Sometimes it may be necessary for you to switch banks. Maybe your bank raised its fees, or maybe its branches near your home or workplace have been closed down.
Here are 5 easy steps to switch to a bank that’s better.
1) Research a new bank
Before you close your account at your current bank, research a new bank. The new bank should provide facilities such as making online bill payments and direct deposits, free checking, and higher interest rates on savings accounts.
The bank’s customer service is important too. Check if the bank has branches near your home or office.
How will your checking account work? Does the account require you to maintain a minimum balance? Do you have to pay a fee if you end up making too many withdrawals during a month? What is the initial deposit you need to make to open the account? Make sure your research helps you answer all these questions.
2) Open your new checking account
After selecting a bank, open a new checking account there. However, do so before you close your old account so that you can clear all the payments associated with your old account.
To open your new account, you’ll have to provide basic details like your name, date of birth, and address, along with your Social Security number and a photo identity card like your driver’s license, passport, or state ID card.
You will then have to make an initial deposit to set up the account.
3) Cancel automatic payments at your old bank
Once you open your new checking account, immediately cancel the automatic payments at your old bank to prevent creditors from taking money from your empty or closed account. Set up these automatic payments with your new bank. Also, make changes related to your paycheck and inform your company’s human resources department about your new account.
4) Close your old account at the right time
After setting up your new account, ideally, wait for a month before closing your old account so that all your checks are cleared, and you are not charged a late fee for missing out on any payment.
5) Get it in writing
Once all your payments are settled, close your account and get it in writing. This will prevent your bank from reopening your account or saying your account wasn’t closed.