How to Switch Banks Easily

Many of us are required to switch banks for various reasons. We may want to switch due to moving to a new place, or unfavorable experience with our current bank. Most of us don’t want to switch for being ignorant of all the steps that are involved.   

It’s a much easier undertaking when you break down the process into simpler and smaller tasks. So read on below to learn a few tips on how to painlessly and efficiently switch to a new bank.

Choose a Bank

First, you need to identify what are the services you are expecting from your bank. Decide on what type of bank account you want, savings, checking, or money market account. If you haven’t already chosen a bank then you can review the fee schedule and features of the bank to pick the right one. Going through the customer reviews will give you an idea as well. Banks with different kind of services are listed below:

Traditional banks:  

The big community banks are a good example of traditional banks. In most cases, traditional banks are known to impose higher fees than online banks or credit unions.

Credit Unions:

These entities have a lower and more lenient fee schedule. They operate much like the banks but are owned by the customers.

Online banks:

Online banks don’t typically have a physical branch that you can walk into. their services are all provided online and usually, the fees are lower than the traditional banks. Most of the time they offer higher interest rates.

You can choose to go with Keybank. Keybank is represented in 29 states and has 2193 branches from where they provide services. You can check out https://usa-banks.info/keybank/ to find the ones closest to you.

Open A Bank Account

The initial step you need to take to switch your bank account is getting your new account up and running. The sooner you get this done the better. Opening a bank account is an easy step and usually does not take more than ten minutes or so. 

Many banks will require you to have a minimum opening deposit so this is a point to keep in mind while opening your new account. Follow the steps below to make this switching easier for you.

Get a Head Start

You should open the new account at least a week or two before you finally plan to make the switch. This is important because it might take up to 10 business days for your new debit card to arrive by mail. You can use this time to set up the online account and provide the login credentials that you will use to access the account online. After you start using the account you should also install the bank’s mobile app on your phone for ease of remote access.

 Supply and Request for forms

To get features like wire transfers activated for your new account, some banks may require you to sign some form and return it by mail. You need to get these done promptly as it will enable you to be ready and be able to use the various features offered by the bank right away.

Link the New Account With Your Old Account

It is a good idea to set up an electronic link between the account you want to close and the new account you are going to open. You might need to transfer money between accounts until everything gets into place so linking the two accounts will allow you to do that easily and cost-effectively. If you use a person-to-person mobile payments platform in both your accounts, it will be faster to move your money for free.

Find Out the Monthly Expenses

Take note of all the bills that you pay automatically through your bank account. Make arrangements so that these can be paid from your new account, and until that time you do not close your old account. If you are concerned about something getting lost in the shuffle then you can consider switching to paper bills for a while. If you still want to use your old account to pay bills then you must ensure to transfer money from the new account. . 

Get the New Account Linked With Other Active Accounts

You can use the online services of the new bank to link all your accounts together at the same bank or a separate bank. This will enable you to meet your financial goals easily by making recurring one-time transfers from one account to the other. 

If you have a retirement or savings account that you are using to make a downpayment or as an emergency fund, you can easily schedule an automatic payment to that account from a checking account. This can be done if you link the new account with your other active accounts.

Get Your Income Redirected

If you are getting your wage or salary directly deposited to your old account, then you need to inform your employer of the change in account information,  to make necessary updates of their payment records to the new account. Here too you will need to transfer money from your old account to the new one by electronic transfer or a check until you finish switching banks.

You need to get this sorted out with your employer beforehand as it might take several billing cycles or pay periods to get the accounts switched to the new one. You especially need to check out all your income sources for this one, including Pension and Annuity Income, Investment Earning and Systematic Payments, and Social Security Benefits.

Close the Old Account After withdrawing the remaining fund from it

You need to withdraw all the remaining money from your old account after you have taken care of all your debits and credits. You have to give the bank formal instructions to stop paying interest, charging fees, producing statements, and also instruct them where to transfer the remaining balance.

After all this is done, you need to take the final step of closing the account. Your bank may offer the opportunity for you to do this online. Otherwise, just contact them and take their support to close your account for good. After the bank confirms that your account has closed, your switching to the new account will finally be successful.

 

*This is a collaborative post.