One of the biggest questions people have when switching to a new bank or credit union is how long does switching bank accounts take. It’s understandable—these days, most people get their paycheck direct deposited into their accounts, not to mention make automatic digital payments from their accounts. The longer switching to a new bank account takes, the longer you’ll be without a paycheck and the more likely you are to be late in paying all the bills that were connected to your old account.
Unfortunately, there’s no simple answer to this question. It all depends on your employer and the companies that you pay. However, some steps are faster than others, and when you have an idea about how long each step can take you’ll be able to use this information to make your switch go a lot easier.
Opening up a New Account is Fast
Let’s start with the good news. Opening an account doesn’t take much time at all. In fact, in many cases, you can open an account the same day you fill out your application, provided you have enough money for the initial deposit.
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Transferring Direct Deposits May Take a Couple Weeks
On the other end of the spectrum, transferring your direct deposit to another financial institution can take some time. While many companies will be able to transfer your direct deposit to a new account starting with your next paycheck, other companies might take longer. When transferring direct deposits, always check with your HR department to find out how long the process will take.
Transferring Bill Payments Depends on the Company
Finally, transferring electronic bill payments completely depends on the company. While some companies might be able to transfer your payments immediately, others might need an additional pay cycle to process the information. Again, you’ll need to check with each company to figure out when the transfer will take place.
How to Use This Information to Your Advantage
While all these conflicting timelines might seem designed to give you the biggest headache in history, once you know the timelines for each process you can use that information to make switching financial institutions easier.
The simplest way to use this information is by submitting your direct deposit, finding out when the transfer will take place and then contacting all of the companies to which you make automatic payments. You can have them transfer their billing to your new account and also have them change the date your bill is due to after your direct deposit transfer request is processed.
On the other hand, if companies can’t or won’t change the due date of your bill, you’re still at an advantage. Just make sure their next bill will go to your new account and leave enough money in your old account to pay everyone off. It will be a little more work, but you’ll still be able to pay all your bills on time and on the next billing cycle you’ll have everything transferred to your new account.
Make the Switch Easier With First Alliance Credit Union
One of the more difficult parts about switching to a new bank or credit union is dealing with how long each part of the process will take. Once you have that information, though, you can use it to your advantage to make switching financial institutions easier.
You can also make switching to a new bank or credit union easier when you use First Alliance Credit Union’s free downloadable switch kit. Not only does it let you write down all your automatic payments and direct deposits along with their due dates, it also provides you with form letters that will make direct deposit and automatic payment transfers much easier.
