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Switching Banks: What You Need to Know

Are you considering switching banks but unsure about the process? O1ne Mortgage is here to help. Whether you’re new to banking or have multiple accounts, the time it takes to switch banks can vary. It could be a matter of hours or stretch out to a month, depending on your specific situation.

How Long Does It Take to Switch Banks?

The duration of switching banks depends on how you define the process. If it’s just about opening a new account, it can be quick. However, if it involves transferring bills set to autopay and ordering paper checks, it might take longer. Think of it like moving into a new home; even with the keys in hand, the actual move takes time.

Here are some timelines to consider:

• Opening a new bank account: A few minutes to a few days. While it’s generally fast, issues like outstanding overdrafts might delay the process.
• Transferring money: One to five business days. This depends on the banks involved and whether the transfer is domestic or international.
• Closing your old account: Up to 30 days. Keep some money in the old account for a few weeks to cover any forgotten transactions.

Will Switching Banks Hurt Your Credit Score?

Switching banks itself won’t affect your credit score. However, if you owe money to your old bank and it goes to collections, that could impact your credit. It’s the debt, not the switch, that could cause a drop in your credit score.

How to Switch Banks

Switching banks is straightforward. Follow these steps:

1. Research banks: Compare different banks and their accounts to find the best fit for your needs.
2. Open the new account: Visit a branch or apply online.
3. Transfer direct deposits: Move your direct deposits to the new account.
4. Update automatic payments: Switch your automatic payments to the new bank.
5. Settle into your new account: Link your new checking account to your savings or retirement accounts.
6. Close the old account: After a few weeks, close your old account, ensuring all transactions have cleared.

The Bottom Line

Opening a new bank account is quick, but fully switching can take time, especially if you have many financial transactions. If you’re unhappy with your current bank, making the switch is worth it. The good news is that it shouldn’t cost you money, just some time.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to assist you with confidence and expertise.

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