The basic steps to move money from one bank to another

Moving money between banks involves three separate things: closing or leaving your old account, moving your paycheck and automatic payments to the new bank, and transferring any balance you want to keep. You do not have to do all three at once, and doing them in the wrong order can leave you without access to money or unable to receive deposits.

The safest approach is to open the new account first, set up your direct deposits and bill payments there, wait a full pay cycle to confirm everything works, and only then close the old account. This way you have a working account the whole time. If you close first and something goes wrong with the new bank's setup, you could miss a paycheck or have bills bounce.

The actual money transfer—moving a balance from one bank to another—is separate from changing where your paycheck goes. You can transfer money when ready using a wire transfer or ACH transfer, or you can move it gradually by withdrawing cash or writing checks. The method you choose depends on how much money you are moving and how fast you need it there.

Key Takeaways

  • Open your new account before closing the old one, so you always have a working place for deposits and bill payments.
  • Update your paycheck direct deposit and automatic bill payments at your new bank, then wait one full pay cycle to confirm they work before closing the old account.
  • Transfer your balance using an ACH transfer (free, takes 1 to 3 business days), a wire transfer (fast, costs $15 to $30), or by withdrawing cash or writing checks.
  • Keep your old account open for at least 30 days after your last transaction clears, in case a check or payment bounces back.
  • Some banks charge a fee to close an account early; ask before you open whether there is a minimum time you must keep the account open.

How to set up your paycheck and bills at the new bank first

Before you move money or close anything, you need your new bank's routing number and your new account number. You can find these on a check from the new account, or call the bank and ask. Write them down—you will need them multiple times.

Contact your employer's payroll department or the person who handles your paycheck and give them your new routing number and account number. Ask them to confirm the change in writing or send you a confirmation email. Do not assume it is done until you see that confirmation. The same applies to any automatic bill payments: log into each biller's website (your utility company, insurance company, loan servicer, etc.) and update your bank account information there, or call them and ask them to do it.

After you have made all the changes, wait for your next paycheck to arrive at the new bank. This is the critical step most people skip. If something went wrong with the setup, you will find out now while your old account is still open and you can fix it. If you closed the old account first and the paycheck does not arrive, you have a much bigger problem.

Moving your balance: ACH transfer, wire transfer, or cash

Once your paycheck is going to the new bank and your bills are set up there, you can move whatever balance you want to keep. The method depends on how much money and how fast you need it.

ACH transfer is the slowest but free option. You log into your new bank's website, select "transfer from another bank," enter your old bank's routing number and your old account number, and request the amount you want to move. The money takes 1 to 3 business days to arrive. Most banks let you transfer up to $10,000 per day this way, though the limit varies. This is the right choice if you have time and do not want to pay a fee.

Wire transfer is faster but costs money. You go into your new bank in person or call them, give them your old bank's routing number and your old account number, and request a wire. The money usually arrives the same business day or the next morning. Wire transfers typically cost $15 to $30 depending on the bank. Use this if you need the money quickly and the fee is worth it to you.

Cash or check is the slowest but gives you control. You withdraw cash from your old bank and deposit it at the new one, or you write a check to yourself from the old account and deposit it at the new one. Checks take 3 to 5 business days to clear. This method works if you are moving a small amount and do not mind the time.

When and how to close your old account

Close your old account only after your paycheck has arrived at the new bank and you have confirmed that at least one automatic bill payment went through correctly. This usually takes 2 to 4 weeks depending on your pay schedule.

Call your old bank and tell them you want to close the account. They will ask if you have any outstanding checks or automatic payments still pending. Tell them the truth—you have already moved those, but be prepared to wait a few more days if they ask. Some banks require you to wait until all pending transactions clear before they will close the account. Ask whether there is a fee for closing early; some banks charge $25 to $50 if you close within a certain period (often 90 days).

After you close, ask the bank to send you a written confirmation that the account is closed. Keep this for your records. Do not throw away your old debit card or checks when ready—wait at least 30 days in case something bounces back and the bank needs to contact you.

What to do if something goes wrong during the transfer

If your paycheck does not arrive at the new bank on the expected date, contact your employer's payroll department when ready. They can confirm whether the direct deposit was actually set up and when it will process. If they say it was set up correctly, contact your new bank and ask them to trace the deposit. Do not wait—the longer you wait, the harder it is to find the money.

If an automatic bill payment bounces because you closed the old account too early, contact the biller right away and explain what happened. Most will not charge you a late fee if you can show that you set up the payment at the new bank and it was their system that was slow. Ask them to reprocess the payment from your new account.

If you initiated an ACH transfer and it has been more than 3 business days, log into your new bank and look for a "transfer status" page. If the transfer shows as pending or failed, call the bank when ready. If it shows as complete but the money is not in your account, the bank may have sent it to the wrong account number—this is rare but happens. The bank can trace it and recover it, but only if you report it quickly.

Fees and minimum balance requirements to watch for

Before you open a new account, ask whether there is a monthly maintenance fee and what the minimum balance is to avoid it. Some banks charge $10 to $15 per month if your balance drops below $500 or $1,000. If you are moving because your old bank charged too much, make sure the new one does not have the same problem.

Ask also whether there is a fee to close the account within a certain time period. Some banks charge $25 to $50 if you close within 90 days of opening. If you are planning to close your old account within 30 days, you might want to wait a few weeks before opening the new one, or choose a bank that does not have this fee.

Wire transfer fees vary by bank. Some charge $15, others charge $30 or more. Ask your new bank what they charge before you request a wire. ACH transfers are always free.

Frequently Asked Questions

Can I transfer money between banks on the weekend?

ACH transfers and wire transfers only process on business days (Monday through Friday, excluding federal holidays). If you request a transfer on Friday afternoon or over the weekend, it will not start processing until Monday. Wire transfers requested early on a business day usually arrive the same day; those requested after 2 p.m. may not arrive until the next day.

What if I still have checks from my old account after I close it?

Checks from a closed account will bounce if someone tries to cash them. If you have checks left over, either destroy them or wait until you are sure no one will try to use them. Some people keep the account open for 30 to 60 days after closing just to be safe, though the bank will not let you deposit new money into a closed account.

Do I need to tell the IRS or my employer that I changed banks?

No. Your employer only needs your new routing number and account number, which you give to payroll. The IRS does not track which bank you use. If you are expecting a tax refund, make sure your tax return has your new bank information before you file, or update it through the IRS website if you have already filed.

How long does it take to transfer money between banks?

ACH transfers take 1 to 3 business days. Wire transfers take a few hours to one business day. Cash or check deposits take 3 to 5 business days for the check to clear. The exact time depends on which banks are involved and what time of day you request the transfer.

What if my new bank asks for a minimum opening deposit?

Many banks require you to deposit at least $25 to $100 when you open an account. You can use money from your old account to meet this requirement, or deposit a check. Once the account is open, you can move the rest of your balance over using an ACH transfer or wire transfer.