How to Avoid Having Your Digital Bank Account Closed

In light of recent posts regarding sudden digital bank account closures doing rounds on the popular social news aggregation site Reddit, having awareness on how to keep your account (and your money) safe has now suddenly become a hot discussion, with multiple people asking how to avoid being the next one to have their accounts closed without warning.

Here are some tips to keep your digital bank accounts free from any sudden closures or withholding of funds:

Don’t suddenly go over the threshold for covered or suspicious transactions
In the very delicate world of financial management, it’s better safe than sorry, especially when dealing with thresholds for covered or suspicious transactions.

Every entity, in alignment with the Anti-Money Laundering Act, has a predefined threshold that, once crossed, raises a flag of suspicion.

For example, if you suddenly deposit a substantial amount of money that vastly contradicts your declared income, it sends out a warning signal. This conspicuous anomaly prompts financial institutions to initiate investigations to ascertain the legitimacy of the funds flowing into your account.

Diversify your assets by having multiple bank accounts
Diversification isn’t solely for investment portfolios; it extends to your bank accounts as well.

Consider this scenario: You have a substantial flow income that you only deposit within a single bank. Every transaction is smooth. Things get even smoother the more you deposit as more money is being placed in the coffers of the bank, and you’re gradually experiencing the feeling of being a VIP client of a bank.

Then due to a series of unfortunate events, your bank collapses. All your dreams, savings, aspirations, and generational wealth are gone in a matter of days.

In the unfortunate event of a bank collapse, the protection of your deposits relies on the state-run Philippine Deposit Insurance Corporation (PDIC), which insures only up to P500,000 per depositor.

To safeguard your financial interests in case of unforeseen calamities, diversifying your assets across multiple banks is a prudent strategy. By distributing your funds, you mitigate the risk of losing significant sums if one bank faces financial instability.

These strategies will help you maintain good and responsible standing as a depositor, which will help you not have sudden account closures or withholding of funds.

When handling financial transactions, staying within the boundaries of thresholds and avoiding sudden anomalies can save you from unnecessary scrutiny. Moreover, spreading your wealth across different banks acts as a safety net against the uncertainties of the financial landscape. In a world where vigilance is crucial, these practices not only protect your assets but also contribute to your peace of mind. (GFB)