In this article:
If you're planning to switch banks, you may be wondering how long it will take. The answer is: It varies. Making the leap from one financial institution to another is a process that can stretch out from a few hours to a month or more, depending on how much there is to be done and how carefully you make the change.
If you're new to banking, you can probably make the switch pretty quickly, but if you have several accounts and you've been collecting paychecks and paying bills for a while, it may take a few weeks before you feel settled into your new checking and savings accounts.
How Long Does It Take to Switch Banks?
Opening accounts at a new bank may take only a few minutes, but moving your funds, switching your direct deposits, ordering paper checks and rerouting any automatic bill payments can take a month or more. Here's how long you can typically expect the various steps to take.
- Opening a new bank account: A few minutes or a few days. Opening a bank account can usually be done in minutes, especially if you apply online, but it may take a few days for your new bank to review your application and address any issues. For instance, you might be asked to pay any outstanding overdrafts from your old bank first.
- Transferring money from one account to another: One to five business days. Transferring money between banks can often be done in one business day or less. But it also may take longer depending on how the banks operate and whether this is a transfer between domestic or international banks.
- Updating direct deposits and automatic payments: Up to 45 days. Depending on your bank and employer, you may be able to switch your direct deposit immediately. In most cases, however, it takes one to two pay cycles for the money to go to your new account.
- Closing out your old account: Up to 30 days. Even if you finish transferring automatic withdrawals and direct deposits from the old bank to the new one in a day, don't close the old account until you're sure all checks have cleared and your automated payments and direct deposits have been rerouted.
Will Switching Banks Hurt Your Credit Score?
Switching banks will not hurt your credit score. Bank accounts don't affect your credit. How you use the bank account, however, could affect your credit score.
For instance, if you switch banks and owe the old bank money, and if that bank has trouble collecting its money, it could send your debt to collections. The collection account could appear on your credit report, and would likely result in a credit score drop. But in that case, it's the act of owing money to your old bank that hurts your credit score—not having made the switch to a new bank.
How to Switch Banks
Switching bank accounts is a pretty straightforward process. You'll want to do the following:
- Research banks. Spend some time comparing banks and bank accounts, and determine what advantages or disadvantages banks you're considering might have over the bank you currently use. It's enough of a hassle to change banks that you wouldn't want to rush into working with another bank that doesn't offer the features and services you want.
- Open the new bank account. Go to the bank's nearest brick-and-mortar branch and request to open an account or use the bank's website or app to fill out an online application.
- Remember your direct deposits. Move any of your direct deposits to the new bank account.
- Make a list of automatic payments. You'll need to switch your automatic payments from your old bank to the new one. This is probably the longest part of the process of switching banks.
- Settle into your new bank account. For instance, link your new checking account to your savings or retirement accounts, so you can continue to save money for an emergency fund or your retirement.
- Close out your old bank account. Wait a few weeks after opening your new one and consider leaving a little money in the account, in case there are any charges you've forgotten about that may come through.
The Bottom Line
It doesn't take much time to open up a new bank account, but it can take a while to actually switch bank accounts. The good news is that, unless your new bank charges maintenance fees, it shouldn't cost you money to switch banks, just a little time.
If you're thinking about opening a new checking account, the Experian Smart Money™ Digital Checking Account & Debit Card can help you build credit without debt by automatically linking to Experian Boost®ø®ø, which gives you credit for eligible bill payments after three months of payments. You'll also pay no monthly fees¶ for Experian Smart Money, have access to more than 55,000 fee-free ATMs worldwide** and could receive your paychecks up to two days early when you enroll in direct deposit†. You can get an Experian Smart Money Account through a free or paid Experian membership, which also gives you access to your FICO® Score☉ Θ, Experian credit report and more. See terms at experian.com/legal.