Steps to switch bank accounts in India

Switching between one bank account to another India is a straightforward process when done correctly. Whether you are seeking better services, lower fees or more convenient banking options, you must know how to switch a bank account in India.

Evaluate your banking needs

Before making any changes, it's crucial to evaluate what you need from your new bank. Are you looking for enhanced online banking capabilities, improved customer service or lower fees?

Identifying your primary reasons will help you select the right bank. Consider whether you need specific services like business banking or corporate banking. Ideally, you must check if the bank offers:

• Online banking facility
• Efficient customer service
• Low fees and charges
• Banking needs for business accounts (if you are a business owner)

Open a new bank account

Once you have selected the right bank for yourself, proceed to open your account. This can be done online or by visiting a branch. The documents needed for opening an account include:

• Identification proof: Aadhaar card, PAN card, passport, etc.
• Address proof: Utility bills, rental agreement, etc.
• Photographs: Passport-sized photos
• Initial deposit: Some banks require an initial deposit to open an account

Shifting to the new account

1. Transfer your money
Once you open the account and activate it, transfer your funds from the account that you intend to close via NEFT, RTGS or IMPS. You can use your former online banking platform for the transfer. If you did not have a net banking facility, you can write a cheque from your former account and deposit it into your new account.

2. Migrate repeat transactions
Update all automatic payments and direct deposits to your new bank account to avoid any disruptions. Notify your employer about your new bank account details for your salary deposits. You must also update your account information with utility providers and change the payment details for any recurring subscriptions.

3. Close the former account
Once you've confirmed that all transactions are flowing through your new account, close the old bank account, and make sure there are no pending transactions or remaining balances. The best way to close your account will be to visit the branch, fill and submit necessary forms and get closure confirmation from the bank.

Also Read: What are the pros and cons of having multiple Savings Accounts?

Conclusion

Switching bank accounts in India can be seamless if done systematically. Start by evaluating your needs, researching and choosing a new bank, opening the account, and transferring your funds. Don’t forget to update automatic payments and monitor both accounts during the transition. Finally, close your old account to complete the switch.

Axis Bank's Savings Accounts are a good option if you are looking to switch to an account with zero paperwork, digital processing, 250+ banking services and an annual interest rate of 3-3.5%. Open an account with Axis Bank today!

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.