Most banks now offer account switching services that move your direct deposits and automatic payments for you
When you open a new checking account, the bank can transfer your incoming and outgoing money without you manually updating every paycheck and bill. This service—sometimes called account switching or assisted switching—exists because switching banks used to mean weeks of phone calls, missed payments, and bounced checks. Today, the major routes are the Automated Clearing House (ACH) switching service offered by most banks, the Check 21 system for depositing old checks, and direct coordination between your old and new bank.
The catch is that switching services work best when both your old and new bank participate in the same system. If your old bank is small or regional, or if your new bank is an online-only operation, you may need to do some of the legwork yourself. But even then, the process is faster than it was ten years ago because banks now have standard ways to share account information.
Key Takeaways
- Most banks offer ACH switching services that automatically redirect your direct deposits and recurring bill payments to your new account.
- The switching process typically takes five to ten business days, though some banks can start moving money within two to three days.
- You will need your old account number and routing number to set up the switch, and your old bank cannot charge you a fee for providing this information.
- If your old bank does not participate in switching services, you can still deposit old checks through mobile deposit or have your employer reissue your paycheck to the new account.
- Some banks offer a "grace period" where they keep both accounts open during the switch so you do not miss any deposits or payments.
How ACH switching works and what your bank does behind the scenes
When you tell your new bank you want to switch, they collect your old account number, routing number, and a list of companies that send you money or take payments from your account. The new bank then contacts the ACH network—a system run by the Federal Reserve and Nacha that processes electronic transfers between banks—and instructs it to redirect those transactions to your new account.
Your old bank receives notice of the redirect and stops processing those transactions on your old account. At the same time, your new bank starts accepting them. The whole handoff usually takes five to ten business days, though some banks speed this up to two or three days if you call and ask them to prioritize your switch.
During the switching window, your old bank will not charge you overdraft fees if a transaction tries to post to an account that no longer accepts deposits. Federal law requires them to honor the redirect instead. This protection is one reason switching has become safer—banks are legally required to cooperate with the process.
What you need to provide to start the switch
Your new bank will ask for your old account number and routing number. You can find both on a check, on your old bank's website, or by calling the old bank directly. Your old bank cannot refuse to give you this information or charge you a fee for it—the Federal Reserve's Regulation E makes this a free service.
You will also need to list the companies and people who regularly send you money or take payments from your old account. This includes your employer (for direct deposit), the Social Security Administration (if you receive benefits), your mortgage lender, insurance companies, utility companies, subscription services, and anyone else with standing authorization to pull money from your account. The more complete this list, the fewer manual updates you will have to make later.
Some banks ask you to bring a recent statement from your old account to verify the list of transactions. Others let you upload a statement through their website or mobile app. A few will simply ask you to name the companies and let their system search for the accounts.
Timeline: when money stops going to your old account and starts going to your new one
The switching process does not happen all at once. Direct deposits and bill payments redirect on different schedules depending on how the companies process payments.
| Type of Transaction | Typical Timeline | What Happens |
|---|---|---|
| Direct deposit (paycheck, benefits) | 2–5 business days | Your employer or benefits agency receives the redirect notice and sends your next payment to the new account. |
| Automatic bill payments | 5–10 business days | Billers receive the redirect and pull from the new account on their next scheduled payment date. |
| Checks you wrote | Not redirected | Checks clear against your old account. You must keep it open until all checks have cleared, usually 30 days. |
| Transfers you initiated | Not redirected | You must update these manually or cancel them and restart them from the new account. |
The reason for the delay is that employers and billers do not receive the redirect instantly. They process payroll and payments on their own schedules—some weekly, some monthly, some on specific dates. Your new bank sends the redirect notice, but the company does not act on it until their next processing cycle.
This is why most banks recommend keeping your old account open for at least 30 days after you switch. Checks you wrote before the switch will still clear against the old account, and some billers may take longer than others to process the redirect.
What happens to checks and transfers you initiated yourself
Switching services only redirect money that other people or companies send to you or pull from your account. They do not redirect checks you wrote or transfers you started yourself.
Any check you wrote before switching will clear against your old account, even after you have moved to a new bank. This is why you should not close your old account immediately—you need to keep it open and funded until all outstanding checks have cleared. Most banks recommend waiting 30 days, though some suggest 60 days if you wrote a lot of checks.
If you initiated a transfer to another account (say, moving money to a savings account at a different bank), that transfer will not redirect. You will need to set up a new transfer from your new checking account, or contact the receiving bank to update the sending account information.
Banks that make switching faster and easier
Large national banks like Chase, Bank of America, Wells Fargo, and Citibank all offer ACH switching services and typically complete the process within five business days. They also tend to offer a "grace period" where they keep both accounts open during the switch so you do not miss any deposits.
Online banks like Ally, Charles Schwab, and Discover also offer switching services, though they may take slightly longer because they do not have branch staff to manually verify information. However, they often make up for this by offering higher interest rates on checking accounts, which can offset the slightly longer switching timeline.
Credit unions vary widely. Some large credit unions participate in ACH switching, while smaller ones may require you to do more of the work yourself. If your credit union does not offer switching, you can still move your money—it just means you will need to manually update your direct deposit and bill payments, which typically takes one to two weeks.
What to do if your old bank does not participate in switching services
If your old bank is very small or does not offer switching, you can still move your money, but you will need to do more of the work yourself. Start by contacting your employer's payroll department and asking them to reissue your next paycheck to your new account. Provide them with your new account number and routing number, and ask them to confirm receipt before your next pay date.
For bills and subscriptions, log into each company's website and update your payment method to your new account. This usually takes five minutes per company. Start with the bills that come out soonest—mortgage, rent, utilities, insurance—and work backward to subscriptions and smaller payments.
For checks you received but have not yet deposited, you can deposit them to your new account using mobile deposit (most banks offer this through their app). For checks you wrote, follow the same rule: keep your old account open until they all clear.
Frequently Asked Questions
Can I close my old account right after the switch is complete?
No. You should wait at least 30 days after switching, and ideally 60 days, because checks you wrote before the switch will still clear against your old account. If you close the account too early, those checks will bounce and you will face overdraft fees or a returned check fee. Ask your old bank when the last check cleared before you close the account.
What if a company does not redirect to my new account?
Some billers are slower to process redirects than others. If a payment does not show up in your new account within 10 business days of the switch, log into the company's website and update your payment method manually. You can also call the company and ask them to confirm they received the redirect notice from your old bank.
Do I have to keep a balance in my old account while it is still open?
You should keep enough money in your old account to cover any checks that are still clearing or any transactions that did not redirect. Most people keep $100 to $500 as a buffer. Once you are confident everything has moved over, you can withdraw the remaining balance and close the account.
Can my new bank charge me a fee for switching?
No. Federal law prohibits banks from charging you a fee to switch accounts or to receive your account information from your old bank. If a bank quotes you a switching fee, that is a sign to look for a different bank.
What if I switch banks and then realize I made a mistake?
You can reverse the switch by contacting your new bank and asking them to stop the redirect. However, this is complicated and may take several days. It is better to keep both accounts open for a full billing cycle (usually 30 days) before deciding whether to close your old account, so you can catch any problems before they become permanent.