How To Switch Banks With Step By Step Guide

Switching banks typically refers to the process of moving your financial accounts and services such as checking, savings and credit cards from one bank to another. This is usually done to find a better bank that offers higher interest rates, lower fees or better customer service. The process involves opening a new account at the new bank, transferring funds and automatic payments and closing the old account. It’s important to research and compare banks before making the switch to ensure that the new bank meets your financial needs. Here are 6 necessary steps you need to take if you are thinking about switching to other bank.

1. Finding Your New Bank

When looking for a bank to switch it’s important to consider several factors. First, think about what you need from a bank such as low fees, high interest rates, convenient locations or online banking services. Next, research potential banks by reading reviews, comparing interest rates and fees and reviewing the bank’s customer service reputation. You may also want to check if the new bank offers services that your old bank did not provide. Once you have found a suitable bank, open an account and begin the process of transferring your funds and automatic payments. Remember to carefully review the new bank’s terms and conditions to avoid any surprises in the future.

2. Prepare A List For Your Automatic Payments & Deposits

When switching banks, it’s important to make a list of all your automatic payments and deposits so you can transfer them to your new account. Here are some common types of automatic payments and deposits to include on your list:

Automatic payments:

Insurance premiums.
Charitable donations.
Gym membership fees.
Internet and phone bills.
Cable or satellite TV bills.
Car loan or lease payments.
Rent or mortgage payments.
Utility bills (gas, water, electricity)
Subscription services (Netflix, Spotify, etc.).

Automatic deposits:

Rent payments from tenants if applicable.
Investment dividends or interest payments.
Social Security or other government benefits.
Paycheck or direct deposit from your employer.

Be sure to review your bank statements for the past several months to ensure that you don’t miss any recurring payments or deposits. Once you have identified all of your automatic transactions then contact each provider to update your payment information with your new bank account details.

3. Open A New Bank Account

To open a new bank account when switching banks, follow these general steps:

1. Research and compare banks to find one that best suits your needs.

2. Gather the necessary documents to open a new account such as a government issued ID and proof of address.

3. Fill out the application for the new account either online or in person at a branch.

4. Make an initial deposit into your new account either electronically or in person.

5. Once your account is open, request a debit card and set up online banking access.

6. Verify that your automatic payments and deposits have been successfully transferred to your new account.

7. Close your old account to avoid any unnecessary fees.

Remember to carefully review the terms and conditions of your new account to ensure that you understand any fees, interest rates and other important details. Also make sure to keep track of your new account number and routing number for future transactions.

4. Enroll In Online & Mobile Banking

Enrolling in online and mobile banking is an important step when switching banks. Here’s how to enroll:

1. Contact your new bank to find out how to enroll in online and mobile banking. Most banks offer a way to enroll online, by phone or in person at a branch

2. Download the mobile app on your tablet or smartphone.

3. Follow the bank’s instructions to create a username and password for online banking.

4. Log in to your online banking account and link your accounts such as checking, savings and credit cards.

5. Customize your account preferences such as setting up account alerts, managing your profile information and setting up bill payments.

6. Test your online and mobile banking access by making a small transaction such as checking your balance or transferring funds.

By enrolling in online and mobile banking, you can access your accounts 24/7, track your transactions, pay bills and manage your money from your computer or mobile device. Some banks may offer additional features such as mobile deposit which allows you to deposit checks using your mobile device.

5. Update Your Automatic Payments & Deposits

Updating your automatic payments and deposits is a crucial step when switching banks. Here’s how to do it:

1. Make a list of all of your automatic payments and deposits including the company name, account number and payment amount.

2. Contact each company to provide them with your new bank account information. This can usually be done online, by phone or by filling out a form.

3. Verify that the company has updated your payment information and that your automatic payments and deposits will be processed correctly.

4. Keep track of your old bank account for at least a few weeks to ensure that all payments and deposits have been successfully transferred to your new account.

5. Once you have confirmed that all automatic payments and deposits are being processed correctly, you can close your old bank account.

It’s important to update your automatic payments and deposits as soon as possible to avoid any missed payments or overdraft fees. Make sure to keep a record of your updates and double check your bank statements to ensure that all payments and deposits are being processed correctly.

6. Close Your Old Bank Account

Closing your old bank account is an important final step when switching banks. Here’s how to do it:

1. Make sure that all automatic payments and deposits have been successfully transferred to your new account.

2. Withdraw any remaining funds from your old account. You can do this by transferring the money to your new account or by withdrawing cash at a branch.

3. Contact your old bank to request that your account be closed. This can usually be done online, by phone or in person at a branch.

4. Follow the bank’s instructions to close the account which may include filling out a form or providing a written request.

5. Verify that the account has been closed and that there are no remaining fees or charges associated with the account.

6. Shred any old checks or debit cards associated with the closed account.

It’s important to keep your old account open until all automatic payments and deposits have been successfully transferred to your new account. Once you have confirmed that all transactions have been processed correctly, you can proceed with closing the old account. Make sure to keep a record of your account closure request and any other relevant documentation in case you need to reference it in the future.

Conclusion

Switching banks can be a daunting process but by following these steps, you can ensure a smooth transition. First, research and compare different banks to find one that best suits your needs. Then, open a new account, enroll in online and mobile banking and update your automatic payments and deposits to your new account. Finally, once you have verified that all transactions have been successfully transferred close your old account. By taking the time to carefully manage this process, you can avoid any missed payments or overdraft fees and enjoy the benefits of a new bank that better meets your financial needs.