To merge bank accounts from different banks you need to link both of the accounts using your online banking system or manually. Then choose one account with the best features and transfer all your money into the chosen account. Lastly, close the other account.
Looking for a way to combine your bank accounts into one individual one? Or trying to merge your accounts from different banks as a couple?
Well, merging bank accounts from different banks can be pretty complicated. As different banks have different policies.
However, I have got your back. Because I have helped a lot of my clients combine their finances and merge bank accounts from different banks.
So, in this article, I am going to provide a step-by-step guideline on how to merge bank accounts from different banks along with everything related to this topic. So, stick here till the end.
But before diving into how to merge bank accounts from different banks, first, let’s find out can you merge bank accounts?
Can You Merge Bank Accounts From Different Banks?
Yes, you can merge bank accounts from different banks. However, you can not create a single joint account from the two bank accounts of the different banks.
So, if you are merging the bank accounts as a couple and want to create a joint account then you need to close one account from the two bank accounts. Before closing the account you need to transfer all the money from the closing account into the other one. The same applies to individual persons.
But how do you choose which account to keep and how to merge bank accounts?
Let’s find out.
How To Merge Bank Accounts From Different Banks
To merge bank accounts from different banks you need to link both of the accounts, transfer all your money into one of them then close the other account.
So, is it that easy?
No, because to get the most out of this combining process, you need to consider a few factors. It will make this merging process more profitable and seamless for you.
Things To Consider Before Merging Bank Accounts From Different Banks
Here are the things you must consider before merging your bank accounts from different banks
1. The Type of Bank Accounts
The first thing you should consider is the type of your accounts. Because there are different types of bank accounts like checking accounts, saving accounts, Money market accounts, and certificate of deposit accounts.
Now as you are trying to merge your bank accounts then you probably have a checking account or saving account, or a money market account. If both of the accounts from different banks are the same type of accounts then there is no issue.
Otherwise, you need to consider the second factor.
2. Understand Your Purpose For The Merger
You need to understand whether the merging of the accounts is for transactional purposes or for saving purposes. For example, you have one checking account while another saving account and the purpose is saving. Then you should choose the savings account and close the checking one.
If you have a money market account, then no worries. Because it serves both as a checking and savings account.
3. Find Out Which Bank Account Has More Direct Debits
To make the merger of bank accounts more seamless you need to find out which bank account has more authorized direct debits.
Then find the bank account with more direct debits. As a result, If you choose it, you don’t need to change all of your auto-pay settings and none of your scheduled payments will be disrupted.
4. Observe All the Details of the Bank Accounts
Lastly, you need to observe every little detail of your existing bank accounts. This process will include finding out which has more maintenance costs, more interest rates, more online banking facilities, and ease of use.
Now that we have considered the factors. So, it’s time to choose one account. But how?
Choosing One Bank Account From Existing The Two Bank Accounts
To choose the most convenient account for yourself, please follow the below instructions
- Choose the bank account with less operating cost.
- If your account is for saving purposes then select the bank account with the high-interest rate or APY.
- If you are choosing for transactional purposes then go for the checking account with less transaction fee. ‘
- Pick the account with more direct debits so that you don’t need to take the hassle of changing all your payment details.
- Go with the one having more incentives.
- Choose the bank account with more online banking facilities and better customer care facilities.
- If you have debit cards with the existing accounts, choose the one with more facilities and ease of use.
Well, by now you might have noticed all the factors and chosen one account from your bank accounts from different banks. At this time let’s have a look at how to merge bank accounts from different banks.
Step By Step Process Of Merging Bank Accounts From Different Banks
Merging bank accounts from different banks might seem confusing. But if you follow this step- by step guideline properly then it will be a piece of cake.
Step 1. Clear Unpaid Balances Of the Closing Account
Before merging the accounts, look at the finances of the account you want to close. Find out if the balance is negative or not. If it’s negative then settle all the unpaid balances. Otherwise, the bank won’t let you close your account.
Moreover, if the account is kept in a negative balance for a long time then it will be sent to the collection. This will hurt your credit score.
Step 2. Set Up The Direct Debits and Deposits With The Remaining Account
You might have direct deposits and debits with the closing account. Check them out and update your direct deposits and debits with the remaining bank account.
Some auto-pay services and direct deposits might take up to 2 months to update. So, wait until all your auto pay and direct deposits are connected to the remaining bank account. Otherwise, some bills won’t be paid and your closing bank account might get a negative balance without you noticing.
Step 3. Transfer All The Money From The Closing Bank Account
After successfully completing the above 2 steps, it’s time to transfer all your money from the closing bank account to the remaining one. You can transfer your money either using a check, using an ACH transfer online, or a wire transfer.
If you want to wire transfer then you might have to link your bank accounts to transfer.
Step 4. Close The Chosen Account
Closing a bank account might seem like a lengthy and complicated process. But if you have done all the above steps successfully then it’s a straightforward process.
To close your chosen bank account contact your bank. If everything is alright and you have no pending transactions then your bank will close the account within a few working days.
The closing process can be online or offline depending on your bank. Moreover, if you close the account within 90-180 days of opening then you might need to pay a $25 fee depending on your bank policy.
Lastly, in case you are merging bank accounts from different banks as a couple then contact your existing bank and add your spouse to the account.
Now it’s time to look at some frequently asked questions related to this topic. Here is a simple infographic for better understanding.
How To Merge Bank Accounts From Different Banks Infographic
Is Switching Banks Easy?
Yes, switching banks is a simple and smooth process nowadays due to agreements between banks. However, before switching, banks make sure you have no negative balance. Because if you have a negative balance then the process might get complicated.
How Long Does It Take To Close One Bank Account?
If everything is alright then a bank can instantly close your account. However, different banks have different policies. So, closing a bank account might take a few working days. Moreover, if you are closing an account too early then you might also need to pay a fee depending on your bank.
Can You Combine Bank Accounts Online?
Though it’s possible to combine and create a joint bank account online in some banks. However, both of the accounts have to be in the same bank.
Combining bank accounts can be a long and tiring process. So, many banks offer this service online. You can do it by calling customer service. Some banks even offer it on their website or app. However, not all banks offer it. So, if you are looking forward to combining bank accounts. Please call your bank customer care and ask if they offer this service or not.
Does Closing A Bank Account Hurt Your Credit?
No, closing a bank account won’t hurt your credit. However, if you try to close a bank account with a negative balance or do not settle the unpaid balance then your account details will be sent to the collections. As a result, your credit score will be hurt.
This is everything you need to know about how to merge bank accounts from different banks. However, if you don’t have an id or bank account but want to open a bank account then check out our article on opening online bank accounts without an id.
Merging bank Accounts from different banks is a straightforward process. However, before closing one bank account make sure you have no unpaid bills. Otherwise, it will cause you trouble later.
I hope our article on how to merge bank accounts from different banks has helped you with your issue. If there is any confusion, please let us know in the comments.
Lastly, before making any big financial transactions or decisions, I highly suggest you consult with a professional financial advisor.
That’s it for now. Have a great day!