How to Switch Banks? A Full 2023 Guide
It’s no secret that banks are charging more and more for their services. If you’re not happy with the fees your bank is charging, or if you’re just looking for a better deal, it’s time to switch banks. But moving your money to a new bank can be a hassle – especially if you don’t want to lose any of your hard-earned cash in the process.
Allow us to show you how to switch banks without losing time or money!
How to Switch Banks?
Switching banks is not as difficult as it may seem. If you are unhappy with your current bank or feel that you are paying too much in fees, research other options to find the best account for you. Once you have found a new bank or credit union, follow these steps to make the switch:
Step 1: Find a New Bank or Credit Union
You must first choose where you want to move your funds before you can switch to another bank. A traditional bank, a credit union, or an online bank are the most common alternatives.
With so many alternatives for creating a new account, it’s useful to have a checklist of things to look for while comparing banks. Consider the features and benefits, fees, interest rates, areas, and mobile services when moving banks.
Furthermore, look into the minimal opening deposits and minimum balance requirements of different banks. For example, one bank may have a lower threshold to open an account than another.
Finally, bear in mind that you don’t need to stick to just one bank. To better meet your demands, you can establish several checking and savings accounts at various banks.
Step 2: List Your Direct Deposits and Automatic Payments
Now that you have chosen a new bank, it’s time to move your direct deposits and automatic payments. This will help ensure that your bills are paid on time and that you don’t miss any important payments.
Before changing banks, make a list of all the companies and organizations that send you direct deposits. This may include your employer, the government, your pension or retirement plan, and any other regular income sources.
Next, list all of the automatic payments that you have set up. Automatic payments include your rent or mortgage, car payment, insurance premiums, loan payments, and subscriptions.
Step 3: Open Your New Account and Deposit Money
The next step is to open your new account and deposit money into it. To do this, you will need to provide the bank you’re switching to with your personal information:
- Name and birthdate
- Social Security number
- Mailing address
- Phone number
- Any kind of I.D. number
Opening an account is a quick process that usually takes less than ten minutes. Make an initial deposit into your new account (some banks demand a specific minimum opening balance), wait for the money to clear, and then check to see whether they’ve arrived in the new account.
Step 4: Sign Up for Mobile Banking
Most banks offer mobile banking services, which allow you to deposit checks, transfer money, and check your account balances from your smartphone. Once you switch your bank and open a new account, sign up for mobile banking so that you can keep track of your finances on the go.
If you have a bank account, your financial institution or credit union can help you set up online banking. You may need to enroll before using this feature. Once that’s completed, you may access your bank’s website, create a user I.D. and password, and log in to verify your account.
Step 5: Transfer Your Deposits and Automatic Payments
Now that you’re done with the bank switching process and deposited money into your account, you can transfer your direct deposits and automatic payments to your new bank.
To do this, you will need to contact each company or organization that sends you a direct deposit and provide them with your new account information. This may include your account number and the routing number for your new bank.
Before doing so, it’s a good idea to make a list of any recurring deposits or payments you wish to cancel. For example, if you have a subscription to a streaming service that you don’t use anymore, changing banks may be an excellent time to get rid of it entirely.
Step 6: Link Your New Account to Your Active Ones
If you have multiple bank accounts, you can link them together so that you can easily transfer money between them. This is a useful feature if you need to quickly move money around to cover unexpected expenses or take advantage of opportunities.
Linking your accounts is a fairly simple process: log in to your new account, find the section on transfers or payments, and enter the account number and routing number for your other accounts.
Step 7: Empty and Close Your Old Account
The final step of switching banks in Canada is closing your old account and withdrawing any money that you have left in it. To do this, you will need to contact your old bank and let them know that you want to close your account.
You may be able to close your account over the phone or online, but some banks require that you visit a branch in person.
Once you have closed your account, you will need to withdraw any remaining funds. You can do this by writing a check or transferring the money to your new account.
Most banks require that you close your old account before they will process a transfer request, so it’s important to do this step last.
Why Should you Switch Banks?
The decision to switch your bank is a personal one, and there are a variety of reasons why people choose to do so.
Customer service: Customer service is often cited as a primary motivator for switching banks. If you’re unhappy with the level of service you’ve received from your bank, it may be time to look for a new one.
High fees: Another common reason for switching banks is fees. Banks charge fees for everything from using an ATM to having a checking account, and these fees can add up over time. If you’re tired of paying fees, switching banks may be a good way to save money.
Interest rates: Some people switch banks in order to take advantage of better interest rates or perks. For example, if you have a large balance in your checking account, you may be able to get a higher interest rate by switching to a new bank.
Additional benefits: When choosing a new bank, it’s also important to consider the perks and rewards that are offered. Some banks offer cashback on debit card purchases, while others offer free checking or savings accounts.
More locations: If you travel frequently, you may want to switch to a bank that has branches in different cities or countries. This can be helpful if you need to access your money while you’re away from home.
The Bottom Line
Although switching banks is a big decision, it doesn’t have to be a difficult one. By doing your research and taking the time to find the right account for you, you can switch banks without losing time or money.
Read More: Canadian Banking Statistics
Switching banks in Canada is a relatively easy process. You can transfer your direct deposits and automatic payments to your new bank, and most banks will allow you to close your old account and withdraw any remaining funds.