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2 mins Read | 1 Year Ago

7 Steps to Switch Banks Accounts in India | ICICI Bank

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Seven Steps to Switch a Bank Account in India

Money management is simpler with a Bank Account. However, switching banks may be prudent at times. If you’re trying to relocate to a new city, you might need to transfer your money to a new bank. A bank with lesser fees or higher interest rates, may be enough to convince you to switch.

Can you change banks easily? Yes, if you’re well-informed and meticulous in your approach. You must take a few steps to ensure a smooth transition, if you plan to open a new Bank Account and close your old one. Choose the best Savings Account for higher interest rates.

How to switch a Bank Account in India in seven simple steps

Follow these steps and switch Bank Accounts in India, easily:

  1. Evaluate your Reasons

  2. Changing banks can be beneficial, but you must know why you’d want to change, to get the maximum benefit from the move. If another bank offers better terms than the one you are currently with — like a higher interest rate, more ATMs near you, higher standards of customer service, reduced fees and so on — switching banks makes sense

  3. Find an Alternative Bank

    • Features and advantages that you require or desire, such as automatic bill payment or mobile check deposit facilities

    • Charges, fees and deductions for each bank

    • Digital access, as it is better to shift to the best Savings Account for sheer convenience

    • Access to Mobile and Online Banking services

    • Location of branches and ATMs

  4. Before switching banks, you must choose where to move your money. You have multiple options available at your disposal. However, it's useful to have a checklist when comparing banks, as there are many possibilities when opening a new account. The following factors can aid in your decision-making, when looking for a new bank:

  5. Compile a List of the Deposits and Payments that you make Automatically

  6. Managing your finances can be simplified by automated bill payments, direct deposits and regular transfers. Making sure that these are properly transferred to your new account/s as you change banks, is crucial. If your paychecks are still going to your old account for instance, or if you have an automated bill payment set-up for a closed account, you can face issues. Additionally, you'd have to switch banks for your direct deposit if you get periodic inflows, dividends or other interest payments

  7. Open a New Account with a Bank

  8. Your new account can be opened once you've decided on a bank. Many banks offer online account opening services, so switching banks may be simple. Instead, suppose you prefer a more personalised experience, you can create an account in person or over the phone

  9. Sign up for Mobile and Online Banking

  10. Now that you have a new Bank Account, you must be able to access it. This is the time to activate Online and Mobile Banking services, as these are often your only choices if you want to bank with an internet-first organisation. You may get Internet Banking set up with assistance from your bank or credit union. You should enrol before utilising this feature. Once you’re done, go to your bank's website, create a User ID and Password and log in to confirm your account.

    You can then download the mobile app for your new bank. The login information and password you use for Internet Banking, should also work for Mobile Banking. Depending on the bank, you should set up multi-factor authentication or confirm your account through e-mail or SMS, before using Online or Mobile Banking facilities

  11. Refresh your Automatic Deposits and Payments

  12. It involves an additional effort to move banks after your new account is opened. Transfer all of your automatic payments and deposits at this time. Check your list to stop any recurring deposit or other payments that you wish to close. For instance, when transferring banks, cancel a regular subscription to a streaming service that you no longer use. You can change your account details once you've decided what you’d want to transfer and what needs to be cancelled.

    Make direct deposits first. If your employer has set up direct deposit for government benefits or other payments, you will need to update your Bank Account information with each one, separately. Set a new date for automated bill payments. Through your new Bank Account, set up automatic bill payments or update your information with each biller, if you have automatic payments set up with them. Set up automatic transfers, recurring transfers such as deposits from Checking to Savings Account, between your new accounts

  13. Deactivate your Previous Bank Account

The final step is to close your account with your old bank. Depending on the bank, you can accomplish this in person, online or over the phone. Once you are confident that all of your automatic transactions have been moved to your new account, deactivate your previous Bank Account.

Make sure to request written confirmation when cancelling a Bank Account. Keep this handy if your previous bank permits a deposit or debit transaction that results in costs-to-proceed. Inquire about fees associated with terminating an account. Some banks charge a fee for cancelling an account within a specific time, after it has been opened.

Any remaining paper cheque that you may have for the old account, should be destroyed along with your Debit Card. Make sure that there are no lingering payments or deposits that need to be transferred, when you receive the final statement from your old bank.

These guidelines can help you confidently switch banks, avoid any issue along the way and resolve any that may arise. It helps to be prepared, whether you switch banks out of necessity or because it is financially advantageous. It's crucial to take the time to do extensive research before selecting the right bank for your circumstances. The more you comprehend the process, the easier can you move banks without feeling overwhelmed.

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