Common Principles for Bank Account Switching
Switching banks is a tedious process. Details about bill payments, direct deposits, and check orders need to be taken care of without a hitch, and small mistakes can create large headaches. The process for switching bank accounts is best done systematically and with the help of a bank employee who can help you troubleshoot issues as they come up.
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Grace Period
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To completely switch from one bank to another can take weeks or even months. Some employers take a long time to process direct deposit requests, and you never know, you might forget to switch a bill. To protect against costly mistakes, make sure to keep your old bank account open while you're switching everything over. Even if you're not using it, having it around and keeping some money in it will give you a safety cushion in case something you forget about is transacted through the account.
Bills
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Perhaps the biggest task involved in switching bank accounts is switching all your payments from one account to another. This process should be given a month to complete and can be done with each creditor individually or through your bank. Bill payments through your bank can be organized through their online bill payment service. Online bill payment allows customers to manage their bills on the bank website, and requires your account number and payment address to set up.
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Other Products
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Many banks offer additional rewards to customers who do their primary banking with them. For example, Chase Bank offers customers better interest rates on savings accounts and rewards on their credit cards with the Chase Exclusives program. For this reason, it's a good idea to consider all the products you use with your old bank and if it makes sense to switch. These products can include savings accounts, credit cards, or other loans.
Consultation
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Most banks have branch employees who can assist customers with switching a bank account. Some provide forms for the account switching process, and help with time consuming administrative details. Bank officials are also a good source of information about different products and their costs. Bank employees are legally required to explain disclosures and answer questions about fees and interest rates in an unbiased way. Talking to one will help ensure you're making the best decision.
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References
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