Change your bank account
Switching banks means moving your pay, government deposits, automatic payments and linked apps. Do it in the right order so nothing bounces.
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Your plan so far
10things this change touches
- critical0
- high7
- moderate3
- low0
Updates as you answer. Every item will explain why it’s there.
What could break
In a typical bank account plan, these are the most serious things to get right.
Employer payroll: switch your direct deposit
Critical · Work & school
A pay deposit can go to the old account, or be returned and delayed, if the change misses the payroll cut-off.
Mortgage or rent: move the payment to the new account
Critical · Banking & payments
A missed payment can bring fees from the lender or landlord and, for a mortgage, may be reported to credit bureaus.
Open the new account and set it up fully
High · Banking & payments
Payments sent to an account that isn't fully set up can be held or returned.
List everything that pays into and out of the old account
High · Banking & payments
A forgotten charge fails months later, often on something you rely on, like insurance, a domain or a backup service.
Loans, mortgage and cards at the old bank: check how they'll be paid
High · Banking & payments
Closing the account can leave a mortgage, loan or card payment with nowhere to come from.
Keep the old account open with a buffer
High · Banking & payments
A debit against an empty or closed account can bounce, bringing non-sufficient funds (NSF) fees from the bank and late fees from the biller.
Test the new account with a small transfer
High · Banking & payments
A typo in the details could send your pay or a refund somewhere it's hard to recover from.
Tax and benefits offices: update your bank account
High · Government & tax
A payment sent to a closed account may be returned and reissued later, which takes time.
Credit card autopay: switch it to the new account
High · Banking & payments
A failed card payment brings a late fee, interest, and possibly a missed payment on your credit file.
Insurance premiums: update the debit account
High · Insurance
A missed premium can lapse a policy.
Before and after the change
Before you change it
- Open the new account and set it up fully
- Ask the new bank what it can move for you
- List everything that pays into and out of the old account
- Loans, mortgage and cards at the old bank: check how they'll be paid
- Keep the old account open with a buffer
- Uncashed cheques: keep enough to cover them
After the change
- Test the new account with a small transfer
- Employer payroll: switch your direct deposit
- Tax and benefits offices: update your bank account
- Mortgage or rent: move the payment to the new account
- Credit card autopay: switch it to the new account
- Insurance premiums: update the debit account
- Utilities, phone and internet: update the debit account
- Automatic savings and investment contributions: update the source account
- Gyms, memberships and donations: update the payment account
- Bill payees and scheduled transfers: recreate them at the new bank
- Debit card charges: move them to the new card
- PayPal: link the new bank account
Your own plan adds or removes items based on your answers, and explains why each one is there.
The safe order
Doing things in the right sequence is what keeps you from getting locked out halfway through.
Before the change
Step 1: Open the new account and set it up
Online banking, alerts and the new account's direct deposit details.
- Open the new account and set it up fully (high risk)
- Ask the new bank what it can move for you (moderate risk)
Step 2: List everything that pays in and out
Twelve months of statements, including the once-a-year payments.
- List everything that pays into and out of the old account (high risk)
- Loans, mortgage and cards at the old bank: check how they'll be paid (high risk)
Step 3: Keep the old account funded
A buffer catches anything you haven't moved yet.
- Keep the old account open with a buffer (high risk)
- Uncashed cheques: keep enough to cover them (moderate risk)
During the change
Step 4: Test the new account with a small transfer
Prove the details work before you hand them out.
- Test the new account with a small transfer (high risk)
Step 5: Redirect your pay and government payments
Payroll and government offices each need the new details separately.
- Employer payroll: switch your direct deposit (critical risk)
- Tax and benefits offices: update your bank account (high risk)
Step 6: Move pre-authorized debits and autopays
Housing and loans first, then everything else on your list.
- Mortgage or rent: move the payment to the new account (critical risk)
- Credit card autopay: switch it to the new account (high risk)
- Insurance premiums: update the debit account (high risk)
- Utilities, phone and internet: update the debit account (moderate risk)
- and 2 more
Step 7: Recreate bill payees and move card charges
These live at the old bank and don't come with you.
- Bill payees and scheduled transfers: recreate them at the new bank (high risk)
- Debit card charges: move them to the new card (high risk)
Immediately after
Step 8: Relink payment apps and investment accounts
Apps and brokerages keep their own link to your bank.
- PayPal: link the new bank account (high risk)
- Investment and retirement accounts: update the linked bank account (moderate risk)
Step 9: Tell people who pay you
Through a channel they already know is you.
- People who pay you: send them the new details (moderate risk)
Verify
Step 10: Confirm pay and payments use the new account
Tick off each item as it happens for real.
- Confirm your first pay lands in the new account (high risk)
- Confirm each moved payment came from the new account (high risk)
Clean up
Step 11: Download statements before you close
Online access usually ends when the account closes.
- Download statements and tax documents (moderate risk)
Step 12: Close the old account last
After a full cycle passes with nothing new hitting it.
- Close the old account last (high risk)
Later
Step 13: Watch for stragglers
Annual payments can turn up months later.
- Watch for stragglers (moderate risk)
Why this change needs a plan
Your bank account sits in the middle of everything: pay comes in, the mortgage or rent goes out, credit cards are paid from it and payment apps pull from it. None of those connections move on their own when you open a new account.
Some parts are easy to forget because they live inside the old bank: online bill payees, scheduled transfers, e-Transfer settings and the debit card that subscriptions are charged to. Government payments like tax refunds and benefits are another blind spot, because each agency keeps its own copy of your details.
The safe approach is to run both accounts side by side. Point money at the new account one connection at a time, keep a buffer in the old one, and close it only after a full cycle passes without anything new arriving or leaving.
Why it matters
A missed switch shows up as a bounced mortgage payment, a pay deposit in the wrong place or a returned tax refund. Each is fixable, but each costs fees, time or stress you can avoid with a bit of order.
What makes it risky
Risk is highest when your pay or government payments go into the account you're closing, when housing or loan payments come out of it, and when it's a joint account. Closing the old account too soon is the most common way things go wrong.
Common mistakes
- Closing the old account before a full billing cycle has passed, so a forgotten debit bounces.
- Assuming online bill payees and scheduled transfers move with you; they stay at the old bank.
- Forgetting annual payments like insurance premiums, property tax and memberships.
- Updating payroll after the cut-off, so a pay lands in the old account.
- Forgetting government payments like tax refunds and benefits, which are updated separately from your employer.
- Leaving payment apps, investment accounts or credit card autopay linked to the closed account.
- Not downloading statements and tax documents before online access ends.
- Changing a joint account without agreeing the plan with the other holder.
Frequently asked questions
How long should I keep my old bank account open after switching?
Keep it open until your pay and government payments have arrived in the new account and at least one full billing cycle has passed with nothing new coming in or going out. Many people wait about two cycles, and longer if they have annual payments due.
Do pre-authorized debits move automatically to my new bank?
Usually not. You give each company that debits your account the new details. In the UK, the Current Account Switch Service can move Direct Debits and standing orders when both banks take part.
What happens if a payment hits my closed account?
It's usually returned to the sender. The biller may charge a fee and treat the payment as missed, so check your list carefully before closing and watch for notices afterwards.
Will my bill payees transfer to the new bank?
No. Online bill payees, scheduled payments and recurring transfers are stored at each bank. Export or screenshot them first, recreate them at the new bank, then cancel the old ones so nothing pays twice.
How do I change direct deposit for tax refunds and benefits?
With each government office that pays you. In Canada, that's CRA My Account for tax refunds and benefits, and My Service Canada Account for EI, CPP and OAS. In the US, the IRS uses the account on your tax return, and Social Security deposits are changed through my Social Security.
Is there a service that switches everything for me?
In the UK, the Current Account Switch Service moves payments and redirects ones sent to the old account. Elsewhere, some banks offer switching help or forms, but you'll usually update payers and billers yourself.
Do I have to close my old account?
No. Some people keep it open with a small balance as a backup. If you do, check for monthly fees and any inactivity rules, and keep an eye on it.
Regional notes
General information, not legal advice. Check the official source where you live.
- Canada
- The CRA advises not closing your old account until your first CRA payment has been deposited into the new one. EI, CPP and OAS direct deposit is changed separately through My Service Canada Account.
- United Kingdom
- If both banks take part in the Current Account Switch Service, it moves Direct Debits, standing orders and salary payments and redirects payments sent to the old account. Check recurring payments on your old debit card yourself.
- United States
- The IRS sends a refund to the account on your tax return. If you've filed with the old account, keep it open until the refund arrives.
- Australia
- Services Australia lets you update bank details for Centrelink, Medicare and Child Support online, by phone or in person.