What Do I Need To Consider When Changing Bank Accounts?

Switching bank accounts can be a long, arduous task, but it doesn’t have to be overwhelming if you approach it with the right knowledge and prep work. Whether you're looking for better interest rates on your savings account, lower fees, or just a more useful banking service for your lifestyle, understanding the process and what to consider can make your change smooth and hassle-free.

Why Would I Need To Change Bank Accounts?

There are several reasons why you might want to look at changing bank accounts:

Better Terms: You may find another bank offering higher interest rates on savings or lower fees for checking accounts- our GLOSS Vault app can help you with this by showing you the highest interest savings account for your area in just 60 seconds.

Better Services: Perhaps you need access to more ATMs closer to home, better mobile banking features, or customer service that suits your needs.

Moving Location: Moving to a new city or country may mean you need to switch to a bank with broader geographic coverage or international services.

Work Travel: If you take regular work trips to different countries you may want a bank that doesn’t charge you extra for paying in a different currency.

Combining Your Accounts: You might want to place each of your accounts into one for easier management and access to your money.

What Do I Need To Consider Before Switching?

Services and Features

Account Fees: It’s best to check if there are monthly fees for maintaining a checking or savings account. Some accounts waive fees if you maintain a minimum balance or meet other requirements.

Overdraft Fees: Get a good understanding of how much the bank charges if you overdraw your account. Look for options like overdraft protection or linking accounts to minimise fees.

ATM Fees: Review the bank's policy on ATM fees. Some banks reimburse fees charged by other ATMs, while others have a network of fee-free ATMs.

Other Charges: Be aware of fees for services like wire transfers, paper statements, account closures, and returned checks. These fees can add up if you use these services regularly.

Interest Rates

Savings Account Rates: Compare the annual percentage yield (APY) offered on savings accounts. A higher APY means your savings grow faster over time.

Fees And Charges

Mobile Banking Apps: Look at how the bank's mobile app works for you as you’re going to be the one using it to access your money! Some of the key features to test would be bill pay, account alerts, and the ease of usability.

Online Bill Pay: Check if online bill pay is offered for free and how easy it is to schedule and manage payments.

Customer Support: With the growth of internet and phone banking fast, consistent and useful customer support has become more important than ever for banks. It’s good to check the availability of customer service options, including phone support, online chat, and branch availability if you feel your situation would be solved best in person.

Minimum Balance Requirements

Fee Avoidance: Understand the minimum balance required to avoid monthly maintenance fees. Ensure it marries up with your standard account balance to avoid unnecessary extra fees.

Accessibility

ATMs: Research the bank's ATM network to see if there are fee-free options or if the bank gives back fees charged by other ATMs.

Branch Locations: If in-person banking is important to you, check where the bank’s branches are in relation to where you live.

Convenience: Consider how easy it is to access your accounts and perform transactions, whether through ATMs, branches, online banking, or mobile apps.

Customer Reviews

Online Feedback: Read reviews on websites like Trustpilot, Yelp, or the bank's website. Current customer reviews are the best way to see consistent positives and negatives with the banks you are looking into.

Word of Mouth: Ask friends, family, or people at work about their experiences with the banks you're considering. Referrals can provide great insights into the quality of service and support.

What Are The Steps I Need To Take To Change My Bank Account?

Research: Research potential banks using comparison websites or directly on their websites to understand what they are offering.

Choose Your New Bank: Select a bank that best meets your needs based on all of the factors we have mentioned throughout this piece.

Open Your New Account: Visit a branch or apply online. Have your identification like your passport or driving license ready to show.

Transfer Automatic Payments: Update any automatic payments or direct deposits with your new account details to avoid disruptions.

Close Your Old Account: Once all transactions have cleared, transfer the remaining balance to your new account and close your old account.

Monitor Your Accounts: Keep an eye on both your old and new accounts for any unexpected transactions during the transition period.

Summary

Changing bank accounts can improve the money you earn just on your savings each month as well as improve practicality for your unique situation. By carefully considering fees, interest rates, services, and the transition process, you can ensure a seamless switch. Always research your options thoroughly and plan ahead to minimise any inconvenience.

By considering these steps and considerations, you’ll be well on your way to making the best decision for you when changing bank accounts.

Here at the GLOSS Vault, we have made it our mission to help as many people like you across Australia and New Zealand feel in control of your money and ensure you’re getting the most out of it. To find out more about us and what we do click here. If you’d like to see our app in action for yourself head here!