How to switch banks when moving

Moving to a new place is more than a change of scenery – it is a change of life. Your whole world changes – your dwelling, your surroundings, your community, oftentimes even your job and your daily routine. You need to change your address, switch service providers, update documents, etc. And you may even need to change banks.

Moving house doesn’t necessarily mean that you have to switch banks, but in many cases it’s your better (or your only) option. You need to consider all the relevant factors (financial implications, convenience issues, etc.), assess your banking needs, and find out the benefits and drawbacks of changing banks when moving so you can make the right choice for your specific situation.

Here is what you need to know in order to make an informed decision about staying with your current bank or choosing a new one closer to your new home – and to be able to easily switch banks if you decide to do so.

Do you need to change banks when you move?

The first bank-related question you need to ask when relocating to a new place is “Do I need to change banks when I move?” The answer depends on the specific circumstances in your case:

1) You don’t need to switch banks when:

• You’re moving locally and can continue using the same bank branch as before the relocation;
• Your bank has a branch near your new location (it is really easy to transfer your accounts to another branch of the same bank).

Of course, if you’re not happy with your current bank, you may decide to change it even if you don’t need to. However, it may be a good idea to wait a little – closing your existing banking account may affect your credit score which is highly undesirable if you’re trying to build your credit to qualify for a mortgage or another major purchase when you move.

2) You may want to switch banks when:

• Your bank doesn’t have a local branch close to your new home. As beneficial as online banking is, sometimes you may need to visit a physical bank branch and if the nearest one is located miles away that may cause a lot of inconvenience;
• Your current bank doesn’t meet your needs (in terms of available services, types of accounts, interest rates, loans, ATM network, etc.).

Good to know: Even if your bank doesn’t have physical presence in your new area, they may have tools that will allow you to easily take care of your banking needs without visiting a branch, so you may still not need to change banks when you move.

When asking yourself “Should I switch banks when moving?”, in addition to the above considerations, you should also keep in mind that changing financial institutions takes time and involves a lot of paperwork – it will make your move even more complicated that it already is.

See also: How to prepare to move out of state

How to transfer a bank account from one state to another

Even if you don’t need to change banks when moving to another city or state, you will definitely want to transfer your accounts to a nearby branch.

Fortunately, that is quite a simple process – all you need to do is visit your current branch (or the branch in your new location) and submit an application for change of home branch, along with your old cheque book and a proof of residence in the area where you want your account to be transferred.

Your account(s) will be transferred to the new branch within two weeks after submitting the application and a new cheque book will be issued to you.

In recent years, it has become possible to transfer savings accounts online from one branch to another, anywhere in the country. The transfer is free of charge and takes place within days.

So, when wondering “How to transfer my bank account to another state?”, you have nothing to worry about – the process is as easy as it gets. Changing banks when moving across the country, however, is far more complicated.

How to change banks when moving out of state

If you find that switching banks when moving makes the most sense in your case, you need to initiate the process well in advance.

Choose a new bank

When looking to change your bank after moving, you need to first assess your banking needs and then find out what the financial institutions in your new area have to offer:

1. Determine what banking services and features are important to you

• What types of accounts do you need?
• What banking services do you use?
• Do you need a credit card? A loan? A mortgage?
• Do you use ATMs often?
• What are you looking for in a bank? Stability? High interest rates? Low fees?

2. Compare the banks in your new area

Make a list of the banks that have branches near your new home and see what they have to offer. Compare the financial institutions in terms of:

• Account types and features;
• Interest rates;
• Bonuses and perks;
• Fees (monthly account fees, ATM fees, overdraft fees, etc.);
• Minimum balance requirements;
• Transaction limitations;
• Online/mobile banking capabilities;
• ATM access.

Last but not least, browse online customer reviews to get perspectives about the banks you’re considering.

Once you’ve narrowed down the candidates, check if they have federal deposit insurance and visit the banks’ websites to read the fine print in the disclosures (look for hidden fees or potentially problematic terms and conditions). It should be easy enough to choose the best financial institution for you.

Open a new account

When you find a safe and reputable bank that meets your needs and has a conveniently located branch, open an account at that bank without delay – keep in mind that it can take up to 10 business days to receive your new cheque book and debit (or credit) card.

To open your new account, you’ll need to fill out an account application and provide:

• Your name, address, and phone number
• Photo identification (driver’s license, government-issued ID or passport)
• A proof of your social security number
• An opening deposit (the minimum required amount differs from bank to bank)

You can either visit a branch of your chosen bank or open your new account online.

Transfer automatic payments and direct deposits

If you receive automatic deposits or have automatic payments withdrawn from your old account (bills, mortgages, etc.), you need to transfer them to your new account:

• Review your statements over the past 12 months and make a list of all your automatic transactions;
• Set up autopay bills and other automatic payments to be paid up from your new account (make sure there is enough money in your new bank account to cover your automated payments);
• Update linked accounts – utilities, subscriptions, insurance, etc., as well as retirement accounts, investment accounts, and any other accounts you may have;
• Set up direct deposit to ensure that your income (payroll, investment income, government benefits, etc.) is routed to your new bank.

Bonus tip: When transferring funds and withdrawing money from your old account, be sure to leave a small buffer in it to cover any forgotten transactions, unexpected fees, etc.

Close your old account

The final step of switching banks when moving is to close your old account. Don’t do it too quickly though – it’s best to leave your old account open for a few months after the relocation until you’re sure that all your automatic payments are coming from your new account and all your income is rerouted to it.

Once you’re certain that all your automatic transactions are fully updated and all debits and credits on your old account have cleared, you can close the account. Balance your checkbook (or confirm your balance electronically) and either withdraw all remaining money (ask for a cashier’s check) or request the bank to transfer the remaining funds to your new account.

Depending on the bank, you may need to close your existing accounts in person or may be able to do so via phone or by mail. Be sure to get a written confirmation from the bank that your account is closed.

Good to know: It is a good idea to give your old bank your new address and phone number – they may need to contact you for a number of reasons, including overlooked payments, unexpected deposits, or attempted fraudulent use of your account or personal information. (Related: How to protect yourself from identity theft when moving)

Knowing how to switch banks when moving will give you peace of mind that you’ll be able to take care of your banking needs in an efficient and convenient way after the relocation. Thanks to modern day technology, however, you don’t really need to change banks when moving – unless you want to, of course. There are online tools and capabilities that make banking possible – and easy – from anywhere. It’s up to you to decide which option will work better for you in your new life.