How To Switch Banks: A Step-By-Step Guide

Sometimes it is necessary to switch banks due to a life change. For example, you may need to move to a different city to move your money to a new bank. In other cases, using a new bank maybe just a matter of finding one that offers better low-interest rates on fees or savings.

Whatever the reason for opening a new bank account and leaving your old bank behind, there are some things you need to do to make the transition a smooth one. Switch banks are not difficult, however. It just means knowing which steps you need to follow, so check every single one from the list.

Read Also- What Is a Checking Account?

1. Pick the bank you want to switch to.

Choosing a bank may feel a bit like going to an ice cream shop with 50 different flavors—except you can’t sample banks. But you can do research to find one that’s right for you. Your first decision will be whether to go with a bank or a credit union. Not everyone can join a credit union, so that decision may be made for you.

Before you choose your new bank, make a list of the features you need. Here are a few essentials:

• Top-notch security
• Good interest rates for savings accounts
• Debit card
• Online and mobile banking
• Automatic bill pay
• Mobile deposit

If you have other non-negotiables in your list, but keep one thing in mind: a bank that you do not choose to gouge with fees and unnecessary charges. Banks have too many options for you to work together that will take your pocket every time you sneeze. It’s your money, so it is not their should be in your wallet.

2. Make a List of Your Automatic Payments and Deposits

You can manage your money easily by making automatic bill payments, direct deposits and recurring transfers. But, when changing banks, it is necessary that you properly make the switch to those transactions on your new accounts.

For example, you may face a problem if your paychecks are still being sent to your old account or you have processed an automatic bill payment to a closed account. So, as you plan for change banks, make a list of:

• Automatic deposits. This includes direct deposit of paychecks or business income, alimony or child support payments, government benefit payments, and recurring transfers from linked bank accounts.
• Automatic bill payments. This includes mortgage payments, utilities, credit cards, and student loans.
• Recurring subscription payments. This includes streaming services, gym memberships, and other transactions you pay automatically.

3. Open your new account

Since you have done your homework, opening a bank account of your choice is the easy part. Many customers do this without stepping foot in the bank. JD According to a recent banking survey by Power, nearly a third of new accounts are opened through a bank website or mobile application.

The step is the same whether you want to open an account online or in-person at a branch: you will provide information such as your social security number, date of birth, and current address. You may also be required to submit or show documents like a valid driver’s license or passport.

Generally, to open a new bank account, you’ll need to give the bank your:

• Name
• Date of birth
• Social Security number
• Email address
• Mailing address
• Phone number
• Driver’s license number or another I.D. number

4. Update your automatic payments.

We got it. This is the worst thing banks can do by making the switch. Paying bills was fast and easy with the old bank, and now you have to set your automatic payments again. But there is a big upside to updating your automatic payments. You can use this process to weed out magazines, such as magazines you have not read or gym memberships you have neglected, do not use membership and services outside. Or that bacon of the month club you need to ditch because you want to eat healthy (yes, that’s a real thing). Once you have decided which payment needs to be updated, here is the procedure to do so:

1. Go to the payment center for each specific bill.
2. Look for a tab or option that reads “change payment method” or something similar.
3. Remove the old bank account information and enter new account numbers.
4. Accept or confirm changes (the wording will vary, but you get the idea).
5. Go back to the payment method to make sure the new bank information shows on the account.
6. If you encounter any problems, contact each company’s customer service department.

Updating your payment could mean more cash in your shiny new bank account, so this review is definitely worth what you are actually spending your money on each month.

5. Close Your Old Bank Account

If you are satisfied that all of your automated transactions have transferred to your new account, the last step is closing your account in your old bank. Depending on the bank, you can do this in person, online or over the phone.

If closing a bank account, ask for verification that it is closed. You’ll want to hang on to this in case your old bank allows you to go through the ends that trigger a deposit or debit transaction above fees. Also ask if there are any accounts of closing fees. Some banks charge a fee for closing an account within a certain time frame after it has been opened.

If you want to Czech account any balance sheet, as well as destroying your debit card. When you make to get the final statement from your old bank, be sure to review it carefully that there are no lingering payments or deposits you need to transfer.

Read More- Open Online Bank Account: Guide to Open Banking Account