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How to Switch Banks

Last updated: August 26, 2026

Switching from one U.S. bank to another is a 30 to 60 day process if done carefully, with the bulk of the work happening in the first week (opening the new account, re-routing direct deposit, updating recurring bill pay) and the rest as a wind-down of pending transactions at the old account. The single biggest mistake people make is closing the old account too soon, which causes recurring auto-debits (gym membership, streaming services, insurance, utilities) to bounce after the old account is closed and creates expensive overdraft fees, returned-payment fees from billers, and even ChexSystems black marks. The simple rule: open the new account, run both accounts in parallel for 30 to 60 days, then close the old one only when no transactions have hit it for 2 full statement cycles.

The common reasons U.S. customers switch banks: monthly maintenance fees at the old bank (the leading reason), better APY at an online savings bank (Marcus, Ally, Discover, SoFi), moving to a new state where the old bank has no branches, poor customer service or fraud handling, life events like marriage / divorce / inheritance, bank merger consolidation (e.g., 2026 Cadence into Huntington), or wanting to consolidate after using too many banks. Whatever the reason, the mechanical steps are the same: open new, transfer recurring activity, wait out pending transactions, close old.

This page covers why people switch, the full step-by-step process with timing, the common mistakes that turn a clean switch into months of trouble, the bank-provided switching tools (Chase MoveMoney, BofA Switch Assist, automated services like ClickSwitch), what to watch for during the transition (tax forms, year-end statements, IRS bank info), special cases (closing an account after a death, switching during a bank merger like Cadence to Huntington), and a checklist of what to update beyond direct deposit and bill pay.

The 9-step switching process: open, transfer, wait, close

Step 1: Open the new account first (week 1)

Open your new bank account before doing anything else. See our How to Open a Bank Account guide for the full process. You will need the new routing number and account number for almost every subsequent step, so the new account must exist first. Online account opening at most major banks takes 5 to 15 minutes; in-branch takes 20 to 45 minutes. Most new accounts are usable immediately for transfers; the physical debit card arrives by mail within 7 to 10 business days (or is instant-issued at the branch).

Tip: keep the new account funded with a small starter deposit ($25 to $100) so the account stays open and active during the transition. Some banks require a minimum balance to avoid maintenance fees, so check the requirements before depositing.

Step 2: Make a complete list of what hits your old account (week 1)

Pull 3 to 6 months of statements from the old bank and make a written list (spreadsheet works well) of every recurring transaction:

  • Direct deposits from your employer, pension, Social Security, federal benefits
  • ACH debits / automatic payments to credit cards, mortgage, auto loan, student loan, utilities (electric, gas, water, internet, cable), insurance (auto, home, renters, health), gym memberships, streaming services (Netflix, Hulu, Spotify, YouTube Premium, Disney+), cloud storage (iCloud, Google One, Dropbox), software subscriptions, charity recurring donations
  • Debit card recurring charges not handled as ACH: many subscriptions go through a saved debit card rather than ACH. Look for charges that recur weekly, monthly, quarterly, or annually
  • Zelle / Venmo / PayPal / Cash App linked accounts and recurring transfers
  • External brokerage transfers: scheduled investment transfers to Vanguard, Fidelity, Schwab, Robinhood, M1, etc.
  • Tax payments: IRS direct debit and state tax automatic payments

This list is the most important deliverable in the entire switching process. Missing one item creates problems weeks later.

Step 3: Transfer the bulk of your balance to the new account (week 1)

Move most of your money to the new account, but leave enough in the old account to cover at least 2 to 3 statement cycles of expected pending transactions. A common buffer is 1 month of expenses plus $500. Use ACH transfer through your new bank’s external-account-linking feature, or wire transfer for large balances.

Avoid: emptying the old account immediately. This is the most common mistake and causes overdraft fees from any auto-debit that hits the old account for the next 60 days.

Step 4: Re-route direct deposit (week 1 to 2)

Give your employer a new direct deposit form with the new bank’s routing number and account number. Print a void check (or use the printable void check from the new bank’s mobile app) as supporting documentation. Direct deposit typically takes 1 to 2 pay cycles to switch over, so plan for the next 2 to 4 weeks of pay to still go to the old account.

For federal benefits (Social Security, SSI, VA, federal pension): update direct deposit through ssa.gov, va.gov, or by calling 1-800-MyMedicare for federal benefit programs. State benefit programs (unemployment, state pension, state tax refunds) have separate update processes; check your state’s benefit administrator website.

For the IRS: update direct deposit information for tax refunds when you file your next tax return on Form 1040 (you cannot proactively update IRS bank info between filing seasons; the new bank info on your next return supersedes the old).

Step 5: Move automatic bill pay and ACH debits (week 1 to 3)

Go through your list from Step 2 and update the bank account on each recurring payment. There are two distinct ways recurring payments are set up:

  • Pull from biller (ACH debit): the biller draws money from your account on a schedule (utilities, mortgage, credit cards typically use this). Update the bank account at each biller’s website or by calling them. They will need the new routing and account number. Typically takes 1 billing cycle for the change to take effect.
  • Push from your bank (online bill pay): you set up scheduled payments through your bank’s bill pay feature, and the bank sends payment to the biller. Recreate these scheduled payments at the new bank. The new bank may have an “import bill pay” feature to copy your old bill pay payees automatically.

Most major banks (Chase, BofA, Wells Fargo, U.S. Bank, Capital One) offer a free switching tool that helps automate Step 5 by pulling a list of recurring debits from your old bank and helping you re-route each one. See “Bank-provided switching tools” below.

Step 6: Update payment methods on linked services (week 1 to 3)

Update the saved bank account or debit card on any service that has your old bank information stored, beyond the recurring billers from Step 2:

  • Online retailers: Amazon, Walmart.com, Target.com, eBay, etc. (saved payment methods)
  • Payment apps: PayPal, Venmo, Cash App, Zelle
  • Subscription gift / prepaid services: Roblox, gaming credits, app stores (Apple ID, Google Play, Microsoft Store)
  • Brokerage and investment accounts: Vanguard, Fidelity, Schwab, Robinhood, M1, Wealthfront, Betterment
  • Crypto exchanges: Coinbase, Kraken, Gemini if you have linked bank ACH
  • Tax software: TurboTax, H&R Block, FreeTaxUSA for next year’s refund deposit
  • HOA or condo automatic dues payments
  • Property tax or vehicle registration auto-pay if you have it set up

Step 7: Wait 30 to 60 days for pending transactions to clear (weeks 2 to 9)

Keep the old account open and lightly funded for 2 full statement cycles after Step 6. During this time, monitor both bank accounts daily for:

  • Late-arriving auto-debits from billers you missed in Step 5 (these are the most common surprises)
  • Annual subscriptions that only debit once a year and may hit during your transition window
  • Refunds or chargebacks still routing to the old account
  • Reversals or NSF returns from the old account
  • Tax forms (1099-INT): at year-end, the old bank will send you a 1099-INT for interest paid; you need this for tax filing

If a debit hits the old account that you missed, transfer money to cover it and update that biller before the next cycle.

Step 8: Close the old account properly (after 60 days of clean activity)

Once you have had 2 consecutive statement cycles with no transactions hitting the old account other than your own monitoring deposits / withdrawals, close the old account formally:

  • Withdraw any remaining balance (transfer to new account, or take as a cashier’s check from the old bank)
  • Close the account in writing: most banks require either a signed closure request form, a phone call with identity verification, or an in-branch closure visit. Online-only banks usually have a “close account” button in account settings, but customer service may need to confirm by phone
  • Get a written confirmation of closure (email, PDF, or paper letter). Save this for your records in case the old bank or its successor sends you any future correspondence
  • Destroy unused checks and debit cards: shred old checks and cut up debit cards. Do not throw them in the trash intact

Banks are not allowed to keep an account open against your stated wishes; if a bank delays closure citing pending transactions, ask for those specific transactions in writing and a closure target date.

Step 9: Verify the closure and update your records

30 days after the closure date, log in or call to confirm the account is fully closed (not just “inactive” or “frozen”). Update your records (personal finance app, budget spreadsheet, bookkeeping) to remove the old account. Save the closure confirmation, the last few statements, and the final 1099-INT (if any) for at least 7 years for tax purposes.

Map of banks near me

Find a nearby bank branch to open your new account in person or close your old account formally. Many switches benefit from at least one in-branch visit at each bank.

Bank-provided switching tools (free)

Most major U.S. banks offer a free switching service to help with Steps 4, 5, and 6. These tools typically scan your old bank statements (with your authorization) to identify recurring direct deposits and auto-debits, then generate prefilled forms to send to your employer and billers. Available at:

  • Chase Direct Deposit Switch: free tool inside the Chase mobile app and chase.com that helps update direct deposit with your employer and re-route recurring payments
  • Bank of America Switch Assist: free tool for new BofA customers transitioning from another bank
  • Wells Fargo Direct Deposit Switch: free service through wellsfargo.com
  • U.S. Bank Switching Service: through usbank.com
  • Capital One 360 Auto Bill Pay Transfer: imports recurring payment information from your old bank
  • ClickSwitch (third-party): offered through many community banks and credit unions, automates the entire bill-pay re-routing process

These tools handle 80% of the work, but they cannot find debit card recurring charges (subscriptions on a saved debit card) automatically. You still need to go through your list from Step 2 manually for those.

What changes vs what stays the same when you switch banks

What changes

  • Routing number: each bank has its own. See our What is a Routing Number guide for the routing number directory
  • Account number: each bank assigns its own account numbers
  • Debit card: new card number, expiration date, CVV; you must update saved cards everywhere
  • Checks: new checks with new routing/account numbers
  • Online banking login: new username, password, and security settings
  • Mobile app: download the new bank’s app, set up biometric login
  • Zelle phone number / email: re-register Zelle at the new bank using your same phone number or email
  • Statement timing: monthly statement cut-off date may shift
  • Customer service phone number: each bank has its own; see each bank’s individual page on this site for verified numbers

What stays the same

  • Your Social Security Number and personal identity: these never change
  • Your credit score: switching banks does NOT affect your credit score (a bank account is not a credit account)
  • Your tax obligations: you still owe the same income tax, just paid from a different account
  • Your existing credit cards: credit cards are separate from bank accounts (your Chase credit card stays even if you close your Chase checking account)
  • Your mortgage, auto loan, and other loans: loans are separate from deposit accounts. You can switch banks for checking/savings while keeping your Chase or Wells Fargo mortgage; you just need to update the payment source at the loan servicer
  • FDIC insurance protection: both old and new banks (if FDIC-insured) protect your deposits up to $250,000 per depositor per insured bank per ownership category. See our What is FDIC Insurance guide

Common switching mistakes to avoid

Closing the old account too soon

The #1 mistake. Wait at least 30 to 60 days after re-routing all direct deposits and auto-debits. Pending transactions can take weeks to clear; annual subscriptions can hit months later. Closing too soon causes returned-payment fees and overdraft fees.

Forgetting debit card recurring charges

Subscriptions paid by saved debit card (Netflix, Spotify, gym apps, etc.) are NOT visible in the bank’s switching tool because they are debit transactions, not ACH. Go through 6 months of debit transactions manually and update each one at the merchant’s website.

Missing the IRS update on next tax return

If you e-file with the IRS using direct deposit to the old account, your refund goes to the old account even after the bank is closed. The IRS will mail you a paper check after the deposit fails, but it adds 6 to 8 weeks. Update your bank info when you file the next tax return.

Year-end 1099-INT confusion

The old bank will send you a 1099-INT for interest paid during the year (or partial year). You need this for tax filing. Make sure the old bank has your current mailing address before closing the account so the 1099-INT can reach you in late January.

Forgetting checks already written

If you wrote a check 30 days ago and the recipient has not deposited it yet, that check will be presented for payment against the old account. Keep enough balance in the old account to cover any outstanding checks. Personal checks can take months to be deposited.

Bank-provided switching tools miss debit card subscriptions

The switching tools at Chase, BofA, Wells Fargo, U.S. Bank, etc. only see ACH transactions. They miss subscriptions billed to your saved debit card. You must catch these manually.

Not destroying old checks and debit cards

Throwing intact checks or debit cards in the trash is a fraud risk even after the account is closed. Shred checks and cut up debit cards before disposal.

Special cases

Switching during a bank merger (Cadence to Huntington, Sandy Spring to Atlantic Union, etc.)

When your bank is acquired by another bank, the merger typically auto-converts your account to the new bank. You can ride out the merger (your old routing number works for a transition period, your direct deposit gets re-routed automatically, you receive new debit card and checks from the new bank), or you can use the merger as a trigger to switch to an entirely different bank if you do not like the new owner.

Recent examples: Cadence Bank merged into Huntington Bank February 2026, with customer account conversion in mid-2026. Atlantic Union Bank merged with Sandy Spring Bancorp April 2025; former Sandy Spring customers now bank with Atlantic Union. First Horizon Bank completed its merger of equals with IBERIABANK July 2020. First Citizens Bank acquired Silicon Valley Bank in 2023.

If your bank is being merged and you want to switch elsewhere, do so during the transition period (typically 6 to 12 months between merger close and full systems conversion) when both old and new bank brands are operating.

Closing an account after a death

When a sole account holder dies, the account becomes part of the estate and is handled by the estate executor with a death certificate, court letters testamentary, and the deceased’s tax ID. For joint accounts, the surviving co-owner becomes the sole owner. For accounts with a payable-on-death (POD) designation, the beneficiary becomes the sole owner upon presenting a death certificate. This is a separate process from a regular switch and typically requires in-branch visits at the bank holding the account.

Switching after a divorce

Divorce typically requires separating joint accounts into separate single-owner accounts. The divorce decree specifies how shared deposits and balances are divided. Each ex-spouse opens new accounts in their own name, and the joint accounts are closed once the balance allocation is complete. This often requires in-branch visits with the divorce decree as documentation.

Switching to a no-monthly-fee account

The #1 reason people switch is to avoid monthly maintenance fees. Major no-monthly-fee checking accounts include: Huntington Asterisk-Free Checking (no minimum, no monthly fee, no overdraft on small overspends), Ally Interest Checking, Capital One 360 Checking, Discover Cashback Debit, SoFi Money, FNBO Direct.

Switching to a higher-yield savings

Online-only banks consistently pay 4 to 10x the APY of traditional bank savings accounts. Major high-yield savings options: Marcus by Goldman Sachs, Ally Bank, Synchrony Bank, Discover Bank, SoFi Bank, FNBO Direct, Capital One 360 Performance Savings. These are FDIC-insured up to $250,000 per depositor per bank.

Switching from online-only to traditional bank (or vice versa)

Switching to an online-only bank: the main change is losing branch access. Make sure your cash and check-deposit needs are covered (most online banks reimburse out-of-network ATM fees and accept mobile check deposit). Switching from online-only to traditional: you gain branch access for cash deposits, large cash withdrawals, notary services, and complex needs but may lose APY on savings.

Frequently asked questions

How long does it take to switch banks?

The full switch typically takes 30 to 60 days. The first week is the active work (open new account, list recurring transactions, transfer balance, re-route direct deposit, update billers). The remaining 30 to 60 days is a wind-down period of monitoring both accounts for late-arriving transactions before closing the old account.

Should I close my old bank account immediately?

No. The single biggest switching mistake is closing the old account too soon. Keep the old account open and lightly funded for at least 30 to 60 days after re-routing direct deposit and auto-debits. Annual subscriptions can take months to debit; checks you wrote weeks ago can take months to be presented. Close only after 2 consecutive statement cycles with no transactions.

What if I forget to update a recurring payment?

If a debit hits the old account after you have closed it, the payment will be returned NSF (non-sufficient funds) by the old bank. You will get a returned-payment fee from the biller (typically $25 to $35) and possibly a late fee. The biller will then attempt to contact you. Update the biller with the new bank info immediately and pay them directly. If the old account is still open with insufficient balance, you may also get an overdraft fee from the bank.

Does switching banks hurt my credit score?

No. Bank checking and savings accounts are not reported to credit bureaus, so opening or closing them does not affect your credit score directly. The exception is if you leave the old account with an unpaid negative balance; that can be sent to collections and reported to ChexSystems (not credit bureaus). See our How to Open a Bank Account guide for the ChexSystems explanation.

Do I need to update my direct deposit with the IRS?

Yes, but only when you file your next tax return. You cannot proactively update IRS bank info between filing seasons; the new bank info on your next Form 1040 supersedes the old. If a tax refund is already scheduled to the old account, you can call the IRS at 800-829-1040 to redirect, but this adds delay; the IRS will mail you a paper check if the direct deposit fails.

What happens to my credit cards if I close my checking account?

Credit cards are separate from bank checking accounts. Closing your Chase checking account does NOT close your Chase Sapphire or Freedom credit card. You can keep credit cards with one bank while doing all your checking and savings at a different bank. Just update the auto-pay source on your credit card to the new bank.

What if my old bank charges a closing fee?

Most U.S. banks do not charge a closing fee. A few charge a fee if you close an account within 90 to 180 days of opening (typically $25); waiting beyond that window avoids the fee. Online-only banks generally do not charge closing fees.

Can I switch banks if I have a joint account?

Yes, but both co-owners must be involved. To switch a joint account: open a new joint account at the new bank with both co-owners; transfer balance to the new joint account; re-route any direct deposit and bill pay; have both co-owners sign the closure request at the old bank.

How do I switch banks if my employer only allows one direct deposit account?

Most employers allow at least 2 direct deposit accounts (e.g., 90% to checking, 10% to savings). If your employer only allows one, give them the new bank account and use online transfers to move money to your other accounts after each paycheck deposits.

What is ClickSwitch and how does it work?

ClickSwitch is a third-party automated bank-switching service offered through many U.S. community banks and credit unions. After opening the new account, you authorize ClickSwitch to scan your old bank statements (with your secure login credentials passed via Plaid or similar), identify recurring direct deposits and auto-debits, and generate prefilled change-of-bank forms to send to your employer and billers electronically. Free at participating banks; automates Steps 4, 5, and 6.

Should I switch banks if my bank is being acquired?

Not necessarily. Acquisitions auto-convert your account to the acquiring bank, and you typically receive new debit cards, checks, and online banking under the new brand. You can ride out the merger and see if you like the new bank, then switch later if not. Recent acquisitions to watch: Cadence Bank into Huntington Bank (mid-2026 conversion). If you decide to switch elsewhere, do so during the transition period (6 to 12 months) while both old and new brands are still operating.

Can I keep my old bank account for backup?

Yes. Many customers keep a small “backup” account at a previous bank for emergency cash, mortgage payment from a specific bank, or just convenience at that bank’s branches. Keep enough balance to avoid maintenance fees, use the debit card or write a check at least once every 6 to 12 months to keep the account active, and monitor for any unexpected activity.

What is the best time of year to switch banks?

Any time, but avoid switching around year-end / tax season if possible. Switching in December to early February creates complications around your 1099-INT (which arrives late January from the old bank) and your year-end direct deposit timing. Best times: early year (February to April after tax filing) or summer (June to August) when fewer recurring annual payments hit.

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