The fastest way to switch banks without losing access to your money
Moving your money to a new bank takes between three and five business days if you use an ACH transfer (the standard electronic method), or one to two business days if you use a wire transfer (faster but costs $15 to $50). The slowest route—writing a check and depositing it—can take up to two weeks. Most people use ACH because it is free and reliable, though it moves money slower than a wire.
The real work is not moving the money itself; it is closing or maintaining your old account and setting up automatic payments at the new bank. If you move money but forget to update your employer's direct deposit or your bill payments, your paychecks and bills will still go to the old account, and you will have to move money manually every month.
Key Takeaways
- ACH transfers are free and take three to five business days; wire transfers are faster (one to two days) but cost $15 to $50.
- Before you move money, update your employer's direct deposit, bill payments, and any automatic transfers to point to your new account.
- You can transfer money yourself using your new bank's online portal, or ask your old bank to initiate the transfer on your behalf.
- Keep your old account open for at least two weeks after the transfer clears, in case a payment bounces back or a check clears late.
- If you have a mortgage, car loan, or credit card with automatic payments, contact each lender separately to update your payment method.
How to initiate an ACH transfer from your old bank to your new one
Log into your new bank's online banking portal or mobile app and look for a link labeled "Transfer Money," "Move Money," or "External Transfers." You will need your old bank's routing number (a nine-digit code that identifies the bank) and your old account number. Both appear on the bottom left of any check you have from that account, or you can call your old bank and ask.
Enter the amount you want to transfer and confirm. Your new bank will send an electronic request to your old bank, which processes it overnight or the next business day. The money then moves through the Federal Reserve's ACH network, which typically takes two to three more business days. You will see the money in your new account once it arrives; your old bank will deduct it at the same time.
If your new bank does not offer external transfers online, call their customer service line and ask them to initiate the transfer over the phone. You will need to provide the same routing and account numbers, plus your Social Security number for verification.
Using a wire transfer when you need the money faster
A wire transfer moves money in one to two business days instead of three to five, but costs between $15 and $50 depending on your bank. Call your old bank and tell them you want to wire money to your new account. They will ask for your new bank's routing number, your new account number, and the amount. Write down the confirmation number they give you.
Your old bank will deduct the money immediately and send it through the wire network (usually FEDWIRE or SWIFT). Your new bank receives it within one to two business days and deposits it into your account. Wire transfers are irreversible once sent, so confirm all account numbers before you authorize the transfer.
Use a wire transfer only if you need the money urgently—for example, if you are closing on a house or need to cover an overdraft at your new bank. For routine account switching, ACH is free and reliable enough.
Updating your direct deposit and automatic payments before you transfer
This step prevents money from going to the wrong account after you switch. Contact your employer's payroll or HR department and ask them to change your direct deposit to your new bank account. Provide them with your new routing number and account number. Most employers can make this change within one payroll cycle, though some take up to two weeks.
For bills you pay automatically—utilities, insurance, subscriptions, loan payments—log into each company's website or call them and update your payment method to your new account. Do this before you close your old account. If you miss one and a payment tries to post to your old account after it is closed, the payment will bounce and you may face a late fee.
For payments you make manually (like a mortgage or credit card bill), update your bank account information in your online banking portal at the new bank before you make the next payment. Some lenders allow you to change your payment account online; others require a phone call.
What to do with your old account after the transfer
Do not close your old account immediately after the transfer clears. Keep it open for at least two weeks. Checks you wrote before the transfer may still be clearing, and if they bounce because the account is closed, you will face overdraft fees and the check will be returned to whoever you paid. Automatic payments you missed updating may also try to post during this window.
After two weeks with no activity, you can close the account. Call your old bank or visit a branch and ask to close it. They will confirm the balance is zero (or ask what to do with any remaining money) and close it on the spot. Ask for written confirmation of the closure.
If your old bank charges a monthly maintenance fee, ask them to waive it for the final month since you are closing the account. Some banks will; others will not. Either way, closing the account stops future fees.
What happens if a transfer fails or takes longer than expected
ACH transfers occasionally fail if you enter the wrong routing number or account number. Your new bank will reject the transfer and send the money back to your old account within one to two business days. Check your old account to confirm the money returned, then try again with the correct numbers.
If a transfer is delayed beyond five business days, contact your new bank's customer service. They can look up the transfer using the confirmation number and tell you where it is in the system. Delays usually happen during holidays or when the Federal Reserve is processing a high volume of transfers. Provide your new bank with your old bank's name and routing number so they can trace it.
If money disappears and neither bank can find it, file a dispute with your new bank within 60 days of the transfer date. Provide the confirmation number, the amount, and the date you initiated it. Your new bank will investigate and either locate the transfer or credit your account if it was lost in the system.
Moving money between your own accounts at different banks
If you are transferring money between accounts you already own at two different banks (rather than switching banks entirely), the process is the same: use ACH or wire transfer. Log into your new bank account and initiate an external transfer using the old bank's routing number and your account number there.
This is useful if you want to keep both accounts open—for example, maintaining a savings account at one bank and a checking account at another. The transfer works the same way and takes the same amount of time.
Frequently Asked Questions
Can I transfer money if I have a negative balance at my old bank?
No. Your old bank will reject any transfer request if your account is overdrawn. Deposit enough money to cover the overdraft first, then initiate the transfer. If you cannot deposit money, contact your old bank about a payment plan for the overdraft before you close the account.
What if my new bank asks me to verify the transfer with a small deposit?
Some banks send two small deposits (usually under $1 each) to your old account to verify you own it. Check your old account for these deposits, then log into your new bank and enter the amounts to confirm ownership. This is a security step and is normal. It adds one to two business days to the process.
Do I need to tell my old bank I am closing my account?
No, but it is a good idea. Call them before you close it and ask if there are any pending transactions or holds on the account. This prevents surprises when you try to close it. Some banks will also ask why you are leaving, which helps them improve their service.
Can I transfer money if I have a joint account?
Yes, but both account holders must authorize the transfer if your bank requires it. Check your account agreement or call your bank to confirm. If you are closing a joint account, both owners should be present or provide written consent.
What if a check I wrote clears after I close my old account?
The check will bounce and the recipient will be notified. You will face a returned-check fee from your old bank (usually $25 to $35), and the recipient may charge you a fee as well. This is why you should wait at least two weeks before closing your old account—to catch any checks that are still in the system.