Yes, you can switch savings accounts at any time
You can move your money from one savings account to another whenever you want. There is no law stopping you, no penalty for leaving, and no requirement to stay with your current bank. The process takes a few days to a few weeks depending on how you move the money and which banks are involved.
The main decision is whether to close your old account or keep it open. Closing it is simpler if you are done with that bank entirely. Keeping it open makes sense if you want to maintain a relationship with that institution or if you have automatic deposits or payments tied to it.
Key Takeaways
- You can switch savings accounts without penalty at any time, and most banks will not charge you to close an account.
- The fastest way to move money is to transfer it yourself through online banking or by visiting a branch in person.
- If you want the new bank to pull money from your old account, that process usually takes three to five business days.
- Before closing your old account, check that all automatic deposits and payments have been redirected to your new account.
- Some banks offer incentives to open new accounts, but read the fine print to understand any minimum balance or direct deposit requirements.
The three ways to move your money
The fastest method is to transfer money yourself. Log into your old bank's website or app, find the transfer option, and send money to your new account. If both banks are connected through the same network (most major banks are), the money arrives the same day or within one business day. You can do this in minutes from your phone.
The second method is to ask your new bank to pull the money for you. You give the new bank your old account number and routing number, and they request the transfer on your behalf. This takes three to five business days because the banks have to verify the request and process it through the clearing system. This method works well if you want to move a large balance and do not want to do it yourself.
The third method is to visit a branch in person. If you have a local branch of your new bank nearby, you can deposit a check or wire the money directly. Wires arrive the same day if you do it before the bank's cutoff time (usually 2 p.m. or 3 p.m.). Checks take one to three business days to clear. This method costs money — most banks charge $15 to $30 per wire — so it is best for urgent situations only.
What to do before you close your old account
Check for any automatic deposits going into the old account. This includes paychecks, government payments like Social Security or tax refunds, insurance payouts, or pension deposits. Contact your employer, the government agency, or the payer and ask them to redirect future payments to your new account. This usually takes one to two pay periods to take effect, so do it well before you close the old account.
Look for any automatic payments or bill payments set up on the old account. These include utilities, insurance, loan payments, subscriptions, or any other regular charges. Update each one to pull from your new account instead. If you miss one, the payment will bounce and you may face late fees or service interruptions.
Leave the old account open for at least one full billing cycle after you have moved everything over. This gives you time to catch any payments or deposits you forgot about. Once you are confident nothing else is coming in or going out, you can close it.
Closing your old account
Call the bank or visit a branch to close the account. Most banks will not charge you to close a savings account. Some checking accounts have early closure fees if you close them within a certain period (often 90 days to six months), but savings accounts rarely do. Ask before you close to make sure there is no fee.
The bank will ask what you want to do with any remaining balance. If there is money left, they will either transfer it to another account at that bank or send you a check. If there is a negative balance (you owe the bank money), you will need to pay it before they close the account. This can happen if fees were charged after you moved your money out.
Request written confirmation that the account is closed. This protects you if the bank makes a mistake or if you need proof later that the account no longer exists. Keep this confirmation for your records.
What happens if you keep your old account open
You can leave your old savings account open even after you have moved your money to a new bank. This is useful if you have direct deposits or payments you want to keep coming to that account, or if you want to maintain a relationship with that bank for other reasons.
Be aware that if you do not use the account, the bank may charge monthly maintenance fees. Some banks waive these fees if you keep a minimum balance (often $500 to $1,000) or if you set up a direct deposit. Read your account agreement or call the bank to find out what the fee is and whether you can avoid it.
If you leave an account inactive for a very long time (usually five to seven years), the bank may declare it abandoned and turn the money over to your state's unclaimed property program. You can still recover the money, but you will have to file a claim with the state. It is simpler to either close the account or keep it active by making a small deposit or withdrawal once a year.
Moving money between banks at different institutions
If your old bank and new bank do not have a direct connection, transfers take longer. You may need to use a third-party service like ACH (Automated Clearing House), which is the standard system banks use to move money electronically. ACH transfers typically take three to five business days.
Some banks offer faster options like Zelle or wire transfers, but these usually have limits on how much you can send at once. Zelle transfers are often capped at $500 to $2,000 per transaction. Wire transfers are faster (same day) but cost $15 to $30 per wire.
If you are moving a very large amount of money, ask your bank about the fastest and cheapest way to do it. Some banks will waive wire fees if you are opening a new account with them, or they may offer other options you are not aware of.
Bank incentives for opening a new account
Many banks offer cash bonuses or higher interest rates to attract new customers. These offers might range from $50 to $500 depending on the bank and the type of account. Before you open an account based on an incentive, read the fine print carefully.
Most incentive offers come with conditions. You may need to set up a direct deposit of a certain amount, keep a minimum balance for a set period, or make a certain number of transactions. If you do not meet these conditions, you will not get the bonus and may be charged fees instead. Make sure the conditions are something you can actually do before you open the account.
Frequently Asked Questions
Will my bank charge me a fee to close my savings account?
Most banks do not charge to close a savings account. Some checking accounts have early closure fees if you close them within 90 days to six months of opening, but savings accounts rarely do. Call your bank or check your account agreement to be sure before you close.
How long does it take to transfer money between two banks?
If you transfer the money yourself through online banking, it usually arrives the same day or within one business day. If you ask your new bank to pull the money, it takes three to five business days. Wire transfers arrive the same day but cost $15 to $30.
What happens to my old account number after I close it?
Your old account number becomes inactive and cannot be used. If someone tries to deposit money to that account after it is closed, the deposit will bounce back. This is why it is important to update all automatic deposits and payments before you close the account.
Can I switch banks if I have a negative balance?
You will need to pay off the negative balance before the bank will close the account. You can transfer money from your new account back to the old one to cover it, then close the account once the balance is zero.
Do I need to close my old account, or can I just stop using it?
You can do either. If you close it, the bank stops charging fees and you do not have to worry about it. If you leave it open, make sure you understand any monthly maintenance fees and whether you need to keep a minimum balance to avoid them. Inactive accounts may eventually be turned over to your state as unclaimed property.