Switching Bank Accounts? Know These 7 Simple Steps

Are you interested in switching bank accounts? All banks offer different kinds of benefits to their customers, which give you the liberty to choose your preferred options. If your current bank is not giving you the services you want, then swap your bank account.

Switching to a bank with all the facilities you need can help you attain maximum financial growth. To learn how to change bank account easily with just a few simple steps, read on.

Evaluate Why You Want to Switch 

Before making this decision of switching bank accounts, you must evaluate why you want to switch your bank. In most cases, you may be looking for better opportunities and services. Here are a few reasons that may be responsible for making you consider a bank switch:

• Moving to a new location
• Opening a joint account
• Paying exorbitant fees on existing account
• Getting poor customer services
• Getting higher interest rates from another bank
• Not being upgraded to better debit and credit cards 

How to Switch Banks 

You must follow these 7 steps to switch your account to another bank.

Step 1: Find Another Bank 

Find a bank that works for you and fulfils all your requirements. This ensures that you are getting an upgrade as compared to your previous bank. While searching for a new bank to swap bank accounts, you can look for these qualities/factors:

• Fees and charges 
• Interest fees on savings accounts
• Customer service
• Location
• Bill payment options
• Mobile banking services
• ATM availability
• Value-added services 
• Debit and credit cards and their benefits 

Step 2: Make a List of Linked Payments 

You may have multiple auto-debit payments linked with your current bank account. Before closing your existing account, make a note of these mandates to efficiently manage your payments:

• Automatic bill payments for utilities
• Recurring subscription payments for OTT platforms, magazines and more
• Recurring money transfers
• Automatic deposits

Also Read: How to Get Bank Account Statements?

Step 3: Open Your New Account 

After making all the necessary arrangements, you can open a new bank account by visiting your local branch or online. Here are common steps you can follow:

• Fill out the application form
• Submit self-attested photocopies of ID and address proof
• Submit your application
• Complete other formalities 

Step 4: Set Up a New Banking App 

Within a few days, you will receive your banking kit with your passbook, debit card, and chequebook. These documents prove that you have successfully opened a new bank account. Review the details carefully to further complete the process.

Upon receiving all these details, log in to your net banking account online as well as the mobile banking app and set up your debit card PIN. This way, you can continue using your new bank account and slowly replace the old one.

Step 5: Switch Bank Details 

Once your new banking app is set, you can start switching bank account details. Make sure you set up mandates using your new details for automatic payments.

Step 6: Move Your Money 

When everything is set up and ready to go, transfer funds from your previous bank account to the new one. The process can be completed within a few moments. However, this may take a while if you have a large amount in your account. This is because most transfer modes only allow you to send and receive a limited amount daily.

Step 7: Deactivate the Old Account 

Finally, you can close your account when your funds have been successfully transferred to this new account. To close your account, you will have to:

• Contact your bank and share your request
• Pay off the outstanding due (if any)
• On approval, destroy your debit card and chequebooks

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FAQs on Switching Bank Accounts 

Does switching banks affect credit score? 

No, credit scores depend entirely on how you repay your loan and credit card bills. You can switch your bank account as often as you prefer, and this won’t hamper your credit score.

Can I switch banks if I have a loan? 

Most banks will let you close your account and open a new one even with an existing loan. However, it depends on the bank’s policy. In this case, reviewing the terms and conditions or speaking to customer care before deciding is best.

What if I encounter issues during the account-switching process? 

If something goes wrong during the switch, get in touch with the customer service of both banks. The banks will get it resolved as soon as possible.  

Can I keep my old bank account open for a while during the switch? 

Your old bank account will remain open until you close it. You can also maintain both accounts while you use the newer one more frequently. It is completely up to you.