How to switch banks

Your bank account may have served you well in the past, but as your life changes, your bank may need to as well. Switching things up can mean lower fees or higher interest rates. You may also need to change banks after a move or when it's time to open an account with your significant other.

Whatever your reasons for making the change, here's how to switch banks and ensure a smooth transition.

When and how to choose a new bank or credit union

First things first, you need to decide which bank is right for you. Everything from the types of accounts available to the total fees can affect your decision. Consider these factors before making the change:

• Convenience: Some banks have more locations and ATMs than others. Even if you don't plan on visiting your bank in person often, having a branch that's convenient to your home or work can come in handy. The same is true for the number and location of ATMs.
• Account options and services: Will you need a checking account, savings account or both? Also consider other services, such as mortgages and other loan options, bill pay, direct deposit and credit cards.
• Fees: Ideally, the bank you choose won't charge monthly account maintenance fees. If it does, determine if they will give you an opportunity to waive those fees, such as by keeping your account balance over a minimum amount. Also keep an eye out for other fees, such as overdraft, ATM and minimum balance fees. The lower those are, the better.
• Interest rates: If you plan on using your new account to save for the future, the higher the interest rate, the harder your money will work for you. The interest rate offered may be less important if you're looking for a checking account or plan on using your account for everyday spending.
• Customer service: You want service with a smile, of course. But also pay attention to the options available for contacting someone when you need help. Can you call, text or chat online? The easier it is to reach someone, the better.
• Security: In an era of online and mobile banking, security matters. Find out what the bank does to protect your account.

Open your new account

Now that you've chosen your new bank, the next step is to open your account. You can usually do this in person, over the phone or online. Whichever option you use, you'll usually need to provide the following:

• A copy of your ID, such as your driver's license or passport
• Your Social Security number
• Address and proof of address, such as your lease, mortgage statement or utility bill
• Phone number
• Email address

You may also need to fund the account as soon as you open it. The amount of money you'll need varies by bank.

Set up online and mobile banking

Online and mobile banking puts your money at your fingertips, at any time of day or night. So that you can get immediate access to your account, it's best to set this up as soon as you open your account. If you're opening your account online, access to online banking will be practically automatic.

To get started with online or mobile banking with Citizens, you'll need to download the Citizens mobile app.* You'll also need to choose a password and may need to set up two-factor authentication using your mobile number or email address.

Update your direct deposits

When changing banks, its essential to update your direct deposit information to ensure your money continues to reach you. After you’ve opened a new account, here’s how you can make switch:

• Check with your employer. Reach out to your human resources department or payroll provider for guidance on updating your direct deposit. This is often done through an HR portal or by completing a direct deposit form.
• Simplify with Citizens. If you’ve opened a Citizens Account, you can complete the process online within minutes. Plus, enjoy the benefits of accessing your paycheck up to two days earlier¹ - totally free.

Update your automatic debits

Before you open a new account, review your last several bank statements. Make a list of all automatic deductions, such as your streaming subscriptions, utility bills, gym memberships and insurance payments. Keep in mind these could be recurring weekly, monthly, quarterly and annual payments.

Next, set up automatic payments from your new account at least two weeks before the next payment is due. Then, cancel or delete any online bill payments or subscriptions you had set up on your old bank account. If you have automatic payments being withdrawn by a third party, be sure to notify the payees that you are changing banks. You'll also want to ensure your new account has the required funds to make the payments to avoid an overdraft fee and that you are meeting any minimum balance requirements.

Stop using and close your old account

Now it's time to say goodbye to your old account.

Cancel automatic bill payments and stop writing checks, making ATM withdrawals and purchasing items with your debit card at least two weeks before you want to close the account. This will help prevent any payments from your old account after it has closed. This could lead to fees and the unintentional re-opening of your account. Additionally, review your current bank's policy on fees for inactivity to avoid incurring fees just as you're about to change banks.

Contact your former bank and let it know that you'd like to close your account. You may be able to do this online, or your bank may ask you to send in a signed letter.

If you have to send a letter, include your full name, address, phone number and account number on it. State that you're asking the bank to close you account and request that it send any remaining balance to your new bank account. Include the account and routing number for your new account, so your old bank can transfer your balance. In some cases, it may send you a check for the remaining balance. Be sure to sign the letter before you send it.

Finally, to protect your identity and reduce the risk of fraud, destroy your debit or ATM card and any remaining checks from your old account.

Switch to a bank that’s right for your needs

When you're switching banks, make sure you've chosen the right account for you — especially if it's been a while since you've evaluated your banking options.

When you're ready to open a checking account, we're here to help. Learn about all of our checking account options and how Citizens can help you reach your money goals.