7 Easy Steps On How To Change Banks Without Stress | Full Guide

how to change banks
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Moving from one bank to the other doesn’t have to be so complicated. The most important thing is knowing how to change banks – as you would not want to move from bad to worse.

Let us show you step by step how to change banks without stress.

While changing banks is a good idea, making the initial choice may be overwhelming. People are worried that they may lose their money or meet more inconveniences. However, this is not so! You can change banks easily and not lose your money in the process.

People change banks for a lot of reasons. Some may include; moving to another state, high rates, surcharges, and other inconveniences faced doing fiscal matters.

If you are facing either of these issues, it may be time to change banks.

Grab a bottle of beer if you can, let’s show you how to change banks without stress!

How To Change Banks Easily?

Changing banks don’t have to be very stressful. Irrespective of your reason, you can change banks with ease.

Let us see how to change banks easily shall we?

#1. Select A New Bank

The first step in changing banks is to decide the new bank that will give you a better banking experience like; a good savings rate, active mobile banking, good customer service, amongst others.

Place no limit on your selection criteria, explore all banking platforms before you make your choice. You can also check Credit unions, Traditional banks, and online banks.

Don’t worry, I explained it below.

Credit Union

These are financial entities that are customer-owned. Since its members control them, they operate on a non-profit rate and provide their member’s credit at good rates.

Traditional Banks

These are brick-to-mortar banks (i.e. banks with branches all over). Though they may seem old, they offer multiple services and convenience to their users.

Online Banks

As the name implies, its services are online. You don’t have to be in touch to do your fiscal activities. Hence, they make up with low-interest rates and good banking experience.

Ensure that you properly go through the new bank’s requirement to be certain that it meets your criteria before you change banks.

#2. Open An Account With Your New Bank

Now you have selected the new bank you want to change to, the next step is to open an account. Fortunately, opening an account is very easy. You can visit the branch and the staff will guide you through the process. If it’s an online bank, just follow the steps on their website.

Either way, it is not a stressful process.

You’d require these documents.

  • ID (like a driver’s license)
  • Personal data
  • Utility bill
  • Social Security Number
  • Employer name and contact information (if setting up automatic deposits)

Also, you would need to deposit a certain amount of money as required by the bank. This amount is used to open or maintain the account.

#3. Activate All Automatic Payments

After you have created a new account successfully, you can go further and set up all your automatic payments. That is, bills linked to your account that are automatically paid for when they expire. Payments like Rent, Netflix subscription, power bills (electricity or gas), telephone bills (landline and mobile phone), water and sewer bills, and taxes.

Go to the section where these payments are made; for instance using PayPal, and change your bank account details. Also, update your new account information at work so your paycheck isn’t sent to your old account.

If you’ve opened your new bank account with the aim to avoid fees, keep in mind that you may need to transfer more money to cover your bills.

See? changing banks isn’t so stressful. Let’s go further to see the next step.

#4. Transfer All Your Money

Go ahead and transfer your money from your old account/bank to the new bank. However, keep some money in your old account to cover up for any automatic payments that haven’t cleared.

To make the transfer, you can use electronic payment means and certified checks – aside from carrying cash from one bank to the other. But both will hold your funds for a few days.

#5. Start Using Your New Account

Now that your new account is open, has your funds, and is receiving your income, you can start using it to pay your bills, go shopping, or do whatever you choose.

Do not make any withdrawals or transactions from your old account, and do not close it.
Keep an eye on your old account for at least two account statement periods.

Since you have moved all your debits and credits to the new account, your old account shouldn’t have any activity. If any transactions appear, resolve them with your old bank immediately.

#6. Close Your Account

Now that you have started using your new account and are sure that the old account serves no purpose, you can go ahead and close it.

You may need to send a letter or visit the bank with your ID and other documents to have them close the account. Before you leave, ensure your old bank gives you a document that states that the account is closed.

Keep this properly as it will protect you in case they fail to close the account.

#7. Monitor Your Old Account

Don’t just stop using your old account and assume it’s closed. You’ll need a document from the bank itself that shows they are aware that you closed your account. This is because banks will sometimes reopen accounts that customers have closed without informing them.

“One of the ways they might reopen it is, not even your fault. A check comes through, and the bank may use that as an opportunity to reopen the account and charge you a late fee, overdraft fee, and before you know it, you’re getting a call that you owe the bank $100 and you’re not even aware that the bank reopened your account. It’s called a Zombie account,” says Banks.

Hence, Set a reminder for yourself to call your old bank a month after closing your account and ask them to verify that the account is still closed.

Why Do People Change Banks?

People change banks for a lot of reasons. It could be because of the excess bank fee, poor customer service, low state of the banks technology, or even the inconvenient ATM.

When all these problems linger and the bank doesn’t give a good response, people are forced to change to a better bank with good banking experience.

My Final Thought Is..

If you’ve had a bad experience with your bank or perhaps are not comfortable using the bank, You can go ahead and change banks.

This post shows you how to change banks without stress.

I hope this helps you do it better

Good luck!


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