Australians are known to stick with their original banking institution due to sheer habit. We are inclined to stick with the major banking institution our parents opened an account with us in decades ago. However, this misplaced loyalty may be costing you better interest rates, banking applications, or lower fees for maintaining your accounts. 

You may feel apprehensive about moving your hard-earned money to another banking institution. You are definitely not alone in this case. You may think that it is going to be a logistical nightmare to move your money to another institution. You may think it is going to involve too much paperwork and your bills may be unpaid.

It is actually much easier to move your money to another institution than it used to be. The banking sector in Australia has gone out of its way to simplify this process to encourage healthy competition among the major banking institutions and smaller banking applications. In this post, we will guide you through the process of how to change your banking institution.

A Simple Guide to Switching Your Bank

It only takes a few minutes to open a new bank account with ING Australia, for example. You may need your driver’s license, Medicare card, or your passport to verify your identity. You can then transfer your existing money to your newly opened bank account. It is highly recommended to leave your original bank account active. You may leave some money in your original bank account in case of any unexpected late payment charges.

Navigating the Switch of Regular Payments Service

You don’t have to update all your individual utility bills, gym memberships, etc., individually. Australian financial institutions offer a service that can transfer your regular payments. Under this industry-wide service, your new financial institution can request a comprehensive list of your regular direct debit and credit payments from your old institution for the last thirteen months. They can then assist in migrating your regular payments directly to your new financial institution. All you have to do is sign a specific form giving your new financial institution permission to act on your behalf.

Overcoming Common Transition Hurdles

Some payments cannot be transferred using the standard switching service. You’ll have to update your streaming services, food delivery apps, online shopping accounts, etc., which directly charge your debit card number instead of your BSB and account number. Also, your new financial institution needs to update your details with your employer as soon as possible to receive your next salary payment on time. 

You’ll also have to update government agencies such as the Australian Taxation Office and Medicare using your myGov account. Looking through your bank statements for the last three months can also help you remember any annual subscription payments you forgot to update before you formally close your old account.

Securing Better Financial Returns Today

Taking a small amount of time to switch your financial service provider could result in substantial long-term financial gains. You could possibly obtain a much higher percentage of interest on your savings account or even get rid of any unwanted fees on your account. If your financial service provider is not rewarding your continued loyalty, then switching your account to a competitor is a smart and highly effective financial move. Begin your transition today by comparing financial products in Australia that could allow you to save even more money in your wallet!