It can be much more complicated these days to close a checking account than it was just a few years ago. If you're not careful, you could inadvertently trip yourself into a world of financial hurt. The following tips can help you avoid unnecessary hassles.
1. First things first. Before you call it quits with your current bank, get your account up and running at your new bank.
2. Are you moving? If you're headed to another part of the country, start the process of setting up your new account at least one month in advance. This will increase your chances of having checks and a debit card waiting for you at your new location, and it should provide ample time to work out any unexpected kinks.
3. Get some balance. Take the time to balance your old checkbook carefully. Be sure all your outstanding checks have cleared.
4. Reroute your direct deposits. Contact your employer and arrange to have direct deposits of paychecks and benefits sent to your new account. Keep your old bank account active until you're sure all deposits are going to the right place.
5. Remember all automatic deductions. This step can be more time-consuming than you might think. It can involve contacting both your old bank and every creditor and company that deducts money from your account. Be especially conscientious about important bills, such as your mortgage payment.
6. Update contact information. Provide your old bank with your new address and phone number. This can come in handy later if the bank needs to contact you about insufficient funds in your old account or some other problem that must be addressed promptly.
7. Empty your safe deposit box. Return the keys too. Then remember to tell your family that you've taken this step so they don't bother trying to gain access to the box contents at the wrong bank. 8. Know who to call. As a security measure in case problems arise with your old or new account, obtain the name and direct phone number of a good teller, branch manager, customer service representative, loan officer or supervisor at both banks.
9. Take advantage of perks. If you're moving, some banks will try to lure you with handy relocation packages that include maps and city guides, as well as special deals, such as free checking and a free safe deposit box for a year. That means it pays to shop around for a new bank.
10. A few phone calls may do the trick. If you intend to stay with a large bank that offers coast-to-coast banking and ATM networks, you'll still need to switch branches and obtain new checks. In most cases these details can be handled over the phone, but be on the lookout for unexpected fees.
