Whether it’s time to move on from the bank account you opened when you were a teen, or you’re going through a major life change like getting married, switching bank accounts can feel cumbersome. Fortunately, it doesn’t have to be hard to close your account and open a new one that better suits your needs.
Read more: How an Ally Bank Spending Account can simplify your finances
When should you switch bank accounts?
There are a variety of reasons to switch banks — maybe you’ve had one too many bad customer service experiences, or you want better digital features. Regardless of why, you should change banks when your current account is no longer working for you.
Benefits of an Ally account
If you’re thinking about finding a new bank, look for one that offers better account benefits than your existing bank. At Ally Bank, all of our accounts offer competitive interest rates, no minimum balances and convenient online banking features.
Ally Bank Spending Account benefits
An Ally Bank Spending Account is a checking account that provides customers with:
ATM access and fee reimbursement
Getting paid up to two days early with early direct deposit
Overdraft protection
CoverDraft℠, a fee-free temporary protection of up to $250 for Ally Bank Spending Account overdrafts
Tools to track your finances, like spending buckets
No minimum deposit required to open an account
24/7 customer service
Keep in mind, CoverDraft isn't a line of credit or a guarantee. If your purchase isn't covered for any reason (let's say the transaction exceeds your CoverDraft limit, for example), it will be declined - but we'll never charge you an overdraft fee.
Ally Bank Spending and Savings Account benefits
When you open both an Ally Bank Spending and Savings Account, you can get tools that work together to help grow your money faster.
Set up round ups on your debit purchases to grow your savings as you spend.
With Surprise Savings, we automatically scan your checking account to find more savings.
Set aside money with buckets to see the whole financial picture of your spending and saving
Move your money faster and easier when you have both accounts at Ally
Preparing to close your bank account
Once you’ve decided to make a switch, here’s how to close your current account.
Step 1: Assess your financial readiness
Ensure all checks have cleared and verify the account is in good standing with no negative balances.
Step 2: Understand your bank’s policies
Ask your current bank if it has account closing fees or penalties. While you likely won't be charged for closing a basic savings account, you might have to pay for other accounts, like money market accounts.
Process of closing your bank account
Follow these steps to transition from one account to the other.
Step 3: Stop all transactions
Cancel any automatic deposits tied to your old bank account. For example, if your paycheck is directly deposited currently, switch to a direct deposit at your new bank before closing the old account.
You may also have automatic bill pay connected to your bank account. Move these to your new account to avoid any late fees from those services.
Step 4: Transfer your balance
Withdraw the majority of your remaining balance and deposit it in your new account. Contact your old bank to ensure you’ve collected all of the interest you are owed.
Step 5: Officially close the account
Depending on your old bank’s processes, you could close your bank account online, in person at a local branch or over the phone. Some banks may require you to submit a written request.
Cancel any automatic deposits tied to your old bank account. For example, if your paycheck is directly deposited currently, switch to a direct deposit at your new bank before closing the old account.
After closing your bank account
Before fully moving on from your old account, take these final steps to ensure you’re set up for success.
Step 6: Review your final statement
Look at your last statement to confirm it doesn’t have any unexpected or unfamiliar transactions. If something doesn't match your memory or records, contact your old bank to resolve the discrepancy immediately.
Step 7: Secure your financial information
Request a written confirmation of the account closure and details from the bank. Even if you receive a confirmation letter, it’s a good idea to call the bank and double-check.
Gaining a financial ally
Closing out a bank account can seem intimidating, but if you practice a little due diligence, you can more easily move on to an account that’s better suited for your financial habits.
