How to Change Bank Accounts

The first step is to find near you where you can replace your account in a different/new bank. Doing a relevant Google search is the easiest way to accomplish this.

When you wish to switch banks, the first order of business is opening an account at your new banking institution. This process can be completed online, as allowed by many banks, by simply filling out a form with your name, contact information, address, employment details, driver’s license number, and other information. With your new bank account information, you will then receive a new debit card for your checking account.

An initial deposit from you must also be made into your new account. We like transferring enough to cover rent and bills for an entire, just to be certain we’ll be good for that particular month.

Check to see if a switch kit is offered at your new bank. To transfer your money while helping you sever ties with your old bank, there are some financial institutions that make this resource available. Do an online search for your bank’s name and the term switch kit in order to find one, or in the particular bank’s customer service department just inquire with a representative.

If the savings account you’re opening is a stand-alone, this step, coupled with closing your old savings account (find out more on closing accounts below), might be all you need to do. However, with a checking account, it can be more complicated to switch banks.

2.1) Analyze all your bank records, observing the automatically deducted expenses and regular bills via an individual company’s payment tools or through your bank’s bill-pay service.

2.2) Be sure to look for:

• your monthly mortgage payments or
• your rent checks,
• your credit card payments,
• your electricity bill,
• your water bill & gas bill,
• your beer-of-the-month club dues
• whatever you regularly have automatically deducted from your account, such as your gym membership fees.

You should review more than one month’s worth of expenses. Make a note also of any bills that automatically ping your account, whether they’re quarterly, semiannual or annual bills. For instance, you may have other less frequently withdrawn funds that are also done so automatically, such as health care expenses, sewage fees, and insurance payments. It is intense to look at a full year’s worth of expenses – but it generally helps nothing get by you. Lastly, we recommend you ensure you don’t have any uncleared outstanding checks.

As soon as you review your regular expenses, your redirecting of automatic payments to your new bank account should commence. Whether you previously funded your bills through the individual company’s bill-pay tools or through the automatic bill-pay system at your old bank will determine how you switch them over. You certainly will want to keep an eye on your regular bills throughout the first few months of the switch just to ensure that each bill is set for payment from your new account.

The new account must receive from you the redirection of all automatic deposits and your paycheck. To complete this step, it’s very likely that you will have to fill out a form with your employer. It could take a couple of months before this new system takes effect. The switch over to direct deposits is never an overnight sensation.

When setting up your new account, choose to link your checking and savings accounts. You can set up automatic transfers between the two accounts in order to accomplish savings goals such as fully funding an emergency fund or saving for a vacation. By connecting these accounts, you are covered in the event you accidentally overdraw your checking account; this is because, if you inadvertently overspend, you are allowed by many banks to pull from your savings to fund your checking account.

It can take a couple of months for new deposits and bill payments to go ahead and link with the new bank account. Thus, both accounts should be kept funded for at least two months just to be on the safe side. For a little spell, go ahead and take advantage of letting both accounts run in parallel to make sure the payments you’ve transferred over are proceeding from the right account. Be mindful that you may have to continue paying service fees or any monthly low-balance fees while juggling two accounts.

It’s time to officially bid adieu to your old bank account once you’ve gone through the process of transferring automatic deposits and payments.

It all depends on the bank, but sometimes one needs to jump through some hoops in order to close the old account. Since the banks’ plan is always to retain you as a customer of theirs, closing an account can be tricky at times. You might have to submit to the bank a request for closure of your account, in the form of an official letter, coupled with proper proof of your identification. Therefore, you must fully understand the process involved to be sure you’re following every step correctly. It could be worth your trip to your closest brick-and-mortar bank location just to ensure that every requirement is being met by you. Closing sometimes commands a fee in some banks. Any association with your former banking institution, such as old checks or debit cards, should be destroyed by you (cut or shred).

You need the bank to confirm to you in writing that the old account is closed so you can be sure. Most banks generally send it out to you automatically, but it’s good to ask them. You’re good, once you have your confirmation. Kudos to you! You have successfully switched banks officially.

Someone who has difficulty controlling their spending can benefit from a personal escrow account. Since no third-party oversees the account it isn’t technically an escrow — but segregating your money into a separate account can benefit you. Personal escrows are often used for the following purposes:

• Unforeseen expenses. The small expenses that catch you by surprise—gifts that as the host of a party you need to purchase, car repairs, unexpected veterinary expenses, etc.
• Non-monthly expenses. For example, you might be billed annually for a gym membership and quarterly for life insurance. You can save sufficient funds for these expenses with the help of a personal escrow.

Verify how much you had to spend on non-monthly expenses during the past year by going through your old bills. Take into account your unexpected and miscellaneous expenses, such as that bottle of champagne you bought someone when you were invited to their dinner bash. Your non-monthly expenses could include:

• car insurance premiums tuition or school expenses
• holiday shopping
• gifts
• veterinary expenses
• conference fees
• life insurance premiums
• car maintenance and repair
• car registration
• car insurance premiums

Set up a savings account. For paying non-monthly bills and for use for specific purposes, you should set up a separate savings account or high yield checking account. Though it could be difficult for you to handle, multiple individual accounts could also be set up by you, for each non-monthly expense.

• Total all non-monthly expenses, then divide by 12, so you can properly fund your account. To contribute to your account each month, you will need this amount.
• So that this amount is deducted from your monthly paycheck, you should set up an automatic deposit. When you are paid biweekly, simply divide your total amount by the 26 weeks in half a year (6 months).

Remember to take the money out of your escrow account whenever a non-monthly or unexpected expense arises. You can preserve the balance in your regular checking and/or savings account in this way.