7 steps to say “buh-bye” to your bank

Earlier this week I told you how to shop for new bank (or credit union); a week before, I’d written about why you might want to.

As promised, here’s what to do after you’ve made the decision to jump ship.

Make a list. Review your transactions for the last few months and list all the automatic and recurring payments being made out of your current account. Don’t forget to include any automatic payments that occur less often, such as quarterly, biannual or annual payments.
Open your new accounts. If you open your accounts with a check, there will typically be a holding period before you can access your funds. Also, ask about getting true overdraft protection, which links your checking account to a savings account, credit card or line of credit.
Set up online access. Familiarize yourself with the new bank’s system and add the accounts to any personal finance software or site you use (Quicken, Mint, Yodlee, etc.) If you use online bill pay, you can start adding payees to the new bank’s system.
Switch any direct deposits. You’ll typically need to contact your employer’s human resources department and fill out a form with your new bank’s routing number and your account number.
Transfer any automatic or recurring payments. If you were making payments from your old bank’s bill pay system, set up the payments on the new bank’s system. If the automatic debits are coming from billers, contact those companies and give them your new bank’s information. (You may be able to do this on the billing companies’ Web sites.)
Monitor both accounts for a few weeks. Check in frequently to both banks to catch any messed-up or missing payments.
Shut down the old accounts. Contact your old bank and ask how it wants you to proceed. Ask that any remaining balances in your accounts be mailed to you or transferred to the new bank. Cut up debit cards and checks associated with the old account.