Much of the time, we don’t think too much about our bank. We’re often more worried about getting paid and paying our bills using it. But J.D. Power said that more Americans were changing their primary banks, with customer satisfaction a major driver. Others are tired of expensive fees or want more options.
Even when you know you should, switching can seem like a drag. You might worry you’ll miss a payment in the process. I’ve switched banks a few times, and it’s not that complicated. You just have to be careful and not rush into closing the old account. Use this guide to switch banks without running into snags.
Open Your New Account
Opening a new bank account isn’t hard. But give it some thought. Start with what you don’t like about your current bank. Maybe that’s the customer service, fees, locations, interest rates, and so on. Then decide what you’re looking for.
As for me, this all depends on account type. For checking, I don’t want fees, I like early direct deposits, and I want a bank I can drop by in town. Though I’m more focused on a high APY for a savings account and am fine going with an all-digital bank. In no case would I choose any bank account without FDIC or NCUA insurance. I’ve found the FDIC’s Get Banked site helpful.
Once you find the best option, you probably can open the new account online. I’ve opened several accounts with these usual steps:
- Answer several personal questions (like my name, address, SSN, income, job, citizenship, and birthdate).
- Choose from account options, like requesting checks or adding a co-owner.
- Give my ID information.
- Sometimes show a utility bill to prove my address.
- Read terms documents and electronically sign.
- Deposit a minimum amount for some accounts.
- Make my online banking account.
The new bank account is usually open quickly. Though getting the debit card or checks can take a week or two. You might want to wait for these before you start switching things over.
Move Direct Deposits
You’re probably like most people who like to get paid with direct deposit. You’ll need to figure out how to move your direct deposits to the new bank. Unless you want to risk paychecks going to your old account or receiving a paper check.
Most companies will let you update your direct deposit details by going into your employee portal. Social Security and other government programs usually let you do this online too. I helped my grandfather with that. You could also call the place or go to HR.
There are some other options as well. Many banks will give you a direct deposit form. Some also let you handle this in their apps. You could also always go to a branch or call your new bank if you’re not having luck with the options I mentioned. I recommend the online route first, though, since it’s simplest.
Regardless of the method, you’ll need to provide the account number and routing number and the type of account. You might also need to show a voided check. Sometimes they’ve let me make a screenshot of my account information instead.
Beware that your next direct deposit might still go to the old account. It can take a pay period or two to update, as Wells Fargo says. Be safe and update the direct deposits as soon as the new account is open. You want the money to be there when bills start to be paid.
Change Your Autopay
You probably have a lot of bills automatically being paid from the current bank account. Your mortgage or rent, car insurance, Netflix, cable, water, credit card payments, electric, etc. Not updating these with your new account can cost you fees from your bank and the company you’re paying. You also don’t want missed payments hurting your credit.
You’ll usually update autopay on the company’s website. Plug the new bank’s routing number and account number in. But make sure the company confirms your change. Also, know it may take weeks for some payments to update, like Medicare.
Maybe you also used your old bank’s online bill pay. In that case, you’d need to enter all those payments on your new bank account’s online bill pay. Then you can remove them from the old account. Again, make sure everything’s set up OK and the new account has enough money for all your bills.
It might be too late for some payments. For safety, you might make those manually. In most cases, the company will skip the auto payment if you do this. At least you won’t miss a payment. Also, watch for new transactions on the account.
Close Your Old Account
You want to think about closing the old bank account only after you’re sure the switch has gone through smoothly. Still keeping some money in there is smart for at least a few weeks, as the CFPB says. You’ll be able to catch any stray auto payments if you do. You might also avoid a headache in case a direct deposit processes for your old account.
At that point, closing the account is smart. Many checking accounts have monthly fees that are more likely to show up with a low balance. It would be harder to meet the account minimum to waive them. Another problem is potential inactivity fees for not using the account for a few months. That happened to me with an old savings account in college. Plus, I don’t want unused accounts open due to identity theft.
The actual steps can widely differ by bank. Some make it easy and have a “close account” link on your online banking site. Others will do it if you call. Unfortunately, I’ve also had to visit a branch or fill out paper forms by hand to close an account before. That was more of a hassle. One of my accounts also had a closure fee, so ask about that.
Expect the bank to make you transfer your money out before closing the account. I did this easily via a linked account at another bank. The money can take a few days to transfer, though. However, you might prefer to withdraw the cash in person.
When you close the account, the bank will also probably want your account number and information. They use this to verify your identity.
Final Tips
Take the FDIC’s advice to safely toss your old account’s cards and checks. Also regularly check the new account’s balance and even better, use transaction alerts. You want to keep enough money there so that future payments don’t bounce. Don’t end up with insufficient funds and late fees.
FAQs
Does it ever make sense to just switch accounts at the same bank?
If a new account would give you what you want, consider it. I did this to avoid a fee. But I wasn’t unhappy with the service or anything else. It doesn’t hurt to call and ask about potentially better accounts.
What’s a good sign I should consider another bank?
Bad service, fees, high rates, and inconvenience are good reasons why I’d switch. Few digital features and account options may be a problem for you. If you’ve outgrown the bank, you might be in for a switch.
Is switching banks ever a bad idea?
I wouldn’t do it if I’d pay more money. I also wouldn’t do it if my bank had some loyalty benefits I’d lose. Plus, it also gets complicated if payments are pending from that account.
Our articles provide information purely for educational purposes and do not constitute financial, tax or investment advice. You should always consult with professionals like licensed financial advisors or accountants before making any decisions. We aim to provide up-to-date and accurate information, but we make no guarantees regarding the accuracy or completeness of any content. All our examples are provided for illustrative purposes and may not reflect your personal results. We are not liable for any losses or damages arising from your reliance on the information provided.
Sources:
- https://www.jdpower.com/business/press-releases/2026-us-retail-banking-satisfaction-study
- https://www.chase.com/personal/banking/education/basics/how-to-choose-a-bank
- https://www.associatedbank.com/education/articles/personal-finance/banking-basics/how-to-choose-a-bank
- https://www.fdic.gov/consumer-resource-center/2024-03/thinking-about-moving-another-bank
- https://www.consumerfinance.gov/consumer-tools/bank-accounts/moving-your-checking-account/
- https://www.fdic.gov/getbanked
- https://www.wellsfargo.com/help/direct-deposit/
- https://www.firstalliancecu.com/blog/how-to-switch-your-direct-deposit-in-4-easy-steps
- https://cnb1901.com/direct-deposit-switch
- https://ask.fdic.gov/fdicinformationandsupportcenter/s/article/Q-I-changed-banks-and-want-to-have-my-bills-automatically-paid-out-of-my-old-account-transferred-to-my-new-account-what-should-I-do?language=en_US
- https://www.medicare.gov/basics/costs/pay-premiums/medicare-easy-pay
- https://www.consumerfinance.gov/ask-cfpb/can-i-close-my-account-whenever-i-want-en-957/
- https://www.wellsfargo.com/help/checking-savings/open-close-account-faqs/
