How to open and close a current account

Have you decided to open a current account? Or to close one? There are a few things you have to know before you do so.

Opening a current account

Current accounts offered by banks vary in terms of costs and features. Before opening your account, choose the option that is most convenient and best suits your needs, just as you would for any other purchase. Here are three moves to succeed:

1. identify your needs

   What will you use the account for? How many withdrawals and transfers do you expect to make each month? Would you prefer to pay a small amount for each individual transaction (consumer account) or a bit more for a fixed number of transactions (packaged current account)? Do you want a traditional account or an online one? The latter may be cheaper but requires you to manage everything yourself through the home banking service?

   Take some time to answer these questions, it will help you choose the right offer for both your needs and your wallet.

2. consider alternative product

   There are other tools for making and receiving payments besides a bank current account: Bancoposta current account, basic bank account, prepaid cards, cards with IBAN, and payment accounts held with payment institutions (PIs) or electronic money institutions (EMIs).

   These alternatives may not provide all the services of a current account, but they can be more convenient and may still meet your needs.

3. compare offers

   It's now time to compare the features and costs of various options. Read the documents that contain this information and use online comparison tools. The relevant documents are:

• the Information Sheet (Foglio informativo), which describes the features and costs of the current account and all associated services. It can be found in bank branches and on the bank website;
• the Fee Information Document, which shows the costs of the main services and the Comprehensive Cost Indicator (ICC). Like the Information Sheet, it is available at the bank branches and online;
• the Summary Document, which contains all the information about the account services and their costs. It is attached to the contract, usually as the cover page. If the offer for a transaction or service cannot be tailored to a specific customer, the Information Sheet and the Summary Document may look the same. If instead you have agreed with the intermediary on better conditions than the standard ones, you must get the document before signing the contract.

Have you made your choice? Then it's time to open your account. You will need to provide the bank with all the information necessary to check your identity and the purpose of the account. You will also need to specify how you would like to receive communications about your account: by email or post. Note that email communication is usually free – at least for legally required notices – while postal communication is normally charged.

Once all of that is done, the final step is signing. Don't rush. Read the contract carefully before signing, and remember that the contract must not contain any terms that differ from or are less favourable than those stated in the Information Sheet or Summary Document, if applicable. After signing, keep a copy of the contract – signed by both you and the bank – along with the Information Sheet and/or Summary Document for future reference.

Closing a current account

You can close your current account at any time. The terms and any applicable costs are stated in the Information Sheet or in the Summary Document attached to the contract. Remember that you cannot close an account if the available balance is negative – in other words, if the account is overdrawn.

In most cases, accounts can be closed free of charge and without penalty. If there are any fees, ensure that your account balance can cover them.

The balance and any associated payment services, like salary direct crediting or direct debits for bills, can be switched to another account in your name. If the new account is with a different bank, you can use the current account switch procedure.

Once you have closed the current account read the final statement that the bank must give you, which is the document that summarizes the most important data from your account, including the balance at the moment the account is closed.

If something goes wrong

If something is going wrong with opening or closing your account, you can file a complaint with your bank. If the bank doesn't reply or it reply is unsatisfactory, you can register a complaint with the Banking and Financial Ombudsman (ABF) or take legal action in the civil courts.

In any case, you can submit a complaint with the Bank of Italy to report conduct that you deem to be irregular or wrong, free of charge and with no need for legal assistance.