Whether you’re moving to a new city, your current bank doesn’t keep up with new technologies, or you’re tired of bank fees, there are multiple reasons why you would want to switch banks. Below, SoFi will guide you through transferring to a new bank and show you how easy it is to change.
Why Would I Switch?
The fees traditional banks charge alone are enough to drive people to seek out a different bank. Not only that, but when you have insufficient funds in your account, the bank charges a fee, which takes even more money out of your account that you don’t have. You would also need to switch banks when moving to a new location if your current bank closes or for multiple other reasons.
Steps To Transferring Banks
With SoFi, we make it easy to open up a bank account with us and transfer everything over. If you’re still wondering, “How do I switch banks?”.
Step One: Choose A New Bank
If you’ve done your homework about SoFi’s online banking options, you’re probably excited to learn that we have no overdraft, minimum balance, or account fees. So you probably chose us already and are going, “how do I switch banks?”
Step Two: Open An Account
Opening up a free checking account with SoFi is easy. You need to sign up, prove your identity, decide on an account type, fill out an application, make a deposit, and download the app.
Step Three: Pause Automatic Payments and Direct Deposits
On the bank account, you want to switch from, you want to pause or transfer any automatic payments or direct deposits that deduct funds from your bank account. For example, if you have direct deposits from work, you may have to visit HR and give them the new account information.
Step Four: Wait for Pending Transactions
Before closing out your old account, you need to wait for pending transactions to clear. You don’t want to close your old account only to finally have an old payment go through and not be able to pay it. Instead, keep enough money in the account to cover pending transactions and then wait up to a month for any automatic payments before closing the account.
Step Five: Transfer Funds
While you’re waiting for pending transactions on your old account, transfer any funds not needed to cover the pending transactions over to your new account. You may have to visit your bank in person to do this, but you will need your new account information.
Step Six: Close Old Bank Account
Once all pending transactions have gone through, you can now close out your old bank account. Traditional banks don’t typically offer a way to do this online or over the phone, so you will need to revisit your old bank. Don’t forget to request written confirmation that you have closed the account and save that confirmation letter in a safe place for future reference.
Finding the right place to keep your money is the difference between a constant headache and banking without a hassle. So if you’re ready for a new way of banking, learn more about opening an online bank account with SoFi Invest Savings and Checking.