How to switch banks

Trying to save money on bank fees? Need to open an account with your spouse or find a bank in a new state? Find an account with higher interest rates? Whatever your reasons for switching banks, check out this helpful guide to learn how.

When you’re ready to start the process, review these five easy steps so you know how to close your old account and open a new one:

1. Choose your new bank and open an account. When switching banks, the first step is to open your new bank account. The process for opening an account will vary based on the bank’s policies – at Citizens, new customers have the option to open a checking account online for maximum convenience. Once you’ve opened your new account and made an initial deposit, you can begin transferring money from your former account to your new bank account.
2. Update your direct deposits. After you've opened a new checking account, there are two ways to switch your existing direct deposit over to this account. First, you can ask your employer for a direct deposit form. The form should be simple and won't take too long to fill out. Second, if you’re opening a Citizens account, you can use Pinwheel to set up direct deposit online within minutes in 3 easy steps. Wait until you see the direct deposit show up in your new checking account before closing the old account.
3. Update your automatic payment information. Next, set up automatic payments from your new account at least two weeks before the next payment is due. Then, cancel or delete any online bill payments or subscriptions you had set up on your old bank account. If you have automatic payments being withdrawn by a third party, be sure to notify the payees that you are changing banks. You’ll also want to ensure your new account has the required funds to make the payments to avoid an overdraft fee and meets any minimum balance requirements.
4. Phase out your old checking account. Be sure to cancel automatic bill payments and stop writing checks, making ATM withdrawals and purchasing items with your debit card at least two weeks before you want to close the account. This will help prevent any items from posting after your account has closed, which could trigger fees and the unintentional re-opening of your account. Additionally, review your current bank's policy on fees for inactivity to avoid incurring fees just as you're about to change banks.
5. Close your old checking account. Most banks will give you the option of closing your account in person or with a signed form. This letter generally includes the bank’s name and address, your name, phone number and signature (authorizing the closing of the account) as well as the forwarding address for the remaining balance. You may also need your old account number and routing numbers. When switching checking accounts, be sure to destroy the checks and ATM cards from your previous account to prevent bank or identity fraud.

When you’re thinking about switching banks, it’s important to make sure you’ve chosen the right account for you – especially if it’s been a while since you’ve evaluated your banking options. When you’re ready to open a checking account, we’re ready to help you. Learn about all of our checking account options and how we’re ready to help you reach your money goals.