - 08/04/04 10:35 PM Re: Can a service fee close a savings account?
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 80,325
Galveston, TX
Sure - why not, the customer owes you the money under the depositor's agreement that they signed. However, if the account is dormant - you need to refer to State for guidance on allowable charges.
The opinions expressed here should not be construed to be those of my employer:

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#223684 - 08/04/04 11:38 PM Re: Can a service fee close a savings account?
Banker Boy Offline
Banker Boy
Joined: Oct 2003
Posts: 69
If the balance is less than the amount of the service fee, we charge the service fee in the amount of the remaining balance and close the account.

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#223685 - 08/05/04 05:22 PM Re: Can a service fee close a savings account?
Strategery Offline
100 Club
Joined: Jan 2004
Posts: 125
Snow Country
However, you may still need to look to state law for closing account -- some require adequate notice so you can't just service charge and close without consent from the customer. Non-response to a notice or letter of intent to close will usually constitute implied consent if so stated in notice or letter.

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