Yes, you can move to another bank, and the process is straightforward
You can switch banks at any time. There is no penalty for closing an account or moving your money elsewhere. The main work is telling your employer, billers, and anyone else who sends you money where your new account number is. Your old bank will close the account once you have moved everything out, or you can ask them to close it yourself.
The actual transfer of money takes a few days to a week, depending on how you move it. Direct transfers between banks are faster than writing checks or waiting for ACH payments to clear. The key is timing: if you have automatic payments set up, you need to update them before they try to hit your old account and bounce.
Key Takeaways
- You can close your current account and open a new one at any bank without penalty or waiting period.
- Moving money between banks takes three to five business days if you use an ACH transfer, or same-day if you withdraw cash and deposit it in person.
- You must update your direct deposit, automatic bill payments, and any recurring subscriptions before your old account closes, or payments will fail.
- Your old bank will hold your account open for a grace period after you stop using it, but you can ask them to close it immediately.
The fastest way to move your money
If you need to move money quickly, withdraw cash from your old bank and deposit it at the new one. This works the same day and avoids waiting for electronic transfers to clear. Bring your ID and the cash to either bank's branch or ATM.
If you want to move money electronically without leaving your house, use an ACH transfer. Log into your new bank's website, find the option to link an external account, and enter your old bank's routing number and your account number. The new bank will send two small test deposits to your old account (usually $0.01 to $0.99 each) to confirm you own it. Once you confirm those amounts, you can transfer up to your daily limit—often $10,000 or more, depending on the bank. The transfer takes three to five business days.
Some banks also let you transfer money by phone or through their mobile app. Call your new bank's customer service line and ask if they can initiate a transfer from your old account. You will need to provide your old account number and routing number, and answer security questions to prove you own both accounts.
Updating automatic payments before you switch
This is the step most people forget, and it causes the most problems. Before you close your old account, go through every automatic payment tied to it: payroll direct deposit, mortgage or rent, utilities, insurance, subscriptions, loan payments, and anything else that comes out automatically each month.
For each one, log into the biller's website or call them directly and update your bank account information. Do this at least one week before you plan to close your old account. If you miss one, the payment will bounce, and you may face a late fee or service interruption.
Direct deposit from your employer is especially important. Contact your HR or payroll department and submit a new direct deposit form with your new bank's routing number and your new account number. Payroll systems can take one to two pay cycles to update, so do this as soon as you open your new account.
What happens to checks and pending transactions
If you have written checks from your old account that have not cleared yet, those will still go through even after you close the account—as long as the check clears within six months. Your old bank will honor checks drawn on closed accounts for this period. After six months, uncashed checks become stale-dated and the bank will refuse to pay them.
Pending transactions—charges that show in your account but have not fully processed—will complete even if you close the account. The money will be deducted from your old account, not your new one. Check your old account's transaction history for a week or two after closing to make sure everything cleared as expected.
If you are worried about a check bouncing or a pending charge causing problems, keep your old account open for at least two weeks after you switch. Once you confirm all transactions have cleared, you can close it.
Closing your old account
You can close your account in person at a branch, by phone, or sometimes through the bank's website or app. Call your old bank's customer service number or visit a branch and ask to close the account. They will ask if you want to withdraw any remaining balance in cash or transfer it to your new bank. If there is money left, take it with you or ask them to transfer it.
Some banks charge a fee if you close an account within a certain period—often 90 days to six months. Check your account agreement or ask the bank before you open the account whether an early closure fee exists. If it does and you want to avoid it, wait out the period before closing.
After you close the account, the bank will send you a final statement showing all transactions up to the closing date. Keep this for your records. If you ever need to dispute a charge or prove a payment went through, you will need this statement.
What to do if a payment bounces after you switch
If a payment fails because it tried to hit your old account after you closed it, contact the biller immediately. Explain that you switched banks and the payment bounced. Most billers will resubmit the payment to your new account once you provide the updated information. Ask them to waive any late fees since the bounce was due to your account change, not a lack of funds.
If the biller is your mortgage lender, utility company, or loan servicer, call them right away. These companies can report late payments to credit bureaus, and even one missed payment can hurt your credit score. Getting them to resubmit and waive fees is worth a phone call.
For smaller billers like subscriptions or gyms, you may need to contact them through their website or app. Update your payment method there and ask if they can retry the failed charge. Most will do this automatically within a few days.
Moving to an online bank or a different type of account
If you are switching from a traditional bank to an online bank, or from a checking account to a savings account, the process is the same. You still need to move your money, update automatic payments, and close the old account. The only difference is that online banks do not have physical branches, so you cannot deposit cash in person. You will need to use mobile check deposit, ACH transfers, or wire transfers to move money in and out.
If you are opening a savings account at a different bank while keeping your checking account open, you do not need to close anything. Just open the new account and transfer money into it when you are ready. This is useful if you want to keep your checking account for bills and automatic payments while moving your emergency fund or savings to a bank with higher interest rates.
Frequently Asked Questions
How long does it take to switch banks completely?
Moving money takes three to five business days if you use an ACH transfer, or same-day if you withdraw cash. Updating all your automatic payments takes a few hours to a few days depending on how many billers you have. Plan for one to two weeks total to make sure everything clears and all payments update correctly.
Will I lose money or have a gap in service if I switch?
No, as long as you update your automatic payments before closing your old account. Keep both accounts open for at least two weeks so you can catch any payments that were missed. Once you confirm everything cleared, you can close the old account.
What if my new bank rejects my account application?
Banks use ChexSystems, a checking account history database, to screen applicants. If you have unpaid overdrafts or fraud disputes on record, a bank may deny you. Ask the bank why you were rejected and whether you can reapply after fixing the issue. Some banks specialize in second-chance accounts if you have a difficult history.
Can I keep my old account open after I switch?
Yes. You do not have to close your old account. Some people keep it open as a backup or to receive checks from sources they do not want to update. Just be aware that banks may charge monthly maintenance fees if you do not use the account or do not meet minimum balance requirements.
What if I forget to update a payment and it bounces?
Contact the biller immediately and provide your new account information. Ask them to resubmit the payment and waive any late fees. Most billers will do this, especially if it is your first missed payment. For credit-sensitive accounts like mortgages or loans, call within 24 hours to prevent a late report.