Various reasons may make you want to switch banks, it may be because you’ve had a bad experience or because you want to know your money is doing good, not harm. If this is you, but you’ve always felt like it will just be too hard, we’re here to let you know that it can actually be a lot easier than you may think.
This checklist covers what you need to consider when moving from one bank to another.
1. Open an account
If you haven’t already opened an account with the bank you would like to switch to, know that most banks, like Bank Australia, allow you to do this online.
2. Change your banking details with your employer
Start with the biggest areas that will make the most impact to your financial situation. For most individuals, this involves getting their salary deposited into the new account. Connect with your HR department to fill out the right forms to update their records with your new bank details.
3. Contact companies to change your direct debits over
If you have fixed bills or routine payments set up for direct debit from your current bank account, update your contact details for those companies directly with your new information. More often than not you should be able to login to your online account and update your details straight away. In some cases it may involve calling the company to get them to update the details for you or sending them an email for things such as life insurance or home alarm monthly payments.
4. Connect your new bank details to online accounts
When switching banks, people often forget to change their bank details across their online accounts, such as Uber, PayPal and online shopping providers. Increasingly, many service providers now take payment over the web so it’s important to check through your online registrations and see where you might need to update your account details.
5. Sign up for internet banking
Sign up for online banking at your new location to track that all the updates you have made with your new banking details are working as they should. For example, check that your direct debits are being processed and that your wages are being deposited.
6. Close out and review
Once you have transitioned your account from one bank to another, the final step is to close out the previous account and decide how you are going to receive your payout. You will likely have the option to withdraw in cash, receive a cheque, or transfer to your new bank.
Switching banks doesn’t have to be a headache and it can be quite painless if you use this checklist as a guide.
Looking to make an ethical switch? Here's more info on our Everyday Access account.