Whatever your reasons for switching banks may be, it is something that may not be as physically draining as moving into a new place, but it does have all of the mental weight and stress that comes with it. However, you can easily reduce your stress and anxiety about moving your money by using this step-by-step process to make the transition smoother. Here are four things you should do to make sure you move your money safely without any problems.
Open Your New Account at Your Chosen Bank
We are going to assume you have put the work into to find the next home for your money. Whether it be another major bank, a credit union, or an online bank, your first step after selecting the bank you want to move to is to open your new account. Make sure you know of any fees or requirements at your new bank so that you can plan accordingly. After that, you want to gradually move your money over to this new account.
Consider Everything You Will Need to Update
Before you start moving large sums of money, make sure you pay close attention to these key things:
- Any bank fees, such as the minimum balance fee
- Pending transactions that need to clear
- Automatic bill payments
- Linked Accounts
- Direct Deposits
The last thing you want to have happen is to be charged a bunch of fees due to you moving too much money too quickly. After any remaining transactions have cleared, begin the process of changing any direct deposits and automatic payments. Any service provider you have set up billing with will need to be updated that way payments wont suddenly fail due to the bill being charged to the old account.
Transfer the Rest of Your Money
Although you will most likely be using both accounts for at least one month concurrently, eventually you will want to move the rest of your money over. At first, moving large sums of money will seem like an annoying headache. You can of course just move your money in the form of cash, but if you do not feel comfortable doing this, then perhaps you can consider using a certified check or a wire transfer. However, the latter will most likely cost you a little bit of money, which will run anywhere between $25-30.
Close Your Old Account
Once you have completed the transfer of your money, all transactions on the old account have cleared, and everything is setup to run through your new account, you can move any last bit of cash you have and close the account. However, you should still be wary of any fees that may come with this. Banks may try to get back any incentives they gave you if you have not had the account with them for that long. Also, another thing that may happen is banks will reopen a consumers account without notifying them. One situation where this may happen is if a check comes through the old account, the bank will reopen it and try to charge the person late fees and overdraft fees. These are called Zombie accounts. This is why you need to make sure everything has cleared before you close the account. Once you do close the account, make sure you get documentation from the bank stating that it has been closed.