How to Switch Banks

Switching banks is usually not one of the things we like to do, but sometimes our circumstances change and our banking must change with us.

Whether it's a household move or because you found a bank with lower fees and better service, you want to take caution when going through the procedure for switching banks.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Appropriate forms of identification
• Proper opening deposit
• List of all accounts attached to the old account

1. At this point, I'm assuming you've selected the new bank. So, with that in mind, take the appropriate forms of identification, anyone else who is going to be on the account with you, and the opening deposit to the new bank.

2. You'll be seeing some version of a "relationship" or "personal" banker. Their job is to make sure you get set up with the correct banking products. (Note: this is probably the person you're going to see at your old bank when you go and close the account.)
   
   Tell the banker you kind of account you want to open and then you can proceed with the paperwork.
   
   You can do this online with some banks, but then you still have to show up in person, so it's easier to just go from the beginning.

3. While with the banker, make sure you set up any savings accounts you want, get your questions answered, and order your checks. Also check to see when your account will be fully active.
   
   You'll also need the appropriate information to change any direct deposit information (bank's routing/ABA number and your checking account number).

4. Once your new account is open, suspend all automatic payments that are coming out of your old account. Do not close your old account until all checks and debit card payments have been made.
   
   Once you have suspended them from the old account, simply give your new banking information to the institutions you have on automatic payment. If it is cost efficient, you may want to use your bank's web bill pay service. If not, many accounts can be paid through My Check Free (see link in resource section).

5. Once you are sure all charges and bills have been paid from your old account, go in person to the bank and close the account withdrawing any money left in your accounts.

6. After your in person visit to the old bank, send them a certified letter restating that you have closed your account.

7. When you receive your new ATM/debit card and checks from your new bank, destroy the card and checks from your old banks. Make sure you keep the statements, however.
   
   And that's it!

Tips & Warnings

• Do the steps in order so that you avoid bills not being paid.
• Become familiar with what ATMs you can use with your new bank.
• Put your new account information in a safe place for access at a later time.
• Do not close your old bank account until you are completely set up with your new account. This will help smooth any transition issues.

Resources

• My Check Free
• Personal Finance Success