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Switch banks and close your account: Here's how to ensure a smooth transition!
Moving house and need to consider your bank details? No worries, with our guide, closing your old account and switching to a new bank becomes a breeze. Find out which deadlines you need to meet and how banks can assist you. Need support planning your move? Contact us for personalised advice!
The topic short and concise
Moving house and need to consider your bank details? No worries, with our guide, closing your old account and switching to a new bank becomes a breeze. Find out which deadlines you need to meet and how banks can assist you. Need support planning your move? Contact us for personalised advice!
Moving house and need to consider your bank details? No worries, with our guide, closing your old account and switching to a new bank becomes a breeze. Find out which deadlines you need to meet and how banks can assist you. Need support planning your move? Contact us for personalised advice!
Moving house and need to consider your bank details? No worries, with our guide, closing your old account and switching to a new bank becomes a breeze. Find out which deadlines you need to meet and how banks can assist you. Need support planning your move? Contact us for personalised advice!
Simplify your account switch! Discover how to cancel your bank connections stress-free when moving and migrate to a new account. Find out more now!
A move is often associated with many changes. In addition to the new apartment and surroundings, switching banks might also be a sensible choice. Perhaps there is a bank in your new city with better terms or a branch nearby. Or maybe you simply want to adjust your banking to fit your new living circumstances. At GoMovin, we understand that moving can be challenging and would like to assist you with this guide to make the process of switching banks and closing your old account as smooth as possible. Our moving assistance supports you in every step so that you can focus on your new home.
Why switching banks can be beneficial when moving
There are several reasons why changing banks as part of a move can be a good idea. One of the main reasons is geographical proximity. If your previous bank has no branches in your new area, it might be worthwhile to switch to a bank with a better local branch network. This makes it easier to access personal consultations and other services. Another crucial aspect is the terms and conditions. Compare the fees, interest rates, and services of various banks to find the best offer for your needs. Pay attention to account management fees, interest on credit balances, and overdraft options, as well as the availability of ATMs. Lastly, changing banks may also mean adapting to new life circumstances. If, for instance, you require a construction loan, a bank with specialized offers in this area could be the right choice. GoMovin helps you consider these aspects in your moving planning.
Legal basis and consumer protection
In Germany, the account switching process is regulated by the Payment Accounts Act (ZKG). This law gives you the right to account switching assistance. This means that banks are obliged to assist you in your bank switch. The new bank must aid you in transferring standing orders and direct debits and inform your payment partners about your new bank details. The consumer advice centre offers extensive information on this. Banks are required to provide all necessary information and assistance in notifying your payment partners. This also includes providing template letters and forms. Should any errors occur during the account switching process, banks are liable for any financial damages as per § 25 ZKG. In case of problems, you can contact BaFin or consumer protection organisations.
Preparing to switch banks: Here's how to proceed in a structured manner
Good preparation is essential for a smooth bank switch. Before cancelling your old account, you should open a new current account. Compare different offers to find the bank that best suits your needs. Pay attention to interest rates, account management fees, and the ATM network. Consider whether an online bank or a branch bank is better suited for you. Online banks often offer better conditions, while branch banks provide the advantage of personal advice. Have all the necessary documents ready for the account opening process, such as your identity card and a registration certificate.
Open a new current account
When opening a new current account, you should compare various offers. Consider not only the interest rates but also the account management fees and the ATM network. Some banks offer free current accounts if certain conditions are met, such as a monthly minimum payment. Also, find out about the possibility of an overdraft facility and its conditions. Comparing different offers can help you find the best current account for your individual needs. Verivox offers a useful comparison calculator for this purpose.
Overview of existing payment obligations
Create a detailed list of all your existing payment obligations. These include direct debits, standing orders, and incoming payments. Check your account statements for the last 13 months to identify all relevant transactions. Note down all companies and individuals who regularly debit or credit your account. This is important to ensure that all payment partners are informed about your new bank details in good time. ING provides helpful checklists and forms for this purpose.
Create a schedule
Develop a detailed schedule for your bank switch. Plan to operate both the old and the new account in parallel to ensure a smooth transition. This means using both accounts concurrently for a certain period to ensure that all payments are correctly redirected. A period of one to two months is advisable. Record all important deadlines and dates, such as the time of account opening, notifying your payment partners, and terminating your old account. A well-thought-out schedule helps you stay organised and avoid stress.
Use the account switching service: How to benefit from the support
Since September 2016, banks have been required by the Zahlungskontengesetz (ZKG) to offer a statutory account switch service (statutory account switching assistance). This service supports you in transferring standing orders and direct debits. Banks must transfer the data within 12 business days. In the event of errors, banks are liable for any damages according to § 25 ZKG. In addition to the statutory service, many banks also offer a voluntary account switch service (digital account switch service). This service is often more automated and uses external partners to speed up the process. We at GoMovin recommend taking advantage of these offers to make changing banks as simple as possible.
Statutory Account Switch Service (Statutory Account Switching Assistance)
The statutory account switch service has been a requirement for banks since September 2016. It provides you with support in transferring standing orders and direct debits. Banks must transfer the data within 12 business days. The Consumer Advice Centre Baden-Württemberg provides detailed information about your rights. Banks are liable for errors in accordance with § 25 ZKG for any potential damages. This service is usually free, unless you agree to additional paid services.
Voluntary Account Switch Service (Digital Account Switch Service)
Many banks offer a voluntary account switch service in addition to the statutory service. This service is often more automated and uses external partners like Qwist to speed up the process. It analyses your transactions and automatically notifies your payment partners about your new bank details. An example of this is the Sparkasse’s account switch service. This service is often faster than the statutory service but may be less secure in complex payment scenarios. It is important to weigh the pros and cons of both options to make the best choice for your needs.
Advantages and Disadvantages Compared to Statutory Account Switching Assistance
The digital account switch service offers the advantage of faster processing as it automates many processes. However, it may be less secure in complex payment scenarios compared to the statutory account switching assistance. In the statutory account switching assistance, banks are more involved in the process and bear more responsibility for the correct data transfer. It is advisable to thoroughly inform yourself about the services and conditions of both options in advance to make the best choice for your individual situation. The Tomorrow Bank, for example, offers a digital service that analyzes transactions from the past 12 months.
Switch your account: How to inform all parties involved
To successfully carry out the account switch, it is important to inform all parties involved in a timely manner. First, authorise the new bank in writing to provide the desired services. Submit the necessary forms and documents, such as your account details and authorisations. Request all necessary information from your old bank, such as a list of standing orders, direct debit mandates, and incoming transfers. Set the date for the account closure, taking into account a transition period. Inform all your payment partners of your new bank details. This can either be done automatically via the account switching service or manually by yourself.
Authorisation of the New Bank
Provide the new bank with a written authorisation to carry out the account switch for you. Specify in the authorisation which services you require from the bank. This may include the transfer of standing orders, direct debits, and the notification of your payment partners. Submit all required forms and documents to the new bank. These usually include your account details, a copy of your ID card, and any necessary authorisations if, for example, you are acting on behalf of another person. The Volksbank Raiffeisenbanken offers special forms for this purpose.
Information from the Old Bank
Request all necessary information for the account switch from your old bank. This includes a list of standing orders, direct debit mandates, and incoming transfers. This information is crucial to ensure that all payments are correctly redirected to your new account. Set the date for the account closure with your old bank, considering a transition period of one to two months to ensure that all payment partners have received your new bank details and all payments can be processed correctly.
Notification of Payment Partners
The notification of your payment partners is an important step in the account switch. This can either be done automatically via the account switching service of your new bank or manually by yourself. If you are using the automatic service, you should carefully review and confirm the data. If you notify your payment partners manually, you can use template letters provided by your bank or consumer protection organisations. Important payment partners include, for example, your employer, landlord, insurance companies, and authorities such as the main customs office for vehicle tax. The Focus Bank offers helpful tips on this matter.
Cancel old account: Observe deadlines and balance overdraft
Nachdem Sie alle Vorbereitungen getroffen und Ihre Zahlungspartner informiert haben, können Sie Ihr altes Konto kündigen. In der Regel sind current accounts cancellable without notice periods, sodass eine sofortige Kündigung möglich ist. Es gibt jedoch Ausnahmen, wie z.B. bei einer Baufinanzierung, bei der die Sollzinsbindung beachtet werden muss, oder bei einem Festgeldkonto, bei dem eine vorzeitige Kündigung meist mit Verlusten verbunden ist. Verfassen Sie ein formloses notice of termination letter mit Angabe Ihrer Kontonummer, Bankleitzahl und des gewünschten Kündigungsdatums. Wenn Sie einen overdraft facility auf Ihrem alten Konto haben, müssen Sie diesen bei der Kündigung ausgleichen. Ggf. ist eine Umschuldung in einen Ratenkredit möglich.
Cancellation Periods
Current accounts sind in der Regel cancellable without notice periods. Dies bedeutet, dass Sie Ihr Konto jederzeit cancel immediately können. Es gibt jedoch exceptions. Bei einer mortgage müssen Sie die fixed interest rate period beachten. Eine gebührenfreie Kündigung ist hier in der Regel erst nach 10 Jahren oder am Ende der Zinsbindung möglich. Bei einem fixed-term deposit ist eine early termination meist mit losses verbunden. Informieren Sie sich daher vorab genau über die Kündigungsbedingungen Ihres Kontos. Die Finanztip bietet hierzu nützliche Informationen.
Notice of Termination Letter
Für die termination Ihres alten Kontos ist ein informal letter sufficient. Geben Sie in dem Schreiben Ihre account number, bank sort code and the desired cancellation date an. Sie können auch eine template for a notice of termination letter verwenden, die Ihnen von Ihrer Bank oder von Verbraucherschutzorganisationen zur Verfügung gestellt wird. Achten Sie darauf, dass alle notwendigen Angaben enthalten sind, um eine reibungslose Bearbeitung Ihrer Kündigung zu gewährleisten. Die Volksbank Raiffeisenbanken bieten hierfür Musterschreiben an.
Dealing with Overdraft
Wenn Sie einen overdraft facility auf Ihrem alten Konto haben, müssen Sie diesen bei der cancellation settle. Dies bedeutet, dass Sie den offenen Betrag entweder von Ihrem neuen Konto überweisen oder eine andere Finanzierungsmöglichkeit nutzen müssen. Ggf. ist eine rescheduling into an instalment loan möglich, um den Dispokredit abzulösen. Informieren Sie sich bei Ihrer Bank über die verschiedenen Optionen und wählen Sie die für Sie passende Lösung. Die Verivox informiert über die Kündigung mit Dispo.
After Changing Banks: Securing the Transition Phase and Data Reconciliation
After the bank switch, it is important to plan for a transition period and carefully check all data. Operate both your old and new accounts parallel for a period of 1-2 months to ensure all payments are correctly redirected. Regularly check your account statements to identify failed transactions. Update your account details with all your payment partners. Also, review your online accounts, such as Amazon or iTunes, and independently change your bank details there. This ensures that all payments proceed smoothly.
Operating old and new accounts in parallel
It is advisable to operate your old and new accounts in parallel for a period of 1-2 months. This ensures that all payments are correctly redirected and no transactions are lost. During this time, you should regularly check your account statements to ensure all credits and debits are recorded correctly. This allows you to identify and fix any errors early. The Sparkasse recommends running the old account parallel for up to 89 days.
Reviewing account statements
Regularly review your account statements to ensure all transactions are correctly recorded. Pay particular attention to failed transactions, which might indicate incorrect bank details or other issues. Contact your bank or the relevant payment partner immediately to determine the cause of the problem and find a solution. A thorough review of your account statements helps you avoid financial losses and successfully complete the bank switch.
Updating account details
Ensure that you update your account details with all your payment partners. This is particularly important for companies that ignore automatic notifications. Also, check your online accounts, such as Amazon, iTunes, or PayPal, and change your bank details there independently. Only then can you ensure that all payments proceed smoothly and avoid unnecessary fees or reminders. The ING advises that the vehicle tax must be changed directly with the main customs office using a SEPA direct debit mandate.
Moving Abroad: Planning an International Bank Switch
When moving abroad, there are several specific factors to consider when changing banks. Within the EU, the account switching service is only partially available. Your old bank in Germany must provide you with all the necessary information, but your new bank abroad is not obliged to offer account switching assistance. Therefore, thoroughly research foreign banks and compare various offers. Pay attention to fees, services, and any potential language barriers. Open an account in your destination country in a timely manner and have all the necessary documents and evidence ready. We at GoMovin also support you with your international move and help you plan and execute all the necessary steps. Our emigration tips provide you with valuable information.
Changing banks within the EU
When changing banks within the EU, the account switching service is only partially available. While your old bank in Germany must provide you with all the necessary information, your new bank abroad is not obliged to assist with account switching. This means that you must personally organise the transfer of standing orders and direct debits, as well as informing your payment partners. Therefore, find out in advance exactly about the conditions and prerequisites for changing banks in your destination country. The Consumer Center provides information on the specifics of switching in another European country.
Information about foreign banks
Thoroughly research foreign banks and compare different offers. Be mindful of fees, services, and potential language barriers. Some banks offer special accounts for foreigners tailored to their needs. Also, find out about the safety of the banks and the deposit insurance in your destination country. Comparing various offers can help you find the best bank for your individual needs. Our emigration preparation supports you in your research.
Opening an account in the destination country
Open a bank account in your destination country in good time and have all the required documents and proof ready. Generally, you will need your passport, proof of registration, and evidence of your income or assets. Seek information from the bank in advance about the exact requirements and prepare all documents carefully. Opening an account in advance will make settling into your new home easier and allow you to manage your financial affairs smoothly. Our emigration checklist helps you with this.
Reducing costs: Keep an eye on fees when switching banks
The statutory account switching assistance is essentially free of charge. However, unless you agree to paid additional services. Pay attention to the appropriateness of the fees and request a detailed breakdown of the costs. Compare the account management fees of different banks. Online banks are often cheaper than branch banks. Some banks offer free current accounts if certain conditions are met, such as a minimum monthly deposit. We at GoMovin help you find the best deals and keep an eye on your expenses.
Fees for the account switching service
The statutory account switching assistance is essentially free of charge. However, there is an exception: If you make agreements with your bank for chargeable services, fees may apply. This may occur, for example, when you use additional consulting services or special services. Therefore, inform yourself in advance about the costs and services of your bank's account switching service. The Verbraucherzentrale Baden-Württemberg provides information about the fees.
Appropriateness of fees
Pay attention to the appropriateness of the fees charged for the account switching service. The fees must be cost-oriented and transparent. Request a detailed breakdown of the costs from your bank and compare the prices with other providers. If you feel that the fees are excessive, you can contact BaFin or consumer protection organizations. Finanztip provides tips on how to avoid hidden charges.
Comparison of account management fees
Compare the account management fees of various banks. The differences between the banks can be significant. Online banks are often cheaper than branch banks as they have lower staffing and operating costs. Some banks offer free current accounts if certain conditions are met, such as a minimum monthly deposit or a certain number of transactions. Therefore, find out in advance about the terms and requirements for a free current account. Focus Bank offers a comparison calculator for current accounts.
Seamless bank switch: How to ensure a stress-free move
A bank change when moving house can be a sensible decision to adapt your banking arrangements to your new circumstances. With careful preparation, the use of the account switching assistance and thorough follow-up, you can make the process smooth and stress-free. Here at GoMovin, we support you with our comprehensive services and expertise. This way, you can focus on settling into your new home comfortably. Digitalisation and automation will make bank changes even easier in the future.
Summary of Key Steps
The key steps for a smooth bank change are preparation, execution and follow-up. A careful plan and check are crucial for success. Compare different offers, list your payment obligations, inform your payment partners in good time and check your bank statements carefully. With good organisation and a little patience, you can handle the bank change with ease.
Use of Account Switching Assistance
Make use of your bank's account switching assistance to save time and effort. Banks are obliged to support you when transferring standing orders and direct debits and to inform your payment partners. This provides you with great time-saving and safety. Inform yourself in advance about the services and conditions of your bank's account switching service and take advantage of the assistance offered. The Sparkasse offers a free switching service.
Outlook
Digitalisation and automation will make the bank change even easier in the future. More and more banks are offering automated account switching services that speed up and simplify the process. Communication with payment partners is also increasingly digitalised, allowing you to change your bank connection conveniently online. At GoMovin, we keep a close eye on these developments and continuously adapt our services to offer you the best possible service.
Moving is an exciting time but can also come with some challenges. At GoMovin, we want to make your transition as easy as possible. With our expertise in relocation and our comprehensive service offering, we support you at every step of your move – from planning to execution. Simplify your move with GoMovin! Contact us today to learn more about our services and receive a tailored quote. Visit our contact page.
Further useful links
The Verbraucherzentrale provides comprehensive information about your rights and the obligations of banks when switching accounts.
The Volksbank Raiffeisenbanken offer support and special forms for switching accounts.
FAQ
Why should I switch banks when moving?
A move provides a good opportunity to review your bank's terms and conditions. There might be banks in your new city with better offers or a more convenient branch network. It can be worthwhile to compare the account maintenance fees, interest rates, and services of different banks.
What legal rights do I have when switching banks?
The Payment Accounts Act (ZKG) grants you the right to account switching assistance. The new bank is obliged to help with the transfer of standing orders and direct debits and to inform your payment partners.
How long does switching banks take?
Banks must transfer the data within the framework of the statutory account switching assistance within 12 business days. Many banks also offer a digital account switching service which can speed up the process.
What do I need to do to inform my payment partners about my new bank details?
You can either use the account switching service of your new bank, which automatically notifies your payment partners, or you can inform your payment partners manually. Use template letters provided by your bank or consumer protection organizations for this purpose.
Can my old bank charge fees for switching accounts?
The statutory account switching assistance is generally free of charge. Fees can only be incurred for agreed additional services. Pay attention to the reasonableness of the fees and request a detailed breakdown of the costs.
What happens to my overdraft if I switch banks?
If you have an overdraft on your old account, you must settle it upon termination. You can either transfer the outstanding amount from your new account or consider converting it into an installment loan.
What should I consider when switching banks if I move abroad?
Within the EU, the account switching assistance is only partially available. Your old bank in Germany must provide you with all necessary information, but your new bank abroad is not obliged to assist in switching accounts. Therefore, thoroughly research foreign banks.
How long should I keep my old account after switching banks?
It is advisable to keep your old and new accounts running concurrently for a period of 1-2 months. This ensures that all payments are properly redirected and no transactions are missed.
