Citigroup Inc. or “Citibank” closed my account even though there was still money in it. While this may seem unfair, there are actually a few reasons why Citibank may have decided to close my account. In this blog post, I’ll explore the three most likely reasons for why Citibank closed my account and offer some advice for what to do if you find yourself in a similar situation.
1. I hadn’t used my account in a while.
The first and most likely reason why Citibank closed my account is that I hadn’t used it in a while. This is called dormancy, and it’s something that banks are increasingly cracking down on because it costs them money to maintain inactive accounts. If you have an account that you haven’t used in a while, your best bet is to either close it yourself or make a small transaction (like a withdrawal or transfer) at least once every few months to keep it active.
2. I had too much money in my account.
The second possibility is that I had too much money in my account. While this may sound like a good problem to have, it can actually be costly for banks because they have to pay to insure deposits over a certain amount. If you find yourself with more money than you know what to do with, it might be worth transferring some of it into a high-yield savings account or investing it in order to avoid having your account closed due to excess funds.
3. I had negative activity on my account.
The third and final possibility is that I had negative activity on my account, such as bounced checks or overdue payments. Negative activity can be costly for banks because it can lead to insufficient funds fees and other penalties. If you have negative activity on your account, your best bet is to bring your balance back into the black as soon as possible in order to avoid having your account closed due to non-sufficient funds.
While it may seem unfair, there are actually a few reasons why Citibank may have decided to close my account even though there was still money in it. If you find yourself in a similar situation, the best thing you can do is try to figure out which of the three reasons above applies to you and take corrective action accordingly. Have you ever had an experience with a bank closing your account unexpectedly? Let me know about it in the comments!