If you've been putting off switching bank accounts because you're worried it'll be a difficult task, don't be. It's easier to switch than you may think, and your bank actually does most of the work for you.
Here are the three basic steps involved with switching bank accounts:
Step 1: Choose your new bank account.
Step 2: Ask your new bank to carry over your previous direct debits and credits.
Step 3: Review your direct debits, and close your old account.
Step 1: Choose a new bank account
Before you can switch your account, you first need to find a new account to switch to. Here's what to consider when choosing a new account.
Account keeping fees. Look for an account that charges no or low monthly account keeping fees.
Deposit conditions. If the account does require you to meet a monthly deposit requirement (this can be anywhere from $200 to $2000 a month), make sure it's an amount that you can easily meet each month.
ATM fees. If you regularly withdraw money from an ATM, check what the fees are for using an ATM outside of the bank's network as well as overseas.
Overseas fees and charges. If you travel a lot or regularly shop online from overseas retailers, check what the international transaction fee is when comparing bank accounts. Some bank accounts don't charge an international transaction fee at all, and other will waive this fee if you meet certain deposit conditions.
Linked savings account. Do you want to open a savings account with the same bank? If so, check what interest rate you can earn with the savings account.
Payment options. Check that the bank account supports Apple Pay, Google Pay or Samsung Pay and offers instant payments using PayID, if these features are important to you.
Joint account. If you're looking for a bank account that you can share with another person (for example your partner), make sure you check if the account can be opened as a joint bank account.
The Australian government banking reforms that became active from 1 July 2012 made it very easy to change banks. All you have to do is choose the financial institution you want, whether it be a bank, credit union or building society, fill out one form and the institution will do all the work for you.
The bank will contact all the institutions you have automatic debit and credit arrangements with giving them your new transaction account details.
Once you have shopped around and found the bank you want to work with, ask them to help with the switch. When contacting your new bank for help, the bank will need a 13-month transcript of direct debits and credits from your previous bank.
The 13-month list will be given to you by your new bank so you can choose what debits and credits you would like to transfer over to your new bank account. If you have trouble, just ask your new bank to help you.
The following items will not be included on the 13-month list:
“Pay anyone” transactions (such as fortnightly cleaner payments or bills).
BPAY payments.
Payments that are recurring and where you've given your debit card number.
Step 3: Close your old account
Once you've opened your new account, don't forget to close the old one. Although the old account may have no money in it, the bank could still charge you account keeping fees. Close your old account once you have:
Successfully moved all your debits and credits.
Collated your list of payments from your old account that include "pay anyone" and BPAY.
Told every institution about your new card and account numbers.
Closing your old account is a relatively hassle-free process. Normally you will have to visit a branch to close the account.
Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds.
Get an everyday transaction account for over 50s with no monthly fees, no ATM withdrawal fees in Australia and with Apple Pay, Google Pay and Samsung Pay available.
The Australian Military Bank Mess Account requires your attention if you wish to simplify managing the daily finances of your ADF related organisation.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
