Switching Banks

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There are a variety of reasons that would prompt one to close an account. The lack of business location, poor services or new banking charges and other fees levied will make customers want to exit the bank. However, wanting to leaving a bank and actually doing it are two different things. So it is important to understand the whole process once you actually decide to do it. The process is quite simple, just remember to follow the steps precisely, so that overdraft fees and other charges are avoided. Banks offer services like automatic payment of bills and direct deposits so that they make the transfer of business bank accounts to be complicated. We shall look at four steps that should be followed when closing the account:

Preparation of the old and new accounts

For this step, consider not using the account for a minimum period of two weeks before moving to the new account.

This will help you to make sure that all your transactions clear before your account is closed. You will need to do research on your new location and take the necessary steps for opening a new account.

Identifying automatic payments

Automatic payments make paying bills and other important duties easy. Banks normally encourage customers to sign up for auto payment of bills and direct deposits, so that customers find it difficult to leave while hiding behind the facade of making transactions cheaper when processing. It is therefore important to make a list of withdrawals that you have made automatically, as well as deposits from your old account. Then, if there is any paperwork from your employee that needs to be filled, or from other places that you get your income, you will have to fill them to indicate where you require your payments to be made, or when you want your first deposit to be done. When you are done with this, arrange for your auto withdrawals to be transferred to your new account.

Transferring the rest of the funds

When you are finished with determining how auto payments will be done, and checks, as well as other payments, are cleared from your old account, you can now have the remaining amount transferred to your new account. To help you, consider using a cashier’s check, online transfer or personal checks. If you want the funds to reach your account faster, a cashier’s check is a good option.

Closing the old checking account

It is good to have this done personally, if possible. That way you get the satisfaction that the account is closed and that the bank does not tack on charges or report you to Check systems because of items that are not paid for. You may require a letter to request that the bank close the account. In the letter, you should include your address, name and account number. Also, you may consider adding your phone number, in case the bank wants to reach you. Again, request a letter or confirmation that indicates the closure of your old account and that all the fees for your account have been cleared.

Make sure that all checks have been cleared before removing the last cash from your account. If your account is closed, prior clearance of checks, they’ll bounce. This may end up damaging the relationship between you and the check holder or mean late payments. To make sure that the checks are cleared, compare the check that is online and your check register. Alternatively, you can call the check holder to confirm they have received payments for the checks.

Lastly, shred all the debit cards and checks for your old account so that identity thieves do not use them.

Conclusion

If you want to constantly get access to you funds, open a new account before you close the old one.

Don’t forget to have direct deposits stopped, as well as withdrawals and transfers into your old account, so that you do not incur additional fee charges.

It is important that you have a written confirmation showing that your old account is closed, to avoid issues like identity theft.

If you plan and organize, properly switching the account is easy. With services like automatic payment of bills, or direct deposits making it hard to leave the bank, switch kits have been introduced, so that you can easily switch your account.