Bank Account Switch Kit: A Practical Guide to Changing Financial Institutions

When it’s time to switch to a new financial institution, you don’t need to panic. With a few of these well-placed tips you’ll be ready to tackle it without a hitch.

Tip 1: Open the new account before you close the old one

  • You’ll want to be sure to have both accounts open while you switch everything from one account to the other.
  • Be sure to find out what sorts of “inactivity” or “low balance” fees are associated with your account. You don’t want to get dinged with unexpected fees.

Tip 2: Make a list of all of your monthly payments

Nowadays so many of our payments are set up on autopay. To help you avoid missing a payment, consider the following:

  • Make a list of all of the different automatic payments that you’ll need to switch over to the new account.
  • Look back at your monthly statements and highlight any payment that is a recurring or automatic payment.
  • Remember, some payments might be set up with the vendor or service provider. You might, for example, have your phone bill getting pulled directly from your checking account or credit card.
  • Extra Tip: Think of any other services that you may have tied to your checking account or credit card, such as Venmo, Target card, PayPal, and such.

Tip 3: Set up your payments on autopay at your new financial institution

One of the easiest ways to save time each month is to set up all of your payments on autopay. At Deseret First, we offer FREE Bill Pay to every single member.

Tip 4: Move your direct deposit so that it funds into the new account

When you are ready to move over your direct deposit into the new account, be sure that there are still enough funds in the existing account to cover any outstanding payments, such as a check that you may have mailed, or an automatic payment you are yet to cancel.

Tip 5: Get an overdraft line of credit

An overdraft line of credit is a safeguard for over-drawing your checking account, and is one of the best ways to protect your credit.

  • Will help you avoid missing a payment during your transition.
  • You only pay interest if you have a balance on the overdraft.
  • Can help you avoid automatic payment declines, bounced checks, and being denied purchases at the register.