A direct comparison of large and small banks shows that switching accounts can almost always be worthwhile. However, the conditions with regard to interest rates, fees and ATM density are very different and can influence the choice of a bank.
Good reasons to switch
Switching accounts can pay off financially if the user has a regular income and is therefore actively using a new account. When opening a new account, attractive bonuses of over 100 euros can sometimes be collected. Account management fees are no longer so easy to avoid these days. Many direct banks offer free checking accounts without a minimum deposit, while credit cards and electronic bookings are often free. If the service is the reason for the account termination, you should choose a new bank that gives a good impression and whose conditions meet your criteria. The reason for switching accounts is often insufficient availability of ATMs. Many German credit institutions belong to one of the 4 large banking associations, so that you can also withdraw cash free of charge from foreign ATMs. Alternatively, some large direct banks issue a free credit card that customers can use to get money free of charge from almost all ATMs in Germany. If users often overdraw their account, they also know the problem with high overdraft interest, so it’s worth taking a look at the overdraft interest comparison. Banks with just under 6% overdraft interest can be found quickly.
Termination without reason
An account closure is possible at any time and without giving reasons. An informal letter of termination is sufficient if it is a checking or call money account. The termination of a fixed-term deposit account is linked to clearly defined terms, which can sometimes be several years. Banks usually offer a termination service that provides the necessary forms via the online banking menu.
A precise procedure is crucial when switching accounts. Otherwise, those willing to change risk an unnecessary transition phase without a bank account capable of trading.
Few banks without fees
In view of the poor interest rate situation, many banks have no choice but to increase the costs and fees for call money accounts. Even with standard services, the bills are sometimes heavily charged. In this context, the banks always refer to the zero interest rate policy of the ECB. There are still a number of checking accounts without fees, as various comparison calculators show. These are often direct banks that do not have their own branch network. But financial institutions that offer branches also currently have free checking accounts on offer.
Find the right bank
Finding a bank that comprehensively meets your own requirements depends heavily on your personal needs. In a classic branch bank you get extensive personal advice. But if online account management is not a problem, you can also choose a direct bank. With a direct bank, the customer can save a lot on fees, and the current account comparison on the Internet can also help.
Conclusion
Changing banks or closing a checking account can be a lengthy process that requires patience. Before termination, all direct debit and standing orders must be rebooked. The existing account should not be terminated until all bookings are made to the new account. In any case, you should keep a confirmation of the dissolution as proof. Then nothing can go wrong with an account change.
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