If you’re not happy with your current bank, it may be time to switch to a different one. But before diving into the switch, take a look at the steps to follow for the process to go smoothly.
Open an Account at a New Bank
If you’re thinking about switching banks, don’t simply close the old one. You need to open a new account at your bank of choice first, and this means filling out a form with your contact information and driver’s license number. You can typically do this online or in person at your local bank, depending on your preferences. Once you do this, you’ll get your new bank account number, and you can make your first deposit.
Switch Automatic Payments and Deposits to the New Bank
Once you have a new account, make a list of automatic payments that are set up through your old account so you can cancel them. If you pay utilities, credit cards, gym, etc. through your old bank, redirect those payments to come out of your new account. You need to do the same with direct deposits going into your old account, such as your paycheck—though you’ll need to contact your employer to change this.
Get Familiar With Your New Account
As you migrate payments and deposits from your old account to the new one, you should get acquainted with all the features of the new bank. Setting up automatic payments may take some time as you learn how to navigate the account, but you’ll get used to it. This is also the time to link your checking and savings accounts together so you can quickly access your money when necessary.
Close the Old Account
Once you have money in your new account, the time has come to close the old one. The process varies depending on the bank, so contact the banking institution to find out how to do it. You might have to go in person or send a letter. Ask for written proof that you’ve closed the account, and cut up any debit cards and checks for it.
Once that’s done, you’ve finished switching banks. Now it’s time to enjoy the perks of the new one. If it’s a community bank, consider going in person to meet the bankers so you can start reaping the benefits of a personal relationship with your local banking team!