1. Find and open an account
If you want to switch banks or cancel an account, you should definitely try to get a new account before you cancel. Banks typically review an account opening application before granting an account to a customer. Customers should plan at least five working days for this. Under certain circumstances, the bank can also reject an account application if the customer’s creditworthiness is not good enough. Once the bank has approved the opening application, the new customer will receive their documents by post within a few days. Credit and bank cards are sent separately with the access data for security reasons. With the first deposit, customers can use their new account immediately. First of all, however, it is advisable not to empty the old account completely, but to leave enough money there to be able to service outstanding debits in the transition phase.
Customers can easily find the ideal account via various comparison portals on the Internet, which display the conditions at a glance.
2. Inform about new account details
The user should immediately inform all persons and entities associated with his account. Recipients of standing orders and direct debits have the highest priority. In this context, the customer should create a list that takes into account all important recipients, such as: landlord, telephone/Internet provider, license fee, insurance, subscriptions, sports club and fitness studio. Thorough preparation when terminating an account can save you a few inconveniences. In order to get a complete overview, account users should study their last account statements carefully in order to avoid unnecessary reminder fees due to missed payments. An account transfer service by the bank does not always make sense, because a list of payees must be drawn up in any case. Users can also do this themselves without transmitting confidential data to the responsible bank. Once all payment recipients have been determined, the bank or account change can be communicated by telephone.
3. Recommendation: Two accounts for four months
To make sure there are no misunderstandings, you should keep both accounts side by side for at least two months. Experts even recommend a period of four months to ensure that direct debits are no longer debited from the old account. The exemption order should be adjusted to cover the interest paid on the old account. At the same time, you should plan the term for the application at the end of the year. In this way, you can have the full allowance for the new account again next year. To be on the safe side, the account user should save all account statements from their online mailbox. If you request bank statements at a later date, you have to reckon with considerable costs.
4. Cancel account
The account switch is only successfully completed when no more bookings are made and no more direct debits are made. Termination is now possible without giving reasons. An informal letter is sufficient. In the case of fixed-term deposit accounts, however, notice periods must be observed, otherwise an extended term or a significant interest discount must be expected. If all steps have been followed exactly, the old account can be closed.
Switching accounts is a lengthy process for which the user should be patient. The most important thing: only cancel the old account when all bookings are actually made via the new account.
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