How to Change Banks: A Checklist of Sorts 

How to Switch Banks blog article header photo

Changing banks? Don’t let this simple chore become a nightmare.

Life can be complicated. We try to streamline processes to help you navigate unchartered territories. In short, we’re always here to help. This time we’re showing you how to change banks easily

Change of any kind can be stressful. But when it’s over changing banks, things don’t have to be stressful. Over the last few years, we’ve witnesses several changes in banking tends. Perks, or lack of them, caused some customers to make the switch.

If you’re wondering how to switch banks, you’re in the right place. Keep reading…

Or check out one of these other helpful banking resources:

It could be daunting, especially if you’ve been with your current bank for a long time. You might even have second thoughts about leaving. It is advisable to make a pros and cons list for your current bank. If the cons outweigh the pros, you’re definitely doing the right thing. So, once you’ve decided to bank elsewhere, we have tips to ensure a quick and easy transition.

It is natural to feel a little overwhelmed but we both know that change is inevitable. In fact, 27% of consumers won’t switch banks because they either don’t realize they can, or think it’s too much work.

However, you obviously have your reasons to consider a new bank. There is simply no point in waiting around when you’ve made up your mind. Your action steps are what get you to your destination. Which, in this case, is a new bank.

We love checklists! They’re a productivity boosting tool and helps manage tasks. You have a list of steps to get to your goal in a simple and straightforward way. We’ll guide you through each step and help you make informed decisions. At the end of this blog post, you will have a clear and concise understanding of how to change banks.

Without further ado, we would like to present the steps that will help you switch banks in an easy and convenient way.

How to change banks infographic

So, let’s get started!

1. Pick your new bank:  

First and foremost, every good bank is federally insured. It is one way of knowing that your money is safe. The FDIC (Federal Deposit Insurance Corporation) guarantees sums of up to $250,000 in deposit accounts. If you bank with a credit union, make sure they are insured with the NCUA which offers protection like the FIDC.

2. Open an Account:

Bank fees includes a whole plethora of fees that could be charged by a financial institution. When choosing the right bank for yourself, make a comparative analysis of what different banks charge in fees. ATM fees, monthly maintenance fees, overdraft fees, transaction fees, processing fees etc. all add up to reflect what you’re expected to spend. The goal is to find a bank that has lower fees. Some banks waive off their fair share of fees. A little digging around will help you eliminate ones that over charge.  

3. Redirect your paychecks: 

What makes a bank a good bank? The people that operate and run it at every level – from the teller to the CEO. It goes without saying that we all like to be treated with respect. This is particularly true if we’re a paying customer of the business. You want to feel welcome at your bank. It is important that their staff is friendly and helpful. Of course, an employee might be having a rough day and may not be their usual self. But nothing can excuse poor customer service. Customer experience is an essential parameter to consider when choosing a bank. You want your phone and in-person transactions to be handled in a polite and professional manner. Banks are supposed to have employees that care about customer experience.

4. Set up online and mobile banking: 

If the pandemic has taught us anything, it is that human beings are great at adapting. We switched from several traditional services to their digital variants. Many of us worked remotely, ordered takeout, got our groceries delivered, and helped our kids transition to online learning. Some of us might have had a smoother change than others. But one thing that stands out is the convenience of online banking. Managing your money from your mobile device or laptop is a basic feature every bank should have. The best banks take it a step further and create a user-friendly interface. They employ an easy-to-use navigation system on their website to make the process simple. On our list of attributes, easy online banking earns a solid spot.  

5. Transfer funds to new account: 

Checking accounts usually have very low interest rates. Consider opening a savings account if a bank offers competitive rates. Good banks offer special savings accounts among other perks. Such incentives are a strong reason why people bank with them. You could explore some high-interest savings account options from a few top banks. If you care about how much interest you could earn on your savings, finding out a bank’s savings account options help you get informed.

6. Update automatic payments: 

Whether you need a loan right away or not, it is a smart move to find out the loan options offered at your bank. It is useful to have knowledge and information. Although you don’t have to get a loan from your primary bank, it is convenient to do so. Sometimes you’ll get special offers if you’re a loyal customer with them. Try to find out their rates on mortgages, personal, and auto loans. Compare rates with other banks and weight your pros and cons before deciding. 

7. Close your old account: 

Whether you need a loan right away or not, it is a smart move to find out the loan options offered at your bank. It is useful to have knowledge and information. Although you don’t have to get a loan from your primary bank, it is convenient to do so. Sometimes you’ll get special offers if you’re a loyal customer with them. Try to find out their rates on mortgages, personal, and auto loans. Compare rates with other banks and weight your pros and cons before deciding. 

Some Frequently Asked Questions regarding changing banks: 

Is changing banks easy?

Yes. Changing banks can be made easy if you break up the entire process into smaller tasks. We hope our switching bank checklist helps make the process easy.

How difficult is it to switch banks?

Switching banks may sound like a complicated process, but in reality, it can be done by following a few simple steps. Our changing banks checklist above beaks down the process into seven easy steps.

Does it cost money to switch banks?

It depends on your bank and your funds. For example, your current bank may or may not have a closing fee if you recently opened your account there. Some banks will charge a wire transfer fee if you transfer your funds from one bank to another. Just as many banks will charge a cashier’s check fee if you try to side-step the wire transfer. You might face an overdraft fee if you accidentally overdraft your account by transferring all the money over while a payment is waiting to be processed. We recommend doing further research on which fees might apply when you change banks.

Does switching banks hurt your credit?

Switching banks shouldn’t impact your credit score. The only reason it might impact your credit score is if you make changes to your credit card account through one bank or another. Closing a credit card account or applying for a new credit card can impact your credit.

Is it bad to switch banks?

This is a case-by-case scenario. For some, switching banks means getting higher interest rates, smooth banking experience, superior customer service, and better rewards programs. Some may even switch banks due to the convenience of location of the branch or ATMs in the area. If the perks at a new bank are worth it, then changing banks is a good idea.

Switching banks is certainly not a fun-filled activity. It takes a little work and a lot of energy. It is easy to get flustered and that’s okay. Our aim is to offer you support as you prepare for this change. We know you could think of at least a hundred other ways to spend your time. But the result is so worth it!

We hope you feel more informed now than you did before. Happy switching!

Do you have helpful bank switching tips? Let us know in the comments!

Anna Reeve Net Pay Advance author headshot
Anna Reeve

As someone that spent a lot of time reading as a kid, I was deeply intrigued by the written word from an early age. My first full-time job post college was writing content for high-end fashion websites. Following my graduation from the MBA program at Pittsburg State University, I found employment in Marketing. For the last couple of years, I have been creating content on several platforms. I am a proud dog-mom to my black labs – Sky & Harry Potter (took fangirling to a whole new level there!), a connoisseur of Indian cuisine, a mediocre artist, and a reality TV addict.

Net Pay Advance is a licensed loan provider, locally owned and operated in Wichita, Kansas. Our No. 1 priority is helping you, the customer, by providing access to the cash you need and helping support financial independence goals with valuable, informational, and entertaining content. Stay up-to-date on our posts by following the Net Pay Advance Facebook, Instagram, and Twitter pages. Our organization is committed to transparency; learn more about our authors and editorial policy. The information provided within this blog is for educational purposes only and should not be construed as financial or legal advice. Please contact us if you have any questions.

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