Most investors typically route their investments through a particular savings bank account. They submit the bank details to the fund house when they start investing in mutual fund schemes. The details are used to debit the investments and also to credit the redemption proceeds. But what happens when your close the bank account?
If you have ongoing investments that are linked to the bank account, you are going to face trouble. For example, your Systematic Investment Plan (SIP) instalment would not go through because there is no money in the bank account that was linked to it.
Similarly, you won’t get dividend money in your bank account if you have opted for the dividend option. However, you can save the situation by taking a simple step: just inform the fund house about the change in your bank account details.
All you need to do is update your bank account details with the fund house. For this you need to fill a form available with the fund house or on their website. Fill the new bank account details in the form and submit it to the fund house.
You will have to fill up details such as the name of the bank, the branch and the IFSC code. You also need to provide an attested copy of the bank statement to the AMC as proof. The fund house generally takes 8-10 days to review and update your new bank account details. Once it is done, your investments will be redirected to the new account.
If you are registered on the online portal of the fund house and you have the user name and password, you can also request for the change in bank account details online.
You can also add multiple bank accounts in the form (upto five) and choose one of them as the default account. If you have only one bank account, that automatically becomes the default account for your investments.