The basic steps to move your money and accounts to a new bank
Switching banks means closing or transferring accounts at your current bank and opening new ones elsewhere. The process takes two to four weeks if you move everything at once, or longer if you move accounts one at a time. You do not have to close your old account immediately — many people keep it open for a month or two to catch any payments still coming through the old routing number.
The safest approach is to open the new account first, set up your direct deposits and automatic payments there, wait for a few paychecks to confirm everything works, then close the old account. This way you avoid the risk of missing a deposit or having a payment bounce because the account is already closed.
If you have a mortgage, car loan, or other debt with automatic payments, contact each lender separately to update your bank details. Do not assume that changing your bank account will automatically update their records — it will not. The same applies to any subscription services, insurance payments, or regular bills that come out of your checking account.
Key Takeaways
- Open your new account before closing the old one, and wait at least two weeks for all automatic payments and deposits to switch over successfully.
- Contact your employer, lenders, and any service providers directly to give them your new routing number and account number — do not assume the change happens automatically.
- Keep your old account open for at least one month after the switch to catch any payments that were still set up on the old routing number.
- If you receive Social Security, veterans benefits, or other government payments, update your bank information through the agency's website or by phone, not through your bank.
- Check your old account for at least 30 days after closing it to make sure no unexpected charges or deposits appear.
Updating direct deposits and automatic payments
Direct deposits — paychecks, tax refunds, government benefits — require you to give your employer or the paying agency your new routing number and account number. Your new bank will provide both when you open the account. The routing number is a nine-digit code that identifies your bank; the account number identifies your specific account.
For paychecks, log into your employer's payroll system or contact human resources and ask them to update your banking information. Most employers can make the change within one or two pay periods. For government payments like Social Security, unemployment, or tax refunds, go to the agency's website directly — the Social Security Administration has a tool at ssa.gov, the IRS has one at irs.gov, and most state unemployment offices have online portals. Do not call your bank and ask them to update this information; the bank cannot do it on your behalf.
For automatic bill payments — utilities, insurance, loan payments, subscriptions — you have two options. You can contact each company and give them your new account details, or you can set up the payments from your new bank's bill-pay system. The bill-pay route is often faster because you control the timing and can see all your payments in one place. Most banks offer bill pay for free or for a small monthly fee.
What happens to checks and old account numbers
If you still have checks from your old account, they will not work after you close that account. Stop using them immediately once you switch banks. Deposit any remaining checks into your new account if they are payable to you, or destroy them. If someone sends you a check written to your old account after you have closed it, you can still deposit it into your new account — the routing number on the check tells the bank where to pull the money from, and it will work as long as the account exists.
Your old account number becomes inactive once you close the account, but the bank keeps a record of it. If a payment somehow tries to go through the old account after closure, it will bounce and the sender will get a notice. This is why it matters to contact everyone who has your old account number before you close the account — to prevent bounces in the first place.
Closing your old account safely
Wait at least 30 days after your last deposit or payment clears before closing your old account. During this waiting period, monitor the account for any unexpected activity. If you see a charge or deposit you do not recognize, contact your old bank immediately to investigate.
When you are ready to close, call your old bank or visit a branch in person. Ask the bank to confirm that all automatic payments have been moved or cancelled, and ask them to send you a final statement showing the account is closed with a zero balance. Keep this statement for your records. If there is any remaining balance, the bank will either transfer it to your new account or issue a check — ask which one they will do.
Some banks charge a fee for closing an account within a certain timeframe (often 90 days to six months of opening it). Check your account agreement or call and ask before you open the account, so you know whether this applies to you.
Moving money from your old account to your new one
You can transfer money between your old and new accounts in several ways. The fastest is an internal transfer if both accounts are at the same bank — this happens instantly or within one business day. If the banks are different, you can use an ACH transfer (Automated Clearing House), which takes one to three business days and is free. You can also write yourself a check, deposit it into the new account, and wait for it to clear — this takes three to five business days.
Some banks let you initiate a transfer through their website or app. Others require you to call or visit a branch. Ask your new bank what methods they support. If you are moving a large amount of money, ask whether there are any daily or monthly transfer limits — some banks cap how much you can move electronically in a single day.
Special situations: joint accounts, savings accounts, and credit unions
If you have a joint account, both account holders usually need to be present to close it, or you may need written authorization from the other person. Check with your bank about their specific policy. If you are switching because of a relationship change, make sure you understand what happens to the joint account — some banks will convert it to a single-name account if one person requests it, while others require closure and reopening.
Savings accounts and money market accounts follow the same switching process as checking accounts, but they may have different rules about early closure or minimum balances. If you have a certificate of deposit (CD), closing it early usually means paying a penalty. Calculate whether the penalty is worth paying, or consider leaving the CD at your old bank until it matures.
If you are switching from a credit union to a bank or vice versa, the process is identical — you still need to update direct deposits, automatic payments, and close the old account after a waiting period. Credit unions sometimes offer better rates or lower fees, so compare what you are paying at your current bank before you switch.
What to do if a payment bounces or a deposit is missed
If a payment bounces because it tried to go through your closed old account, contact the company that sent the payment immediately. Explain that you switched banks and provide your new account information. Ask them to resubmit the payment to your new account. Most companies will do this at no charge if you contact them quickly.
If you miss a deposit because it went to your old account after you closed it, contact the paying agency or employer right away. For paychecks, ask your employer to reissue the check or initiate a new direct deposit to your new account. For government payments, call the agency directly — Social Security, the IRS, and state unemployment offices all have phone lines to report missing payments and request reissue.
If your old bank account is closed and a payment tries to go through, you will not be charged an overdraft fee — the payment will simply be rejected. However, the company sending the payment may charge you a fee for the failed transaction. This is another reason to contact everyone with your old account number before you close the account.
Frequently Asked Questions
How long does it take to switch banks completely?
If you move everything at once — direct deposits, automatic payments, and all your money — the process takes two to four weeks. This accounts for time to open the new account, update all your payment sources, and wait for deposits and payments to clear on the new account before closing the old one. If you move accounts one at a time, it can take longer.
Do I have to close my old account right away?
No. You can keep your old account open for one to three months after switching to catch any payments that were still set up on the old routing number. Once you are confident everything has moved over, close it. Some banks charge monthly fees, so keeping an old account open costs money — weigh that against the risk of missing a payment.
What if I forget to update my direct deposit before I close my old account?
If a deposit goes to your closed account, the bank will reject it and send it back to the paying agency. Contact your employer or the agency immediately and provide your new account information. They will reissue the payment to your new account, which usually takes one to two weeks. This is why keeping your old account open for a month or two is safer than closing it immediately.
Can I switch banks if I have an overdraft or negative balance?
You can open a new account at any time, but your old bank may not let you close the account until the negative balance is paid off. Contact your old bank and ask what you owe, then pay it before closing. Once the balance is zero, you can close the account.
Will switching banks affect my credit score?
No. Switching banks does not appear on your credit report and does not affect your credit score. Banks do not report account closures to credit bureaus. However, if you bounce a check or fail to pay a bill because of a missed payment during the switch, that can affect your credit — which is why updating all your payment sources before closing your old account matters.