Do you close old/unused bank accounts/credit cards/etc?

Windows7forever on 26/04/2017 - 05:16

Just within the last week I closed my unused Macquarie Bank accounts (opened late last year due to $50 end-customer beta testing promo) and 28 degrees credit card (thought I might use it for online purchases but never used in the 3 years I've had it).

Most accounts are opened to take advantage of promotional offers/cash backs and then subsequently closed when they offer no ongoing utility.

I prefer to consolidate my financial affairs and not have too many multiple accounts sitting unused and 'worrying'about them, even if they are completely "fee free". e.g. imposition of admin fees & charges later on, changes to T&Cs, paypass fraud from a lost/stolen card.

If/When a better deal pops up I can always quickly re-open the accounts to take advantage of them and often get those exclusive "offer available to new customers only" benefits.

What is your stance on this?

Poll Options

  • 31
    Yes, always when not used anymore
  • 18
    Sometimes, it depends
  • 4
    No, always leave them open
Financial

Comments

  • [Deactivated] on 26/04/2017 - 08:08
    +1

    open cc account, spend minimum, get ff points, pay off, close account, repeat with different CC until lots of points accrued.
    open bank acct, transfer minimum, spend minimum, get cashback offer, transfer money back, close account.

  • mskeggs on 26/04/2017 - 08:08
    +1

    I generally don't bother, and have found it sometimes hard to close accounts. ANZ sent me an ATM card last year, even though I haven't banked with them for more than a decade and did officially close the account when I left, but apparently not forcefully enough.
    I also opened a Citibank account last year. It resulted in a letter being sent to my parent's house advising me that they had approved my application and change of address. I haven't lived there for more than 20 years, but apparently Citi took over AGC or somebody I had a line of credit with in the 1990s, and feels the need to keep historical me updated.

    It makes me wonder if letters are going to other old addresses from Myer regarding the card I opened with them in 1993 and haven't used since, or from Vodafone regarding the SIM I had in 1998, where I have moved on, but the computer system maybe hasn't.

    • Windows7forever on 26/04/2017 - 08:19

      Yes, they can and will stalk you many years later because your contact details are kept in a database.
      You'd be surprised, when I was renting I used to get mail from several of the old tenants who forgot to update their old address or provide forwarding address. Tenants who haven't lived in the building for years, I'd imagine. Needless to say it just went straight into the bin.

    • Mad Max on 26/04/2017 - 17:49
      +2

      It is very bad when the letters sent to very old addresses contain personal details. Some banks send preapproved and partially prefilled (name, surname,dob) credit cards applications.

      • Windows7forever on 26/04/2017 - 18:34
        +1

        Living in a unit block you'd have to be very vigilant about mail theft too. mail theft = identity theft = fraud.

  • Findo on 26/04/2017 - 08:10
    +2

    Yes, so I can reapply for offers again eg ANZ $100 gift card offer. I won't close my Macquarie bank platinum one though, that one has ongoing benefits.

    • Windows7forever on 26/04/2017 - 08:16

      I had the Macq platinum. What ongoing benefits?
      I suppose it is worth it if you do your banking with them.
      I prefer the simplicity of ING so I'll stick with them.

      • Findo on 26/04/2017 - 08:56
        +1

        The stolen wallet thing is good, although I've never had anything stolen from me before. The no international transaction fee benefit is also good, I don't hold any credit cards with 0% transaction fees (yet). Once the intro saving rate expires I'll keep minimal funds in my account for the odd international purchase - although with the GST-free threshold being scrapped soon might make it less useful.

  • John Kimble on 26/04/2017 - 08:37

    One probably should for at least one reason: it reduces that particular dormant account from being hacked and potentially used. For a bank account the impact is less (unless it can be overdrawn), but for a credit card it would be annoying to have to go through the process of sorting it all out with the bank and getting your credit history fixed (if it got to debt collection stage for example).

    The worst scenario I guess would be complete ID takeover.

    Most of the time banks close dormant accounts or at least put some sort of hold on them though (if they are smart).

    • Windows7forever on 26/04/2017 - 18:32

      That would be a pretty scary prospect. My 28 degrees mastercard with paypass technology was sitting unused in my spare wallet at home. With a $3500 credit limit, any scumbag that steals the card could cause some serious damage. PayPass is one of the biggest causes of low level fraud offences in Australia today. I'd welcome a back to basics "pin to pay" EFTPOS card over PayPass any day!

      • ascorbic on 27/04/2017 - 20:28
        +1

        Request your bank to disable paypass for your card (or do it in your bank's app/internet banking if they support it). Personally, I'd​ hate the hassle of insert and pin.

        • Windows7forever on 28/04/2017 - 03:45

          Thanks. I didn't know this was possible. I still prefer using paypass with my main debit card.

        • John Kimble on 28/04/2017 - 09:07

          @wolfenator87: I'm not aware of many institutions that can or will do this?

          Apparently you can sever/hole punch the contactless chip if you know where it is on the card…although I am not sure if this would impact the EMV chip function too…

        • ascorbic on 28/04/2017 - 12:26

          @John Kimble: Nab has a switch in the app to disable contactless so I'm sure the other big banks could do it manually if you asked

        • DogGunn on 28/04/2017 - 15:29

          @John Kimble:
          The chip in the card is the contactless chip. The EMV chip does the contactless job too.

        • John Kimble on 28/04/2017 - 15:41

          @DogGunn: I stand corrected. Seems like all you need to do is cut the antennae that are in the card?

        • DogGunn on 28/04/2017 - 18:49

          @John Kimble: Good luck with that! haha
          The antennas run throughout the whole card.

          See here: http://www.nfc-ready.eu/images/stories/news11/72a1af475e11_1…

        • John Kimble on 28/04/2017 - 19:21

          @DogGunn: from googling you don't need to cut them out, just sever/break the loop.

  • Skramit on 26/04/2017 - 08:50
    +2

    The accounts I don't want my wife to know about I keep open. The rest I close if not used.

  • cloudy on 26/04/2017 - 10:11
    +1

    Only when they charge a annual fee, or else I'm a bit lazy and also I feel like it leaves the door open if they suddenly want to entice me with a juicy offer.

    • Windows7forever on 26/04/2017 - 18:29

      "juicy offers" are usually juicier for new customers only. Hence why it might be a better idea to close the account/s and then re-open when benefit arises. There's no such thing as loyalty anymore. Customer retention , for the banks anyway, is a joke as far as I'm concerned.

      • cloudy on 26/04/2017 - 19:45

        i can close anytime I'm pretty sure.

  • altomic on 27/04/2017 - 08:45

    Hi, I'm Altomic and it's been 3 years since I last closed a bank account.

  • myusername on 03/05/2017 - 08:47

    had a westpac account for about 15 years that i'd nearly forgotten about, the last i remember i had left $50 to see what it would turn into. went into the branch one day to check and they advised i was in arrears by like $500. i asked how could this be? they said because i didn't leave enough in there. was absolutely amazed. when i asked them what this meant they said i owed them the money. told them politely where this account could be placed in their physical anatomy and demanded they account be closed. they bought a manger into the conversation who advised i needed to pay the money so they could close the account. he too was told where this account could be placed, eventually after a heated exchange at the front counter they closed the account.
    what ever happened to putting 50 bucks somewhere and just letting it grow?

    • Windows7forever on 03/05/2017 - 10:51
      +1

      If they later impose admin fees that could quickly put the account into debt. Best not to 'sleep' on these things in case this very thing happens. So they wiped the $500 debt clean or do you still have debt collectors chasing you?

      • myusername on 03/05/2017 - 11:02
        +1

        this happened just over 15 years ago, back then i didnt have much tact, diplomacy or even patience. i lost my cool bigtime after that they closed the account and i was escorted from the premises.

        • Windows7forever on 04/05/2017 - 06:35
          +1

          Sometimes being a hot head and making lots of noise will make people take notice.

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