Switching bank accounts
Making the switch
There's no reason for you to stick with your bank account if
you're unhappy. Here we explain how switching is a simple three
step process.
Find another transaction
account
Look for an account that has lower fees, easier access, better
service or a higher interest rate than the account you currently
have.
If all your accounts are with one bank, check if you are getting
their special package rate. If you switch one of your accounts you
may lose this rate.
Before you open a new account, read the terms and conditions so
you are aware of all the fees and charges. The last thing you want
is to open a new account with higher fees than your current
one.
Transfer your direct
debits and credits
Once you choose a new account you have two options. Ask your new
bank to help you switch or do it yourself.
Ask your new bank to help
If you ask your new bank to help you switch they will contact
your current bank to get a 13-month list of:
- Direct debits (like gym membership
or regular utility payments)
- Direct credits (like your salary)
Your new bank will give you the 13-month list so you can decide
which regular direct debits or credits you would like to move
across to your new account. You can ask your new bank for help with
this process.
You can also authorise your new bank to give all of the relevant
payees your new account details.
Remember that the 13-month list will not include:
- 'Pay anyone' payments (like 'fortnightly baby sitter' or
'monthly gardener' payments)
- BPAY payments
- Recurring payments where you have supplied your debit card
number
You will need to sort these out yourself and your new bank can
show you how.
Do it yourself
If you want to make the switch yourself you should request a
13-month list of direct debits and credits from your current bank
and take it to your new bank.
Ask your new bank to inform your relevant payees (i.e. direct
debit payees and credit organisations) of your new account
details.
Make sure you take across to your new account all the payments
you have coming out of your old account, including:
Smart tip
Leave some money in the old account to cover any payments you
may have forgotten. If you miss a payment you could be charged
penalty fees.
- Payments for insurance policies, electricity bills and health
insurance
- Payments for personal loans or store credit cards
- Annual subscriptions or membership fees such as gym memberships
and childcare fees
- Regular charity payments
You should also give your new account details to your employer,
Centrelink and anyone else who pays you money.
Close your old account
You can close your old account once you have:
- Transferred your direct debits and credits
- Printed out your 'pay anyone' list and BPAY payments from your
old online banking account
- Notified all your merchants of your new debit card number or
account number
It's important that you eventually close your old account
because even if it is empty you may still get charged account
keeping fees.
Ring your bank and find out what you need to do to close your
account. They normally require you to go to the branch in
person.
Switching bank accounts is easy so don't feel
like you have to stay with the bank you've always been with. There
are plenty of accounts to choose from that may better suit your
needs.
Related links
Last updated: 26 Sep 2018