From time to time, you may need to switch your checking from one bank to another. This is common when you’re looking for lower fees, moving to a different city, or simply aren’t happy with the current banking services that you have. Switching from one bank to another is fairly simple to do with the procedure below.
Decide on a Bank and Set Up a New Account
Today, you have several choices when establishing a new bank account. According to the experts at SoFi, “More people are moving away from traditional checking and savings accounts, in favor of “deposit accounts,” which let you keep access to your cash while simultaneously earning a higher interest rate.”
After comparing and contrasting your many online and offline options, it’s necessary to decide on a bank. Take a few moments and set up a new account with that bank. Most banks will allow you to do this online by uploading your photo identification and other important documents. However, some local credit unions may require you to establish a new account in person.
Make a Note of Your Existing Automatic Payments and Direct Deposits
Next, you’ll want to look over your previous bank statements. Make a list of all of your existing automatic payments and your direct deposits. It’s vital to get this information before closing down your existing bank account. You’ll want to keep this list so that you can change your payment details to your new bank account for your automatic payments and contact your direct deposit companies to give them your new bank account data.
Move Your Money
The next step in our guide to how to switch banks is to move your money from the existing bank account to your new one. You can do this in a couple of different ways. You can initiate an online transfer through your online account portals. These transfers can take anywhere from a couple of days to a couple of weeks, depending on the specific banks that you use. Your second option is to write a check from your old bank account with your total account balance and deposit it into your new bank account. This is typically quicker to do, especially when your new bank has mobile deposit capabilities.
Close Your Old Bank Account
Once you get your money transferred to your new bank account and you’ve updated all of your automatic payments and direct deposits, you can shut down your old bank account. You can typically do this via the bank’s online portal or in person at the bank office. Be sure to ask for written communication that your bank account has been successfully terminated. It’s also a good idea to destroy your debit card and any remaining checks from your old bank account.
Switching bank accounts tends to sound more difficult than it actually is. By following the step-by-step guide that we went over above, you’ll be able to switch banks without a problem.
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