Easy guide to follow while switching checking accounts
Most people simply dread the idea of switching checking accounts because of the huge hassles involved while switching from one account to another.The very thought of moving your funds and the automatic bill payments can be quite scary. However, this may not be a long-term solution especially if you are looking at maximizing your earnings or benefitting from the various features that are offered through other banks. Follow this simple guide and you can easily set up another checking account with ease.
Firstly, take a good look at the previous month’s statements from your current checking account. Check the automatic bill payments that are deducted from your checking account every month. Also make another list, where you initiate online payments on a regular basis. These are the type of transactions where you don’t have to write checks, but they don’t occur automatically either. Then, this payment information needs to be updated and your creditors need to be intimated about the same, so you can carry on making these payments using the same method.
Generate another list of all the income sources, where direct deposits are made into your checking account. This may include payroll direct deposits and even child support and other such direct deposits.You should also take down details of any automatic savings plan that you may have initiated in your checking account. The automatic transfer that is done from the checking to the savings account needs to be cancelled. You will have to set it up with the new checking account after that.
If you have limited funds, you may open the new checking account by making a small deposit, but if you have sufficient funds, you may set up the automatic bill payments through this new checking account. In case you use physical checks, you may order the checks and make a note of the account numbers and routing as well. This information would be required to transfer automatic bill payments, automatic savings transfers, and direct deposits as well. Switch payment details from the old checking account to the new one without causing any disruptions or delays.
After you ensure that there are no more savings transfers or automatic payments coming from your previous checking account, you may change the payroll direct deposit and any other source of income into your new checking account. Once the first payroll direct deposit is made to the new checking account, you may safely reset the automatic bill payments etc. Even the automatic savings transfers can be done once it is set up to withdraw from the new checking account. If you initiate payments to creditors regularly, you can update the mode of payment in your profile. This will allow the accounts to take out money from the new checking account. So, you can put all the details of your new checking account and make payments.
After you complete all these procedures, you must ensure that all the checks and payments have been cleared. Once that is done, you may close the old checking account and start operating the new one.