Yes, you can transfer your business account to another bank, but the process takes planning and the timeline depends on what you're moving
You can move a business checking account, savings account, or both to a different bank. The bank you're leaving doesn't prevent transfers — they're required by law to cooperate. What takes time is moving the money itself and updating where your deposits and payments go. A full transfer usually takes two to four weeks, though some pieces move faster than others.
The speed depends on what you're transferring. Moving cash balances can happen in days. Redirecting payroll, vendor payments, and customer deposits takes longer because you have to notify each one separately, and some may take time to process the change. If you have a business line of credit or loan with your current bank, that doesn't move — you'll need to handle it separately or pay it off.
Key Takeaways
- You can transfer money between your old and new business accounts yourself, or request an ACH transfer from your new bank, which usually takes three to five business days.
- Updating automatic payments and deposits is your responsibility — your old bank won't do this for you, and missing a change can cause late fees or missed revenue.
- Business loans, lines of credit, and merchant services stay with your current bank unless you pay them off or refinance them elsewhere.
- Keeping both accounts open for at least two weeks after the switch catches any payments or deposits that arrive late at the old account.
- Notify the IRS, state tax agencies, and payroll providers of your new account details before you close the old one.
Moving money from your old account to your new one
You have two main ways to move the balance. The fastest is to transfer the money yourself using online banking — most business accounts let you move funds between banks in the same day or by the next business day. Log into your old bank's system, find the transfer or bill pay section, and enter your new bank's routing number and your new account number. The money usually arrives within 24 hours.
The second way is to ask your new bank to pull the money for you using an ACH transfer. This is free and takes three to five business days. Your new bank will ask for your old account number and routing number, then request the funds from your old bank. This method works well if you want a record that the new bank initiated the move, though it's slower.
Do not close your old account immediately after the transfer. Keep it open for at least two weeks. Checks you wrote, automatic payments set up with the old account, or deposits customers sent to the old account number will still arrive, and you need somewhere for them to land.
Updating automatic payments and deposits
This is where most business owners run into trouble. Your old bank will not automatically redirect payments or deposits to your new account. You have to tell each vendor, customer, and service provider about the change yourself.
Start with the ones that move money regularly: payroll processor, tax payment service, insurance company, utilities, loan payments, and any subscription services. Log into each account or call and update your banking information. Ask for written confirmation that the change went through. Some providers take one or two pay cycles to process the update, so plan ahead if you're switching banks before payroll is due.
For customer payments, update your invoices, website, and email signature with your new account details. If customers pay by ACH or wire transfer, send them the new routing number and account number. If you use a payment processor like Square or PayPal, update your connected bank account there — funds will go to the new account going forward.
Check your old account for at least 30 days after the switch. If a payment arrives at the old account by mistake, you can transfer it manually or ask your old bank to forward it. After 30 days, most banks will return payments to the sender, which can cause late fees or service interruptions.
What doesn't move with your account
Business loans, lines of credit, and equipment financing stay with your current bank. You cannot transfer a loan to another bank — the loan agreement is between you and that specific lender. If you want to move the loan, you have to refinance it with the new bank, which means applying for a new loan and using the proceeds to pay off the old one. This takes two to four weeks and may involve a credit check.
Merchant services (the ability to accept credit and debit cards) are separate from your bank account. If your current bank provides this service, you'll need to set it up with your new bank or switch to a different processor. The new setup usually takes three to five business days.
Cashier's checks, certified checks, and other bank-issued documents tied to your old account become invalid once you close it. Order any you need before closing, or ask your old bank to issue them from the old account after you've switched.
Notifying government agencies and tax services
The IRS, your state tax agency, and your state's business registration office need your new account information if you have automatic tax payments or refunds set up. For federal taxes, update your account details through the IRS Business Services Online portal or call the IRS at 800-829-1040. For state taxes, log into your state's tax portal or contact the state revenue department directly.
If you have a business license or permit that lists your bank account, check whether you need to file an update. Most states don't require this, but some do. Call your state's business licensing office to confirm.
If you receive government payments — such as contracts, grants, or unemployment insurance — notify the paying agency of your new account. Government payments can take weeks to process, and sending them to a closed account causes delays. Update your information at least two weeks before you plan to close the old account.
Timing for closing your old account
Wait at least two to four weeks after your last transaction before closing the old account. This gives time for checks, ACH transfers, and other payments to clear. Some businesses wait 60 days to be safe, especially if they have many customers or vendors paying by check.
Before you close, print or download your last three months of statements from the old account. You'll need these for tax records and to reconcile any payments that arrived late. Ask your old bank whether they'll keep statements available online after closure — some banks delete them after 90 days.
Call your old bank to close the account. Do not just stop using it. Ask whether there's a fee for early closure (some business accounts charge this) and confirm that any pending transactions will clear before the account closes. Get written confirmation of the closure date.
What to do if a payment goes to the wrong account
If a customer or vendor sends money to your old account after you've closed it, the bank will return it to the sender. This can take one to two weeks. The sender will then have to resubmit the payment to your new account, which delays your receipt of the money.
To prevent this, send a final notice to all regular payers at least one week before you close the old account. Include your new routing number and account number. For customers who pay by check, include a note on your invoice saying "Please make checks payable to [Business Name] at [New Bank Name]."
If you receive a payment at the old account after closure, contact your old bank and ask whether they can forward it to your new bank. Some banks will do this as a courtesy, though it's not may provide. Otherwise, ask the sender to resubmit to your new account.
Frequently Asked Questions
How long does it take to move a business account to another bank?
Moving the money itself takes one to five business days depending on the method. Updating all your automatic payments and deposits takes two to four weeks. Plan for the full process to take a month from start to finish, especially if you have many vendors or customers paying you.
Will my business credit be affected if I switch banks?
No. Switching banks does not affect your business credit score. Your credit is tied to loans and lines of credit, not to which bank holds your checking account. If you refinance a loan to move it to the new bank, that will show up on your credit report, but the switch itself will not.
Can I keep both accounts open after I switch?
Yes. Many business owners keep the old account open for 30 to 60 days to catch late payments and deposits, then close it. You can keep both open indefinitely if you want, though you'll pay monthly fees on both. Most people close the old account once they're confident all regular payments have been redirected.
What if my payroll processor won't accept my new bank account information?
Contact your payroll processor's customer service and ask them to update your account. Provide your new routing number and account number. If they say they can't change it, ask whether you can set up a new payroll account with the new bank information. Most processors allow this without interrupting payroll. Plan this change at least one pay cycle in advance.
Do I need to notify my business insurance company about the bank change?
Only if your insurance company withdraws premiums directly from your bank account. Log into your insurance account or call and update your banking information. If you don't update it, the payment may fail and your coverage could lapse. Do this before you close the old account.