Depending on the fees involved, it can even be worth it to maintain your existing account, but open a new account to save on debit card costs or specific types of transactions.
However, especially in the case of checking accounts, closing your account to avoid annual account fees can be a good idea (savings accounts and pillar 3a retirement accounts generally do not have an annual fee).
Changing your checking account is, in itself, a fairly simple procedure. But closing your main account involves notifying any individual or organization that conducts transactions with your bank account.
Here we’ve listed a number of points to consider when making a move to a new bank account. Depending on your situation, these may not all apply, but this checklist provides a good basic reference.
Bank account switch checklist: Who needs your new account information?
- Employers (if you receive your salary through your bank account).
- Publishers (magazine or newspaper subscriptions).
- Educational institutions (schools, universities).
- Government agencies (tax office, social services).
- Phone and internet service providers.
- Credit card companies (especially if you make your card payments via recurring transfers).
- Other financial service providers and consultants.
- Doctors and medical facilities (if these aren’t covered by your health insurance).
- Gyms at which you have memberships.
- Landlords (especially if you pay your rent via a recurring transaction).
- Insurance companies (health insurance, auto insurance, liability insurance, home insurance).