How Do I Switch Banks? A Simple 5-Step Guide

Your bank account is connected to so many parts of your everyday life, so the idea of changing banks can feel like one more thing you don’t have time to manage. But switching banks doesn’t have to happen all at once. With a little planning, you can move your banking relationship one step at a time to make sure everything is where it belongs.

Here's a simple five-step approach to help you switch to Carter Bank without the headache.
 

1. Open Your New Account

Start by opening your new Carter Bank account at least a week before you plan to move money. This gives you time to receive your new account and routing numbers as well as a new debit card. It’s a good idea to enroll in Online and Mobile Banking from the start so you can monitor your account as you make the transition.

Do not close your existing account yet. Keeping it open for at least 60 days during the transition — and keeping enough money in there to cover pending checks or auto-drafts — gives you time to confirm that everything has been successfully moved to your new account.
 

2. Move Your Direct Deposit

Next, move your paycheck or other recurring deposits to your new account. Your employer or other income provider, such as Social Security, state agencies, or investment firms, may have their own process for changing your direct deposit information. Typically, it can be done online as long as you have your new account and routing numbers handy.

If you’re worried about switching your direct deposit, make this one of your first priorities. Changes to direct deposit processing can take one to two pay cycles to take effect. This is another reason you should not rush to close your existing account.
 

3. Move Your Recurring Payments

Now, take a look at the bills and services that automatically draft money from your old account.
Think beyond your biggest monthly bills to smaller, recurring expenses or quarterly auto-drafts that may be tied to your existing account.

Examples might include:

• Mortgage or rent payments
• Homeowners’ association dues
• Utilities, phone, or internet
• Pest control services
• Landscaping services
• Cleaning services
• Child care or afterschool care
• Insurance (health, auto, home)
• Streaming or gaming services
• Memberships and subscriptions
• Credit card payments

Review several months of your old account statements to help identify payments you may have overlooked. Keep a list of each payment you move and the date you expect the first payment to come from your new account. That makes it easier to spot anything that still needs attention.
 

4. Move Your Automatic Transfers

Don’t forget about money that’s moving between your accounts. If you automatically transfer money into savings or another account, review your existing account statements for recurring transfers, then set up the appropriate transfers with your new Carter Bank account.
 

5. Close Your Old Account

Once you’ve moved your direct deposits, recurring payments, and automatic transfers, it’s time to make sure the transition is complete.

Before closing the old account:

• Confirm that your paycheck or other recurring deposits are arriving in your new account.
• Make sure your recurring bills are being paid out of the new account.
• Check that your automatic transfers are working as expected.
• Review your old account for outstanding checks or pending transactions.
• Move any remaining funds out of the old account into the new one.
• Save any statements or records you may need in the future.

Once you’re confident everything has made the move, you can close your old account according to that financial institution’s process. The exact timing will vary from person to person, but give yourself at least 60 days (or 90, to be safe) to ensure that everything has made the transition.

Carter Bank Gives You an Easier Way to Switch

According to a Consumer Reports survey of checking account holders who considered switching banks but didn’t follow through, 63% said concerns about transferring their automatic payments and deposits to a new account kept them from switching.

Carter Bank’s eSwitch to Carter takes the trouble out of transferring your direct deposits and recurring transfers into your new Carter Bank account. All you have to do is:

1. Contact Carter Bank to enroll and receive your SwitchTRACK activation code.
2. Enter your activation code or use the activation email you receive.
3. Log in, choose the Direct Deposit or Recurring Payments option, enter your information and submit.

You can track the progress through an online dashboard while the changes are being processed. It’s like an easy button for switching banks.

Switching Banks Can Be a Fresh Start

Changing banks presents a natural opportunity to ask yourself a bigger question: Is the way I’m managing my money still working for me? After all, when you change banks, you’re not just moving money. You’re moving the systems and habits that help you manage your financial life.

Carter Bank’s Financial Wellness Self-Assessment can help you look at where you are financially with fresh perspective. It’s a self-scoring tool designed to help you identify areas you may want to focus on moving forward.