Skip Nav
Budget Tips
7 Genius Ways to Save Money at Bed Bath & Beyond
Harry Potter
66 DIY Harry Potter Halloween Costumes For the Wizards at Heart
Self Improvement
44 Quote Tattoos That Will Change Your Life

How to Leave Banks

How to Break Up With Your Bank

We're thrilled to present this smart Kiplinger story here on Savvy!

You’re ready to move on. But you may have signed up for direct deposits and scheduled automatic withdrawals. That makes switching banks more complicated. Take these steps to help make the transition smooth and painless.

To start, open your new account. You’ll need the account number and the bank routing number to transfer automated transactions.

Make a list of your direct deposits and automatic withdrawals. These could include paychecks, Social Security and pension checks, and monthly payments from a mutual fund. Don’t forget to include accounts, such as Treasury Direct, that deposit funds periodically. Contact each provider to find out what you need to do to transfer the payment and how long it will take for the change to take effect. Then go through the same process for all your automatic withdrawals, making sure no debits occur before your direct deposits take effect.

Print out records. If you bank online, download and print any important transactions — checks to the IRS, for example, or your final mortgage or student-loan payment. Download and save your e-statements.

Read on for more on how to break up with your bank.

Consider outstanding loans. If you’re getting a discount on your car loan or mortgage because you have multiple accounts at your current bank, see if your new bank will match it.

Close your old account. Once you’re certain all checks have cleared — you may want to wait a couple of weeks to be sure — you’re ready to pull the plug. You may cancel your account at a bank branch, by mail, or over the phone, and you can ask the bank for cash or to cut you a check. Be sure to get a letter confirming that the account has been closed.

Here are some smart stories from Kiplinger:

Seven Best Free Money Apps

QUIZ: Will It Sink Your Credit Score?

How to Get a Better Deal at Your Bank

Image Source: Thinkstock
Around The Web
Join The Conversation
DIY Coffee Pot Terrarium
Twisted Updo For Short Hair
Why I Won't Go on a Diet | Essay
Slow-Cooker "Baked" Potatoes
Guava Lime Tequila Cocktail Recipe
Banana Split Dump Cake Recipe
Half-Up Bun For Short Hair

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Career & Money