A quick guide to switching your bank

Not too long ago, people would rarely switch bank accounts except in very unusual circumstances. But a lot has changed in the Indian banking industry in the last few decades. Private domestic banks, small finance banks, online banks, international banks, and other financial institutions have now joined the public sector banks to bring more dynamism to the industry. 

Bank customers who are facing higher bank charges, earning less interest income, or simply unhappy with their bank can easily change bank accounts. However, you should consider a few things when you change bank accounts. Read on for five steps that can be a guide to switching banks.

Evaluate your reasons and find an alternative

You may not be keen to continue with your existing bank account, but you must assess if and how switching banks will help. If you have a different banking option with a higher interest rate, more ATMs in your locality, a better reputation for service quality, lower fees etc., switching banks would make sense.

Open a new bank account

Once you identify a bank that answers your needs or resolves your problems, open a bank account there. This should be done while you retain your existing bank account so that the bank switch is seamless. Give yourself some time to get the hang of the new banking experience so that you are convinced of its services. 

Transfer money to your new account

If you switch bank accounts, you can also transfer funds from your old account to the new one. You can divert your existing fund flow to your new account by intimating customers or changing your salary credit instructions. If you are opening an account with IDFC FIRST Bank, your income will generate up to 7% interest per annum, which will be credited monthly, leading to increased compounding of interest and higher interest income. 

Give it a final review

Have a look at past bank statements or accounts online for any unresolved issues. Also check past correspondences with the bank to identify and settle any outstanding claims. There could be loans or EMIs linked to the account, automatic payments, auto-debit instructions, or payables and receivables with the bank. 

Enable closure

You can close your old account after you have cross-checked your account and the new bank account is fully functional. You can open a new IDFC FIRST Bank savings account through a hassle-free paperless process involving video KYC. The old bank will give you a written confirmation of the closure, which will also indicate no outstanding on either side. With this, you would have successfully switched banks.

With this five-step guide to switching banks, you can ensure that you don’t face any issues during the switch, and that no issues are left unresolved. And for customers who are switching to an IDFC FIRST Bank savings account, the process will be digital and seamless, with faster interest credits,, and exemplary service.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.