How to switch banks online? Changing bank accounts can be daunting, but it is sometimes necessary to find better financial options or meet specific banking needs.
Whether you are dissatisfied with your current bank’s services, looking for higher interest rates, or simply want to switch to a more convenient banking experience, changing bank accounts requires careful consideration.
In this article, we will explore six necessary tips for changing bank accounts.
6 Tips on Changing Bank Accounts for Better Financial Decisions
Here are six steps to transfer a bank account to another bank safely.
1. Choose a Bank That Suits Your Needs
The first step to changing a bank account is choosing another bank with features and benefits aligning with your financial goals and requirements.
You have many options, including traditional and new-age online banks, with different types of bank accounts.
Most people think about opening a salary account when changing a bank account. So, you can also search for the best bank for salary accounts to take advantage of the benefits offered.
When you want to change your bank account, here are some things to consider to help you make better decisions:
- Minimum balance requirements
- Additional fees or how to avoid them
- Minimum deposit requirements
- ATM networks and any limitations over ATM transactions
2. Open a New Account
Once you decide which bank to choose, it’s time to open a new account. You can do it by visiting the bank branch physically, or if the bank operates online entirely, you can open an account through their app.
Keep documents such as your ID proof, address proof, and other documents with your personal information like Aadhar card number, full name, contact number, and address.
3. Transfer Money Into the New Account
After changing the bank account, it’s time to transfer money from the existing account to the new one.
You can transfer money from your savings account or change the salary credit instructions in your company and have the salary credited to your new bank account.
4. Signup for Mobile and Online Banking
When changing your bank account, enroll in mobile or online banking to access your account at your fingertips.
And if you have selected an online bank with no physical branches, then banking online is your only option.
The bank union will help you create an online ID on their website and help you log in and verify your details on it.
In most cases, the same user ID and password are used for online and mobile banking.
Read also: Fixed deposits vs. debit funds: Which one to choose?
5. Update Automatic Deposits and Payments
After opening a new account, there’s more to do than just add funds. You need to move any automatic payments or deposits in your existing account to the new one.
Also, analyze what deposits or monthly payments you want to cancel before you link the auto payments with the new bank account. Once you have made your decision, update the account information:
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Update direct deposits:
If you have any direct deposits linked to your old account, changing your bank account will only make sense for you to update the account information for these direct deposits to the new account.
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Reschedule automatic bill payments:
Update the account information on any automatic bill payment you have set up.
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Set recurring transfers:
You will also need to update the account information if you have any recurring transfers in your existing bank account.
Moreover, keep the old account for at least one full billing cycle to ensure every automatic deposit and payment is carried over to the new bank account.
See also: Best online payment solutions for e-commerce in 2023
6. Close the Existing Bank Account
If the bank of your existing account has a physical branch, visit to learn how to close the bank account.
Once you have transferred everything and the payments are going through your new account, close the existing account.
Also, make sure not to leave an outstanding balance like an overdraft fee in the old bank account because that can impact your credit report if the bank reports debt.
Bottom Line
Changing bank accounts can be beneficial for individuals looking to improve their financial situation or take advantage of better banking services.
However, it is important to consider various factors, like fees, interest rates, account features, and customer service, before switching.
By thoroughly researching and considering these aspects, you can make informed decisions that align with your financial goals and needs.
Therefore, if you are considering changing your bank account, take the time to assess your options and make a well-informed choice that will benefit you in the long run.
Author Bio:
Priyanka Rao is a content strategist for Jupiter-Money and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms.
In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
