Follow our simple guide if you want to transfer your savings to a different bank.
There are some things we should clear up when it comes to moving your money.
Your new bank will not be able to deal with your old one. This is not because they’re evil or anything, but because your old bank may not return their money until they have a new address for you. This is to prevent theft and fraud. They will not be able to transfer any money.
So don’t plan on doing a direct transfer. You’re going to need to set up a full bank account at your new bank.
If you use a different address, your old bank might still return them to you. The bank will want to ensure that any money that might be sent back is indeed your money, so this will slow down the process. Only send money to people with whom you have a trusted relationship. Otherwise, they might take your money, and you’ll be forced to initiate a retrieval order to get it back.
If you absolutely must transfer via electronic banking, you can request an Advance Payment, and your bank may sort it out.
Why You Might Need or Want to Transfer Your Savings Account
If you want to transfer your savings account to a more appropriate financial institution or offer, it is important that you transfer the account without losing any money. Open up a new savings account at a bank that has higher interest rates than your current bank. Then, call your old bank and transfer the maximum amount of money possible. This way, when you make your first transfer, you won’t have to worry about the second transfer backfiring on you. If you have more than one savings account with your old bank, transfer as many as you can. This will help you equalize the amount of money that you can save overall, thus increasing your savings.
If you have a few extra minutes to spare and want to get a bit more organized, you can transfer your money to an online savings account. Transfers that happen online are paperless, so there will be less of a chance of your funds being lost in the shuffle.
Thing to Consider in a New Account
When it comes to saving money, you have a lot of options available to you. However, the best account for you is the account that will help you reach your savings goals.
You have to determine what your financial goals are before you select the right account. If it is building up a five year emergency fund, you would want an account that will reward you for keeping your money in the account for the long term.
On the other hand, if your goal is to save up enough money to buy a new house, you need to find an account that maximizes compound interest.
Ultimately, which account is best for your savings goal will depend on several factors. However, one of the biggest things to think about when it comes to your financial goal is how much risk you are willing to take with your savings.
If you are in your late 60s and nearing retirement age, you might want to invest in something with a guaranteed rate of return. Look for accounts that have an interest rate that is higher than your current best savings account.
However, if you are younger than retirement, you might be more willing to take a few risks with your money. Look for a hybrid savings accounts that offer you a higher interest rate when you don’t always keep a large amount of money in the account.
How to Transfer Your Savings Account
Transferring a savings account can be one of the most helpful tools that is provided by a bank. In fact, there are different accounts that you can transfer to another bank account that can make it easier for you to move your finances from one bank to another.
It pays to know how these accounts work. A savings account can be transferred to different accounts in order to make a better account for your needs. There are several accounts from which a savings account can be transferred and some of these are discussed further below to explain how to transfer a savings account.
Anytime, Anyday Checking to Savings.
The first account that is transferrable is your everyday checking to a savings account. Typically, a savings account is used to accrue interest as opposed to spending the money. With an everyday checking account, you need to look at the penalty fees associated with keeping the account open in order to decide whether or not this is a good move for your needs.
Things to Keep in Mind
When it comes to moving your savings account from one bank to another, make sure that you’re aware of the specific terms of the transfer.
Find out about Fees
Some banks will charge you for the service of transferring your savings to them. Make sure to ask any banks you’re looking to transfer to if they charge a fee for this transfer. If they do charge a fee, how much is it?
Determine if You Need to Do Anything
Before you transfer your savings to another bank, check the fine print of your current account to see if you are required to do anything. This could be anything from changing your direct deposit account to closing your account to moving the funds to the new account.
Conduct a Test Transfer
To save time and energy, conduct a test transfer of your money. This way, if anything goes wrong, you can prevent major headaches. Make a call to the bank with your test funds and go through the steps of the actual transfer before you initiate it.