Switching banks is straightforward if you move your direct deposits and automatic payments first, then close the old account after confirming the new one works
The actual switching process takes about a week, but the planning takes longer. You need to redirect incoming money (paychecks, benefits, transfers) to your new bank, move outgoing money (bills, subscriptions) to the new account, and wait long enough to confirm nothing bounced before closing the old account. Most banks will not close your account when ready if you ask—they will give you time to catch stragglers.
The biggest mistake is closing the old account too fast. Money sometimes takes 3 to 5 business days to move between banks, and a bill payment that failed at the old bank will not automatically retry at the new one. You end up with a late fee and a damaged payment history.
Key Takeaways
- Change your direct deposits and automatic bill payments before closing your old account, not after.
- Keep the old account open for at least two weeks after the last deposit hits the new account, in case a payment bounces back.
- If you have checks printed with the old account number, stop using them when ready or they will bounce.
- Some banks offer a switching service that moves recurring payments for you, but you still need to verify each one worked.
- Closing the old account does not hurt your credit score, but a bounced bill payment will.
Step 1: Open the new account and confirm it is active
Open the new account at least one week before you plan to move money. The bank will give you a routing number and account number on the same day, but the account itself may take 24 hours to fully set up in their system. You need it active before you can receive direct deposits or set up bill payments.
Ask the bank whether they offer a switching service. Some larger banks (Chase, Bank of America, Wells Fargo, and others) have tools that let you upload a list of your recurring payments, and they contact those companies to move the payments for you. This is not automatic—you still have to verify each one—but it saves you from calling 15 companies individually. Smaller banks and credit unions usually do not offer this, so be prepared to make calls.
Step 2: Redirect your paychecks and regular deposits
Contact your employer's payroll department or log into your payroll portal and update your direct deposit information. You will need your new bank's routing number and your new account number. This change usually takes effect on the next pay cycle, which could be one to three weeks away depending on when your employer processes payroll.
If you receive regular deposits from other sources—Social Security, disability benefits, unemployment, child support, or regular transfers from another person—update those too. Each source has its own process. Social Security and disability benefits go through the Social Security Administration's website or by phone. Unemployment is handled by your state's labor department. For regular transfers from friends or family, ask them to update your account number in their bank's system.
Step 3: Move automatic bill payments and subscriptions
Make a list of every company that charges your old account automatically. This includes utilities, insurance, phone, internet, streaming services, gym memberships, loan payments, credit card payments, and any other recurring charge. Check your old bank's website under "Transfers" or "Bill Pay" to see what is set up there, and check your email for confirmation messages from the past few months.
For each company, log into their website or call them and update your payment method to your new account. Some companies let you do this online in seconds. Others require a phone call. A few will ask for a voided check from your new account to verify the routing and account numbers—you can get this by ordering checks from your new bank or by asking the bank to print one for you at a branch.
If you use your bank's bill pay service (where the bank sends a check or electronic payment on your behalf), you will need to set up new payees in your new bank's system. This is separate from updating companies directly. Some people use both—they pay utilities directly through the utility company's website, but pay other bills through their bank's bill pay service. Make sure you know which method you use for each bill.
Step 4: Wait for deposits to confirm the new account is receiving money
Once your first paycheck or regular deposit hits the new account, you know the routing and account numbers are correct and the account is working. This is your signal that it is safe to close the old account. Do not close it yet—wait at least one more week to make sure no bill payments bounce back to the old account.
During this waiting period, log into your new account regularly and confirm that deposits are landing and that any bill payments you moved are going through on schedule. If a payment fails, you will usually see a notification from the company (late notice, declined payment alert) or from your bank. Fix it when ready by calling the company or updating the payment method.
Step 5: Close the old account after confirming everything moved
After at least two weeks have passed since your last deposit hit the old account, and you have confirmed that all recurring payments are working at the new bank, call the old bank and ask to close the account. Some banks let you do this online, but calling is safer because you can ask the representative to confirm the account balance is zero and to note in your file that you requested the closure.
Ask the bank to send you a final statement showing the account is closed. Keep this for your records. If a company tries to charge the old account after closure, the charge will bounce, and you will get a notice. At that point, you know you missed updating that company, and you can contact them to fix it.
Do not throw away your old debit card when ready. Keep it for a few weeks in case you need to verify the old account number for something. Once you are confident everything has moved, you can destroy it.
What to do if you have checks printed with the old account number
Stop using old checks when ready. A check with the wrong account number will bounce, and the person or company you gave it to will incur a fee. If you have already written checks that have not been cashed, contact the recipient and ask them to destroy the check or wait for a replacement.
Order new checks from your new bank or from a third-party printer like Deluxe or Costco. New checks usually arrive within 5 to 10 business days. If you need checks urgently, some banks can print a few at a branch while you wait, though the selection may be limited.
Frequently Asked Questions
Will switching banks hurt my credit score?
No. Closing a bank account does not appear on your credit report and does not affect your credit score. However, if a bill payment bounces because you did not update the payment method in time, that late payment will be reported and will hurt your score. The key is moving payments before closing the old account.
What if I forget to update a company and they charge the old account after I close it?
The charge will bounce, and the company will send you a notice. Contact them when ready with your new account information and ask them to retry the charge. Most companies will waive the late fee if you update the account within a few days. If they do not, you can dispute the fee with the company's customer service.
Can the bank refuse to close my account?
No. You can close a bank account at any time for any reason. However, if the account has a negative balance (you owe the bank money), they may require you to pay that before closing. If the account is frozen due to fraud or legal action, the bank will explain why and what you need to do to unfreeze it.
How long does it take to switch banks completely?
The active switching process takes about one week, but the safe timeline is two to three weeks. This accounts for payroll processing delays, bill payment cycles, and time to confirm everything is working before you close the old account. If you are in a hurry, you can move faster, but you risk missing a payment.
Do I need to update my account information with my employer if I switch banks?
Yes. You need to update your direct deposit information with your employer's payroll department so your paychecks go to the new account. This is separate from switching banks—it is a change you make through your employer, not through the bank.