Whether paying rent or receiving a salary, whether paying taxes or just making a phone call – nothing works without a bank, as almost all payment transactions are made via the current account. This usually works without problems. Nevertheless, there can be good reasons for changing the bank and thus the account. We’ll tell you what you need to know to ensure that the account switch goes smoothly.
There are a number of good reasons to close or change a bank account. Perhaps you are annoyed about an unexpected increase in fees, about savings interest that is too low or overdraft interest, or you are not satisfied with the basic service of the bank. A move can also be a reason to change your bank account, and of course the more favorable conditions of another bank can also be tempting. Many direct banks not only offer potential new customers a free checking account without a minimum deposit when they open an account. Some banks also offer a free credit card and a change bonus that can amount to up to 100 euros.
But regardless of the reason you want to cancel or switch, you should not rush into anything and proceed methodically. This is the only way to guarantee a smooth switch from the old to the new bank account. If you are unsure, you can obtain information about the procedure for changing an account in advance on the websites of Finanztip, Stiftung Warentest, Kontofinder or the Verbraucherzentrale. This also answers the two fundamental questions that many people who want to change ask themselves. Can I change my bank account at any time and what is the effort?
Can I close a checking account at any time?
“In principle yes,” is the answer. Because according to the law, you do not have to comply with a notice period, as known from internet or mobile phone providers, for example, when terminating a bank account. The bank is obliged to close the account within 30 days of receipt of the notice.
Is it difficult to switch bank accounts?
This question can be answered with a clear “no”. Nowadays, thanks to changes in the law, switching bank accounts is much easier than it was a few years ago. For example, you can use the so-called “statutory account switching assistance” that banks are obliged to provide. The bank must now inform all payment partners about the customer’s new account details. But beware: the “statutory account switching assistance” does not apply to cross-border account switching. So if the old bank or the new bank is not based in Germany. There is also no entitlement to “statutory account switching assistance” if the two accounts in question are not held in the same currency.
Of course, the “statutory account switching assistance” is not a must. Anyone who would like to take care of their personal matters personally is free to do so. There are two possibilities.
On the one hand, there is the digital exchange assistance that many banks offer, although this function can only be found after a search on some homepages. On the other hand, if you don’t want to use either the “statutory account switching assistance” or the digital switching assistance, you have to switch from one bank to the other on your own. Here, however, you should be aware that changing the account then requires a little diligence. Once you have made the final decision to terminate or change your bank account, you should now proceed step by step.
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Open a new account
This may seem a bit strange at first, like putting the horse before you. After all, you haven’t canceled the old account yet, so there are now two accounts under your name. With this first step, however, you not only avoid a transition phase without an active account and thus possibly even a financial bottleneck. This also eliminates the risk that a standing order, direct debit or other payment might be lost during the switching process and that you would then have to bear the reminder costs incurred.
Request/create list of payment partners
Using the new bank’s digital account switching service, you can now log into the existing account at the old bank. Here you get an overview of all bookings of the last three months, sorted according to direct debits, standing orders, further payments and incoming payments. As with any contract concluded in writing, you now also need a signature here. This can be created digitally so that the new bank can sign and send the letter to your payment partner. Some of the websites mentioned above offer a sample letter or form for changing the bank details. Please note, however, that standing orders must be canceled by the old bank and placed with the new bank.
Regular payments, which are made half-yearly or even all year long, also require personal contribution. You have to find this out from your account statements. And online providers and service providers, such as Amazon, PayPal or Klarna, must also inform you of the change of account. Most of the websites mentioned above offer a sample letter that you can use to inform the relevant payment partner about the change in your bank details for download.
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Cancel the old bank account and switch to the new one
Now use the list you have created to check carefully whether you have entered all payment partners and whether they have also confirmed the new account details for you. If there is no confirmation, you should personally assure yourself with the respective company that your new account details have been received there. Once all payment partners have finally confirmed, you can now start canceling your old account.
If you change your bank account, let the old account run parallel to the new one for two or three months. In this way you avoid that you may have overlooked a standing order or a direct debit recipient and have to pay any reminder fees. In any case, you should also leave a remaining balance in the account for any fees from the old bank.
After this period has expired, you can permanently terminate the old account. The best way to do this is to use one of the sample letters available online. In this letter, do not forget to ask for the transfer of your remaining balance and for confirmation of your cancellation.
Finally, you send the cancellation online or by fax to your old bank. If you want to be on the safe side, cancel by registered mail.