How to Switch Banks
5 Min Read | Published: May 15, 2026
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Learn how to switch banks safely and efficiently, from choosing a new account to transferring funds and closing your old account.
At-A-Glance
- Switching banks can be a smooth process if you follow the right steps, from choosing a new bank to transferring funds and closing your old account.
- When selecting a new bank, it’s best to evaluate features like fees, rewards, and convenience.
- Proper planning helps you avoid missed payments or other disruptions during the transition.
After years of frequenting the same bank you’ve always used, you might realize that your current bank just isn’t doing it for you like it used to. Maybe you’re looking for better customer service, new account types, or the ability to access the ATM from your smartphone.
Breaking up with your bank can feel like a daunting life decision, but opening a new account that works for you can make a world of difference. Here’s how to do it safely and efficiently so that you can start the rest of your financial journey off on the right foot.
Why Switch Banks?
You may feel like a banking switch is beneficial for a few different reasons, like:
- Better Interest Rates or Rewards
Banks may offer different interest rates on products such as high-yield savings accounts (HYSAs) or certificates of deposit (CDs), and a higher rate could help you earn more on your savings. Or, if you’re looking for a rewards checking account or opening a new credit card, you may prefer the benefits at a different bank. - Lower Fees
Has your bank been charging you a hidden recurring fee for a specific feature? Well, different banks may charge lower or no fees for the same service, and potentially communicate them more clearly in advance. - Improved Digital Tools or Customer Service
Some banks offer more in-app services on your smartphone, such as the ability to track your spending or create a budget. Others may offer better ways to help you, like mobile app chatbots or later hours to answer your questions. - Preferred Features
You may see another bank advertising earlier access to direct deposit funds or ATM access with your digital debit card. If you find a bank that has more ways to support your financial management, you may want to consider switching.
Steps to Switch Banks Safely
Here’s a step-by-step guide on how you can switch banks conveniently and avoid potential risks.
Step 1: Choose a New Bank
If you’re fed up with a specific part of your banking experience, do some research to find a new one that can support you better. Take extra care to review their fees, mobile banking features, and branch locations before you make a decision. If you’re looking to open a new checking account, explore the different types of checking accounts that are available, and weigh the fees against potential key features and rewards.
Step 2: Open Your New Account
Once you’ve found your new banking hub, the next step is to ensure your new bank account is ready to receive and transfer funds. You may need to activate a debit card, deposit an opening balance into your new account, or set up account alerts on your smartphone.
Step 3: Transfer Funds
You can typically either transfer your funds between your accounts using a digital transfer service or by writing a check. While you may be eager to switch to your new bank as soon as possible, it’s a good idea to leave some money in your old account until you’ve fully transferred all your recurring payments.
Step 4: Transfer Recurring Payments
Take a moment to review the credits and debits on your current account. If you receive direct deposit from your job, pay bills, or have any recurring subscriptions, you’ll want to make sure those are connected to your new account. If you’re setting up automatic bill pay, make sure you have enough funds in the new account to cover the payments.
Step 5: Monitor Both Accounts
Before you fully switch to your new account, make sure it’s paying your bills correctly, receiving funds, and generally working the way you want. At the same time, keep an eye on your old account in case you forgot to transfer a subscription to your new account.
Step 6: Close Your Old Account
Once you’ve finally transferred your automatic payments, and your new account is supporting you in the way you imagined, it’s time to bid your old account farewell. If you still have funds in your account, the bank may be able to issue you cash or write you a check to ensure you don’t leave any funds with them. Once your balance is at zero, the bank closes your account.
Features to Look for When Choosing a New Bank
If you’re already frustrated with your current bank, you may have an idea about the type of support that you want from your new one. However, some banks have additional benefits that might not even be on your radar, such as:
- Lower Fees, Competitive Rates, and Rewards
You may find that some banks have lower fees for certain services or charge no fees at all. A new bank’s savings account interest rate might be higher, or they could offer better rewards for your spending with their credit card. - Evaluate Digital Accessibility
If you’re always on the go, a more user-friendly mobile app could make your life a lot easier. Or, if you prefer to bank on a computer, you want to make sure a bank’s online banking interface suits you. If you use other budgeting software or money-transfer apps, you may want to make sure they integrate with the new bank, too. - In-Person Convenience
Before choosing your next bank, consider whether it has convenient locations and ATM access. If there’s a branch nearby, you may want to walk inside and make sure the customer service is up to par.
Mistakes to Avoid When Switching Banks
The last thing you want is to go through the hassle of switching all your bill payments and subscriptions to a new bank only to find out that your new bank is like your old bank—or worse. If you choose wisely, you’ll find that there are greener pastures. You just need to know where to look. Some common pitfalls to avoid include:
- Hidden Fees
Make sure you understand your bank agreement carefully, and ask a bank representative to clearly explain how fees will be charged to your account. For example, if there’s a monthly maintenance fee, you may want to see if you can avoid paying it by keeping a higher balance or meeting a direct deposit quota. - Missing Out on Rewards
Some banks may offer perks for opening a new account or give you cash back on your spending. Before choosing a new bank because they offer certain perks, take a moment to reflect on how the rewards fit into your financial plan to see if you’ll actually benefit from them. - Poor Customer Service
You want to make sure that your bank has your back when you need it most. For some night owls, that could mean that they rely on their bank to assist them at all hours of the day. If you don’t like waiting on the phone for a representative, you may want to make sure your new bank offers reliable online customer service.
Frequently Asked Questions
Switching to a new bank account can be easy: Find a bank that offers features you value, open an account with them, gradually move your funds and subscriptions to your new account, and once everything has been transferred, close your old account.
If you have many automatic payments set up, it can be tricky to know when each one will hit. Check your bank statement for when a monthly subscription payment was last charged to your account, and update the payment settings with your new account information before you’re charged again next month. Or, you can check directly with the merchant or utility company to see when your next bill is due, and update your information before the due date.
It’s smart to keep both accounts open for at least a month so you can make sure all your bills are transferred to your new account. Plus, it could be smart to keep the old one open for a bit, just in case your new one doesn’t meet your expectations.
The Takeaway
When you’ve been with one bank for a long time, finding a new bank can seem like too much of a hassle to make it worth your time. But the truth is, sometimes it’s time to move on, especially if another bank is offering better interest rates or features that make it easier to manage your money. Once you open a new account, make sure your recurring bill payments and direct deposits are transferred, and then say goodbye to your old banking woes.
Check out rewards checking accounts with financial solutions that work for you.
Scott Drueding Hanson is a content writer and copywriter based in Brooklyn. His work focuses primarily on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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