Bank Switch Kits, nowadays, are a common tool that banks offer. They breakdown and itemize the process of changing or switching banks, so that the transition can be as smooth as possible. A Switch Kit is not a single program you run that automatically transfers you from your old bank to a new one. These kits usually include instructions and online forms needed for applications. The Switch Kit’s main goal is to facilitate and help make your next bank transfer easier and seamless. Switch kits are usually conveniently accessible on banks’ websites directly. You will need, however, to print these forms and get them to the appropriate parties. They usually consist of the following steps.
4 Steps in making a Bank Switch
Setting up an account with your new bank
- Visit the bank’s website and fill out the online application form
- Check and note all charges and minimum deposits needed to open a new account
Create a Checklist of Automatic Debits and Credits
- Make sure all checks are cleared on your old checking account
- List all automatic charges like bills and mortgages made to your old bank account
- Leave enough funds in your old account to cover for charges you might encounter while transferring
- Note all payments and credits made to your former bank
Transfer all Automatic Debits and Credits to your new bank account
- Send dated and signed letters to anyone processing an automatic charge to your account
- Notify and signify your intention of accepting charges to your new bank account and give specific timelines
- Inform any company or entities that channel funds to your account of your new banking information
Closing your old bank account
- Check to make sure that you have cleared any outstanding balances with your old bank
- Visit your bank to formalize you intent of closing your account
- Online banks who conduct all transactions online may require you to supply them with security questions to verify your request and eliminates the need for travel
Online banks have certainly made banking more convenient and faster. Switching banks in the past was complicated and required frequent trips from one bank to another. Bank Switch Kits have made bank change transactions easier and faster. Although closing and opening accounts with most banks still require some amount of paperwork.
Making the Move
This year has seen a great number of bank failures and bankruptcies. This has left a huge number of depositors in the dark. Although most of the banks are FDIC backed the mere inconvenience of going through the process is troubling enough.
Bank Switch Kits is just another new feature that banks have introduced to make your banking experience an easier one. But the most important decision on which bank and type of account to open is still entirely up to you.