How to change bank accounts in 4 easy steps

Changing bank accounts can be rewarding if you take advantage of the best deals out there.

Updating recurring payments and sharing your new bank details with others (like your employer) might seem like a pain initially, but you could be reaping the benefits in no time.

And did you know that switching your everyday and savings account to a new provider has become easier thanks to a government program. You can actually get your new bank to help you with the ‘moving’ process.

Below are some reasons to consider the hassle of switching bank accounts.

For starters, there’s no law that you must be with the same bank for the rest of your life. You don’t even have to file for a so-called divorce here. 

There are three good reasons why most people change bank accounts.

• Paying too much in fees
  

• Earning little to no interest
  

• Bad bank services.
  

Meanwhile, some of the best bank accounts offer features like no monthly fees, cash back on purchases and earn you interest–which is why it might be worth the switch.

Let’s look at the steps you can take.

As mentioned above, changing who you bank with doesn’t have to be a dreadful task. In four simple steps, you’ll be banking with a new provider in no time.

1. Search for a new bank account

The first step in any endeavour is research! It’s always good to compare bank accounts to find one that meets your needs. 

Some things to consider when investigating include:

• How frequently will money be deposited into the account
  
• Will the account become the one you use for everyday purchases?
  
• What sort of services does it provide? Savings accounts? Term deposits? Home loans?
  
• Does it have local ATM or branch access?
  
• Can you access it while overseas?
  
• Does it have any fees or requirements?
  

It helps to have a clear idea of what you want, to narrow your options. Once you know which provider to bank with, the next step is opening an account.

2. Open a new account

Typically opening a bank account requires you to provide personal details and proof of identity, like a passport, driver’s licence and Medicare card. 

Most banks allow you to open a new account online. However, if you prefer doing it in person double check that your bank of choice has physical branches nearby.

3. Change your regular payments

Once you open an account, the tedious part begins–changing your regular payments. Thanks to a nifty government law, you can ask your new bank to contact the businesses you have direct payment with. Your bank should be able to provide your new banking details.

Note: This sadly doesn’t include regular BPAY payments.

Next, you need to inform your employer of your new account details. Also, remember to go onto your medicare, super, and any government accounts to add your new banking information manually.

4. Close your old bank account

Once you’ve double checked that your direct payments and deposits are running smoothly from your new account, it's time to say goodbye to your old bank account.

If you’re still unsure which is a good bank to change to, then you’re in luck. Every year a team of judges at Mozo analyse which bank accounts and banks offer the best value products and services and crown them winners of the Mozo Experts Choice Awards. 

We have categories like Best Savings Accounts, Best Bank Accounts and Australia’s Best Banking, which might help narrow your search.

Alternatively, you can start comparing bank accounts below.