How to Seamlessly Switch Your Checking Account

Switching your checking account to a new financial institution can feel like a daunting task, but with careful planning and attention to detail, the process can be smooth and hassle-free. Whether you're looking for lower fees, better perks, or enhanced customer service, here's a step-by-step guide to help you make the transition without missing a beat.

Switch banks for your checking account: Steps from A to Z

1. Evaluate and choose your new bank

Start by researching various financial institutions to find one that meets your needs. Look for factors such as fee structures, interest rates, online banking features, customer service, and branch accessibility. Once you've chosen a new bank, open your new checking account. This often requires providing personal identification, proof of address, and possibly a minimum deposit. Following account opening, you should enroll in online banking. This will ensure you can easily access your accounts, transfer funds, and view eStatements. 

2. List and update recurring transactions

To smoothly transition to a new bank account, start by making a comprehensive list of all automatic payments and direct deposits linked to your current account. These might include utilities, streaming services, subscriptions, mortgage or rent payments, and insurance premiums. 

Once you have this list, it's time to update your direct deposits. Contact your employer and any other sources of income to provide them with your new account details. Make sure to do this well in advance of your next payday to avoid any disruptions. 

Next, update your automatic payments by logging into each service or biller's website where you have recurring charges and updating your payment information with your new account details. This step is crucial to avoid missed payments and potential late fees. 

Transfer the majority of your funds from your old account to the new one but keep enough in the old account to cover any pending transactions or automatic payments that haven't yet switched over. By following these steps, you can ensure a smooth transition to your new account without any interruptions to your financial commitments.

4. Monitor both accounts

Keep both your old and new accounts active for at least one to two months. This allows you to verify that all automatic transactions have successfully moved to your new account. During this period, monitor both accounts closely to catch any missed transactions. Additionally, watch for any outstanding checks you've written that haven't cleared yet. Make sure there's enough money in your old account to cover them and track these outstanding checks to prevent any overdrafts. This careful monitoring will help you avoid financial hiccups during the transition.

5. Close the old account

After ensuring all pending transactions and recurring payments have switched to your new account and there's no remaining activity on your old account, you can proceed to close it. Visit your old bank branch or contact their customer service to close your old checking account. You should receive a check in the mail with any remaining funds from the old account. Use mobile check deposit to deposit the funds into your new account. Lastly, make sure to get written confirmation of the account closure for your records. This will come in handy should your previous bank erroneously charge you for inactivity. 

6. Verify the transition

After opening your new account, review the first few statements to ensure all direct deposits and automatic payments are processed correctly. Double-check that there are no issues with the transition. Once your old account is closed, destroy any remaining checks and debit cards to avoid potential misuse. This step helps secure your financial information and prevents unauthorized transactions.

Switching your checking account to a new financial institution requires careful planning and attention to detail, but the benefits can be well worth the effort. By following these steps and diligently managing the transition, you can enjoy a seamless switch and start taking advantage of the new features and benefits offered by your new bank or credit union. 

For a free checking account with no minimum balance requirements, turn to General Electric Credit Union (GECU). Open your Simply Free account with the help of a GECU team member or fill out our online form 24/7/365. From Early Pay,¹ which gives you access to your paychecks and others ACH deposits up to two days early, to Round-Up, which can help you earn up to $350 of debit card rewards a year,² you’ll discover there’s a lot to love about your GECU checking account.