📋 Table of Contents
How to Switch Savings Accounts
Switching savings accounts is simpler than switching checking, since there are typically no direct deposits or autopayments linked directly to a savings account — mainly just a transfer of funds and updating any automatic transfers.
The Switching Process
| Step | What to Do |
|---|---|
| 1. Open new account | Complete signup at the new bank |
| 2. Link accounts | Connect old and new accounts for transfer |
| 3. Transfer funds | Move balance to the new account |
| 4. Update automatic transfers | Redirect any recurring savings transfers |
| 5. Close old account | Once the transfer is confirmed complete |
Why Switch Savings Accounts
The most common reason is chasing a better rate — since savings rates are variable, periodically comparing your current bank against competitors can reveal a meaningfully better option.
Timing Considerations
Interbank transfers typically take 1-3 business days — plan the switch with this timeline in mind, especially if you have any pending automatic transfers scheduled.
Common Mistakes
Not updating recurring automatic transfers (like a scheduled paycheck-to-savings transfer) before closing the old account, which can cause a transfer to fail.
Frequently Asked Questions
Generally no — opening a new savings account and transferring funds is typically free, though check for any account closure fees at your old bank.
At least annually — savings rates are variable and can change, so a periodic comparison ensures you're not leaving meaningful interest on the table with an outdated rate.