How to Switch Bank Accounts

1. Research Banks

Start by researching which bank will fit your needs and daily banking habits. Compare new accounts to your current one, weighing the benefits and costs of each.

To choose a new bank, consider:

• Your financial goals: If you're saving for a major goal, look for a bank that offers higher interest rates. If you frequently need access to cash, prioritize a bank with a large network of ATMs.
• Account type: Credit unions may offer better interest rates, while large national banks might offer more financial products.
• Account features: Consider whether you need features like early paycheck access, overdraft protection or rewards.
• Fees: Look for banks with waivable monthly maintenance fees, no ATM fees and low or no minimum balance requirements.
• Deposit insurance: Make sure your new bank or credit union has deposit insurance from the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA). This insurance protects you against losses of up to $250,000 per account holder, account type and institution.

Tip: Consider looking for a bank with a welcome bonus. For example, some banks may reward you with a bonus if you open an account and set up direct deposit. Others may require you to deposit a certain amount of money, such as $1,000. Check bank specifics to know what requirements you'll need to meet.

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Learn more: Signs It's Time to Switch Banks

2. Open Your New Bank Account

Once you've selected a bank, opening an account is a straightforward process. Most banks let you apply online, though you can visit a branch if you prefer in-person service at a traditional bank.

To open an account, you'll typically need to provide your:

• Government-issued photo identification
• Social Security number or taxpayer ID number
• Proof of address
• Date of birth
• Contact information

Tip: It's a good idea to have the method you'll use to fund the account handy before you start. Decide if you'll link another bank account, use a debit card or apply in person with cash.

3. Make the Minimum Opening Deposit

Some banks require a small initial deposit to open the account, usually at least $25. Depending on whether you're opening your account online or in person, you can make your minimum deposit a few ways:

• Check
• Mobile deposit
• Cash at a branch or ATM
• Debit or prepaid card
• Transfer from another bank

The minimum deposit is just a start. Depositing more will allow you to switch over automated payments and start using your new account right away.

4. Move Direct Deposits to Your New Bank

Before closing your old account, update your bank information—your routing and account numbers—with your employer, government benefits sponsor or any other income sources.

Be aware: Direct deposits can take one or two pay cycles to switch over. Keeping your old account open ensures you don't miss a paycheck.

5. Update Your Subscriptions and Recurring Payments

Once your deposits are going into your account at the new bank, review your old bank statements for automatic payments and update the payment information. This is critical to avoid late fees or canceled subscriptions. Check your recent bank statements for:

• Streaming services
• Phone and internet bills
• Insurance payments
• Mortgage or rent
• Auto loan payments
• Credit card payments
• Gym memberships

Tip: Review at least three to six months of statements so you don't miss quarterly or annual charges.

6. Link Your New Checking Account to Your Savings and Retirement Accounts

If you have automatic transfers to savings or retirement accounts, update them to pull from your new checking account. This is also a good time to review your monthly contributions. If your income has increased or you've cut expenses, you can raise your savings amount and reach your goals faster.

7. Keep Money in the Old Account

Don't empty out your old account right away. Keep a small cushion to cover any charges you might have overlooked. Otherwise, you could accidentally overdraw your account and end up with fees.

If your bank charges a fee for low balances, keep at least the minimum balance in the account to avoid the fee. Watch out for any outstanding checks that haven't cleared, pending debit card transactions and subscription renewals.

Learn more: How Long Does It Take to Switch Banks?

8. Close the Old Bank Account

After you've confirmed that your deposits, payments and transfers have successfully moved, transfer any remaining funds to your new account and close the old one. You can usually do this by calling your bank, visiting a branch or sending a written request. Finally, shred old checks and debit cards and store bank records for tax or proof of payment.

Frequently Asked Questions

The Bottom Line

Having the right bank account can simplify your money management. If your current bank isn't meeting your needs, switching bank accounts could be the first step to reaching your financial goals. Make sure you've successfully moved automatic deposits and payments before closing your old account to avoid potential negative effects of switching.