So you’re going to open a checking account online with a new bank that you feel good about. But all your payments — from streaming services, credit cards and memberships to a dozen others — are tied to your current account. Fortunately, switching over doesn’t mean you’ll break something or miss a payment.
You can make a seamless transition and stay current on all your bills by following seven simple steps.
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Make a list of your recurring transactions
Before opening a new checking account online, you can review your current account’s statements to note which payments have been coming out of it. After pulling up a few months’ worth of transaction history, you can build a list with three columns: merchant, amount and frequency.
Then sort your recurring items into groups:
- Direct deposits: paychecks, government benefits or pension payments
- Automatic bill payments: rent, utilities, insurance and loan payments
- Subscriptions: streaming services, gym memberships and other subscriptions
- Transfers: any payments to savings, investment accounts or family members
You may also want to note any sneakier annual or biannual charges that come out, such as auto insurance payments.
- Keep the old account active while opening the new one
Once your account is closed, so is your access to it. So it’s smart to keep your current account running as you’re opening the new one, especially if you use direct deposit (that switchover could take up to a few weeks to fully finalize). Plus, there are a few things to review after opening the new account and closing the current one, which we’ll address later.
- Open the new account after your largest payment posts
It’s a good idea to open your new checking account after all your largest payments, like rent or utilities, have gone through. A few days after you see the payments posted could be a good rule of thumb. Then, once you see that nothing is still pending, you can log on, open the new account and fund it.
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Redirect any direct deposits first
Before linking any bill payments to the new account, you can ask your employer or benefits provider what they need to update your direct deposit information — such as your new routing and account numbers. Once you submit the change, you can wait to confirm that the first deposit has arrived successfully. Making sure your new account has no funding issues may help lower your risk of missing a payment.
- Hook up your bills to the new account
Since your bills can’t find your new account on their own, you’ll have to point them there, one at a time. You can start with the highest-stakes payments on your list: rent or mortgage, utilities, insurance and loan payments. Then you can move subscriptions and update any card-on-file payments tied to your old debit account.
To be extra thorough, you may want to note the date you switched the payments over, what you switched and then save any confirmation emails.
A simple checklist may help:
- New bank account details added
- Old payment method removed, but only after the new one works
- Confirmation email saved or screenshot stored
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Keep a cushion in your old account
It can’t hurt to leave a little money in the old account while your switch is in progress. Think of it as a little cushion to catch any stray payments before they accidentally trigger an overdraft fee. You may also want to make sure that what’s there is enough to cover more than one old recurring payment.
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Confirm the new account and close the old one
When all the numbers point to a successful switchover, you can confirm that all is well with the new account by running through this quick confirmation list:
- At least one direct deposit landed in the new account
- Every major autopay ran successfully from the new account
- Scheduled transfers now pull from the new account
- No pending transactions remain in the old account
- All statements needed for taxes, payment proof or budgeting are downloaded
- Any remaining balance cushions have been transferred to the new account
Once you confirm everything is in place, you can contact the old bank to close the account.
A smoother switch starts with a plan
Switching banks can feel overwhelming without clear, simple steps to follow. But now you have a seven-step system that saves you from the biggest switchover glitches: closing the old account too soon and taking a smooth direct deposit transfer for granted. Rest assured your new checking account is well on its way to making all your payments on time.
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