What is the best way to move my checking account to another bank or credit union? | Consumer Financial Protection Bureau (2024)

FAQs

What is the best way to move my checking account to another bank or credit union? | Consumer Financial Protection Bureau? ›

Data reveals that switching to a credit union translates into tangible benefits, as credit unions offer significantly more affordable rates on several products compared to traditional banks. You can expect higher CD rates, lower credit card rates, as well as lower rates on fixed and variable mortgage products.

Data reveals that switching to a credit union translates into tangible benefits, as credit unions offer significantly more affordable rates on several products compared to traditional banks. You can expect higher CD rates, lower credit card rates, as well as lower rates on fixed and variable mortgage products.

Most banks and building societies use CASS to help you switch current accounts. You can view the full list of institutions on the CASS website. Under the Account Switch Service Guarantee, your new bank will switch your payments and transfer your balance for you, while your old bank will close your old account.

Once you've done your research and opened a new bank account, redirecting automatic payments and direct deposits may only take a few days. You should still keep your old account open for another month or two to ensure all your automatic payments and deposits redirect correctly.

An early account closure fee is a predetermined amount of money — usually between $5 and $50 — that the bank will charge you for closing your account soon after opening it. Of the banks that charge this fee, many will impose it upon customers who close their accounts within 90 days of opening.

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Is there a downside to switching banks? ›

If you're unhappy with your bank, it's worth shopping around before switching and finding out if it will affect your credit score. Some people are unaware that opening a new account can impact their credit score. A good credit score is crucial if you intend to borrow, including getting a mortgage, in the future.

No, providing you repay any outstanding overdraft(s) on your previous account(s) as required by your old bank or building society.

Once you're sure that all direct deposits are coming in and all automatic payments are going out of your new account, transfer any remaining funds from the old account into the new one. Transferring the funds electronically is probably the fastest way, but you may also use a personal check or wire transfer.

If you're sending a large amount of money, you may want to use a wire transfer at your bank. You'll need the recipient's account and routing numbers. You and the recipient will likely incur fees. Wire transfers take place in less than 24 hours but do not occur on weekends or on bank holidays.

Average wire transfer fees

Wire transfer fees have a wide range – from $0 to $50, depending on how and where you're sending the money. Domestic outgoing wire transfer fees typically range from $0 to $35, while international outgoing wire transfer fees are usually $35-50.

After all pending payments go through, you can withdraw any remaining balance and ask to close the account. The process of closing an account varies from one financial institution to another. You might need to call customer service, visit a physical branch or mail in a form.

Your bank could decide to close your account if you haven't been using it enough (or at all). If there have been no debit or check transactions for at least three years, the bank might consider the account abandoned and refer it to your state's unclaimed property program.

Closing a bank account won't hurt your credit, as long as your account is in good standing. If you have a negative balance with the bank, you'll want to resolve that balance before closing the account.

I would like to close my account because I am having difficulties in maintaining multiple bank accounts. Along with this letter, I am submitting the account passbook and my identity confirmation. Please perform the necessary and begin the closing procedure as soon as feasible. Thanking you.