Sick of your big bank fees and looking to move? Check out our How To Move Your Money video.
For consumers interested in switching their accounts, Consumers Union offers the following tips:
Open your new bank account with a small deposit – leaving the bulk of your funds with your old bank. Deposit just enough to avoid any fees you may be charged for maintaining a low balance.
Next make a list of all the automatic payments and deposits scheduled to go in and out of your old account each month. If you have direct deposit, ask your employer to reroute your paychecks to your new account. Find out what date the first deposit will occur. Once you know the date, reschedule each automatic payment or debit to come out of your new account and make sure to ask the company what date the change will apply.
Leave some cash in your old account for at least one month.
Once you are sure that all automatic payments and all direct deposits are coming and going from your new account, electronically transfer the final funds from your old account.
Once the transfer clears, follow the procedure laid out by your old bank to close your account. If you don’t close it, you might get hit with a monthly account maintenance fee even after you stop using it. And be sure to get written confirmation that the account is closed.
For more detailed information, see Consumers Union’s Move Your Money checklist of steps to take to ensure that all of your bills are paid on time and you avoid being charged overdraft fees.