How to switch banks

If you want to switch your transaction account to a different bank, make sure that you are moving for the right reasons. You should take the following into consideration before you start the process:

Rates and fees of the new bank versus your old bank – being savvy can help prevent excessive fees and charges.

Location of bank branches/ATMs to meet your needs – having conveniently located ATMs and local branches that are easily accessible are an important aspect of customer service.

Additional benefits on offer from both banks – each bank and account type has different benefits and you should evaluate your needs and choose a bank with features to suit your requirements.

You should always remember the following when switching your transaction bank account:

  • Provide your Employer with your new bank details so your salary can be paid into the correct account.
  • Ensure that all the transaction originators have updated banking details for your debit orders and other transactions to prevent unpaid debit orders on your old bank account.
  • Ensure your new bank includes those once-a-year debit or stop orders by providing complete switching instructions.

Switching your transaction bank account from your old bank to the new bank is easy if you follow these three steps:

Step 1 – Open a New Account

Before you are able to transfer your transactions to your new bank you need to open a new account.

When you open your new account, your bank will provide you with the following information and assistance:

  • The terms and conditions applicable to your new account.
  • Standard fees, charges and interest rates that apply to your new account.
  • Contact information for further assistance in switching your account.

Once you have opened a new account, give your new bank the relevant information so that they can transfer debit orders, arrange new stop orders and if necessary, load your payment beneficiaries. After you give your new bank a signed debit order or salary redirect form, your new bank may inform existing debit order originators of your new account details. However, You may still have to confirm this with the originators.

Step 2 – Switch Transactions

Request the following information from your old bank, which they are required to provide within 10 business days:

  • Your last 3 months’ bank statements.
  • A list of all current stop orders loaded on your account.
  • A list of all current beneficiaries loaded on your account.
  • Details of any supplementary or linked cards or accounts which may be affected by closing your account and switching banks.

After you have supplied bank statements, stop orders, beneficiaries and supplementary details to your new bank and your new bank has loaded the relevant details you can close your old account.

Step 3 – Close Your Old Account

Once you have opened your new account and switched transactions, ask your old bank to close your transaction account. Switching banks can take time and it is recommended that you keep the old account open for at least 6 weeks to identify and switch all transactions before closing your old account. It is a good idea to keep funds in the old account to cover any transactions which may be delayed when switching. When you close your account ask your old bank to transfer any remaining funds to your new account.

 

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