Is it time for you to switch your bank accounts?
You may want to switch your current account because your fees are too high, you are unhappy with the service or perhaps your current bank is leaving the Irish market.
If you have decided it’s time to switch banks a good place to start is by reviewing the other options out there and finding out which bank best matches what you require. You should also visit each of the bank’s websites for full details about their services.
1 Preparing to switch- what to consider?
Before you open your new account, you should think about what you require from your new provider.
Do you need access to a physical branch for cash lodgment services or is your banking all done online?
How user-friendly are their online services?
2 Good ways to pick a provider
Search the market and review the different available offerings. Upon choosing one that is best suited to you, the new bank should supply you with a switching pack, this could be online or in the branch. This should include information about the different account types on offer and detailed steps guiding you through the switching process.
Top things to look out for:
- A copy of their terms and conditions
- A guide to their fees, charges and interest rates
- An account transfer form
- Contact details for making an appointment if it’s needed
It’s important to note the switching date, your new bank should have your new account up and running within 10 days after the agreed switching date.
If you are keeping your old account open, remember depending on the account you might have to continue paying monthly maintenance etc., make sure to let your new bank know what you decided to do with your old account before you switch.
A helpful tip to note is to choose a period of low activity to switch accounts, for example, if you have bills coming out of the account at the end of the month it is best to make sure to change your account before then.
A key point to note is to make sure your employer and anyone else who lodges money into your account is provided with the correct new details.
Step 3 Switching time:
Complete the switching forms that your new bank sends you. If you have any direct debits outside Ireland, you will need to inform them. Also, any recurring payments on your debit cards like gym membership or subscriptions will need to be updated with your new card details.
Your old bank will send your list of standing orders to your new bank but it’s good practice to double-check these to ensure they are correct.
The current balance in your old account will be transferred to your new one but note that you may need to leave enough money in your old one to cover any fees you might owe. It’s good to make sure you have enough money in both your old and new accounts to cover any payments that are due and don’t use your old debit card during the switching period as this will slow the process.
Step 4: Closing an account
If you are closing your old account, you might need to ring the bank to go through the process of closing an account.
If your current bank is leaving the market
Things to note are:
- Request a copy of your credit history before you close the account.
- Request a copy of your old statements either online or through your branch
- If you have a credit card and your bank is leaving Ireland, then you will need to transfer your credit card to a new provider. To avoid paying stamp duty twice request a letter of closure and then give this to your new card issuer. Note if you close a credit card account mid-year and don’t open a new one then you will be liable for the full stamp duty of €30.
Having your bank account working the way you need it to and providing the services you need on a day-to-day basis is important so take your time to review your options.
If you are switching providers it can be a good time to review your savings and evaluate if your bank account is the most suitable place for them, depending on your needs, interest rates etc. Sometimes bank savings accounts are not the best place for your lump sum savings, if you need some advice on this area then please feel free to talk to a member of our team.
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