How To Switch Bank Accounts? Switching bank accounts is not as complicated as some banks make it. It is easier to move banks when you break down this process into smaller, simpler tasks.
Switching banks is not as easy as switching on a light, but it is also not rocket science. The biggest obstacle to completing all tasks is time.
Follow the steps and you’ll be able to Switch Bank Accounts with Simple Steps.
How To Switch Bank Accounts with Easy Steps
1. Find or Select a new Bank Account
Open a new account before closing the old one. This way, your automated transactions can continue smoothly without any problem between them.
If you have not already chosen a new bank, do some research on the requirements, perks, and fees of various banks. whether it’s a checking, savings, or money market account. What are Money Market Accounts And How it Works?
Go to the personally at the bank, rather than opening an account over the phone (unless your bank is online). You are more likely to get answers to all your questions.
Before you select your new bank, make a list of the features you need. Here are a few of them:
- Top-notch security
- Good interest rates for savings accounts
- Debit card
- Online and mobile banking
- Automatic bill pay
- Mobile deposit
2. Open Your New Bank Account
Now you are ready to open your new bank account. Some banks will allow you to do everything online, but others require a visit to a real or physically at the bank.
To open New Bank Account you will need to provide a few documents and details such as:
- ID (like a driver’s license, voting Card, PAN Details)
- Birthdate
- Proof of your mailing address and physical address.
- Social Security Number
- Employer name and contact information (if setting up automatic deposits)
Account opening is a small step that you can usually complete online in 10 minutes or less. Make an initial deposit to your new account.
Some banks require a minimum amount to open or maintain an account. And some require larger balances for extra features like waiving fees for a safety deposit box.
After that, set up an electronic link between the new account and the one you intend to close. This is the easiest and cheapest way to transfer money.
3. Update your Automatic payments
This is the worst part of switching banks. Paying bills with the old bank was fast and easy, and now you have to reset your automatic payments.
Make a list of all your payments, which are automatically debited from your account. Then find out which ones are set up through the company you are paying, and which are set up through the bill payment system at your old bank.
Be sure to make the appropriate online payment through your new bank, and change account information for payments automatically debited by companies.
Once you’ve decided which payments you need to update, here’s the simple process to do that:
- Go to the payment center for each specific bill.
- Look for an option that reads “change payment method” or something similar.
- Remove the old bank account information and enter new account numbers.
- Accept or confirm changes.
- After that, Go back to the payment method to make sure the new bank information shows on the account.
- If you encounter any problems, contact each company’s customer service department.
4. Start Using Your New Account
If you are going to write a check or use online bill payment, then start writing the check with a new account so that you get into the habit of using it.
Fund those payments by transferring money from your old account.
5. Link the New Account With Other Active Accounts
Use your new bank’s app or website to link your new check or savings account to all your other active accounts.
This step allows you to do a one-time or recurring transfer from one time to another so that you can easily meet your financial goals.
6. Close your old bank account
Once you update all the online transactions and your new account is running smoothly, and all expected debits and credits in the old account have been cleared, withdraw the remaining money.
First, read all the procedures of your old bank for account closure. Some banks will let you close an account by mail, online, or phone.
Each bank is different, so you may need to visit a physical branch. Or you can call the customer service number instead or email them.
Give formal instructions to the bank, so that they stop paying interest, making statements, and collecting fees, and tell them where to send any remaining money.
Once your account is closed, destroy the debit card and check associated with that account. But keep your bank statement for your records! You may need them later for taxes.
Once the bank confirmed that your account was closed, you successfully switched banks.
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