
How to Switch Bank Accounts
Quick Answer
Switching banks doesn’t have to be hard, but it will take some time and planning. After deciding on a new bank, you’ll need to change direct deposits and automatic withdrawals and remember to leave enough money in the old account for any stray withdrawals.

Switching to a new bank account can help you earn more interest, save on fees or take advantage of better features. It takes some effort and coordination, but the benefits of switching are often worth it. Follow these steps to switch bank accounts seamlessly.
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 can offer better interest rates, while large national banks may 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.
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:
- Government-issued photo identification
- Social Security number or taxpayer ID number
- Proof of address
- Date of birth
- Contact information
Tip: If you're switching banks to earn a bonus, make sure you meet the eligibility requirements before opening an account.
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. 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 to your new bank, review your old bank statements for automatic payments connected to your account. 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 overdraft 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 this fee. Watch out for any outstanding checks that haven't cleared, pending debit card transactions or 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.
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Compare accountsAbout the author
LaToya Irby is a personal finance writer who works with consumer media outlets to help people navigate their money and credit. She’s been published and quoted extensively in USA Today, U.S. News and World Report, myFICO, Investopedia, The Balance and more.
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