Switching Accounts: Things To Remember
Knowing how to properly switch banks can save you late fees and headaches. Still, it can be tricky. Here’s a list of things to address to make sure the transition is seamless:
- Direct deposit: Give your employer your new account information.
- Automatic bill payments: Cancel any old ones — whether in the bank’s own bill-pay platform or through, say, your cable provider’s website — and set up new ones with your new account information.
- Recurring transfers and linked accounts: This could be between a new checking and an old savings account, or making sure your PayPal information is up to date.
- Smartphone apps, text banking and alerts: Download your new bank’s app, sign out of and delete your old one, and turn off any alerts you were receiving.
- Paper checks: Destroy old blank ones.
- Safe-deposit boxes: If you’re cutting ties completely, collect your items in person and consult your rental agreement for specifics about closing out your box.
Get a written statement from your old bank confirming that your account is closed and ask about its account-reopening policies. Why? Some banks will reactivate closed accounts to honor automatic payments or receive deposits, putting you back on the hook for any fees. So be thorough in your switch.