How to Move Your Savings to a New Bank

Moving savings is mostly about order of operations: fund and link the new account first, move the balance, then close the old one with written confirmation in hand.

Moving a savings balance to a new bank is a manageable job, but the order of operations matters. Close the old account too early and you can strand automatic transfers or trip a minimum-balance fee. Leave it open and forgotten and the money can eventually end up with the state. This walkthrough follows the sequence that avoids both problems: open and fund the new account, link the two banks, move the money, redirect anything automatic, then close the old account and keep the paperwork.

Step 1: Open and Fund the New Account First

Do not close the old account before the new one is up and running. Banks are required to verify the identity of each customer who opens a new account, so expect to provide personal details and identification during the application.

Before you apply, confirm the new bank is legitimate and insured. The FDIC’s BankFind Suite lets you look up a bank by name, certificate number or web address to check that it is FDIC-insured. Coverage is automatic when you open a savings account, money market deposit account or CD at an insured bank, and the standard protection ceiling is $250,000 for what one person holds at a single institution. Jointly held money is measured by its owners, and any balances you already keep at the new bank count toward the total, so check where you stand before moving a large sum. The FDIC’s Electronic Deposit Insurance Estimator can help, or you can call the FDIC at 1-877-275-3342 with coverage questions. Our explanation of how FDIC insurance works covers the rules in more detail.

Step 2: Link Your Accounts and Verify Small Deposits

To move money between banks electronically, you will link the two accounts, which means having the routing number and account number for each one on hand. When you add an outside account at the new bank, many institutions verify that you own it by sending two small trial deposits. That verification often takes one to three business days, though some banks can confirm major institutions online in under a minute.

Enter the numbers carefully, then check them again before you submit anything.

Be wary

Bank-to-bank transfers are hard to reverse once they are complete. A single transposed digit in an account number can send your savings somewhere it should not go, so verify the details twice before the first transfer.

Step 3: Check for Withdrawal Limits and Transfer Minimums

Savings accounts come with rules that checking accounts usually do not. A bank or credit union can cap how many times each month you can pull money out of a savings account, whether by withdrawal or by transfer. Go past that cap and the institution can charge what it calls an excessive use fee or a withdrawal limit fee, and in some cases each extra withdrawal costs more than the last. Moving your entire balance out can generate several transactions, so check how many the account allows and what each one beyond the limit costs.

Two other limits matter during a move. Some savings accounts charge a fee if your balance falls below a minimum, which can bite if you withdraw most of the money but leave the account open while you finish the switch. And if the new account is a money market account, know that these accounts are insured like other deposit accounts but often require a minimum deposit and tend to limit certain transactions, such as those made by check, debit card or electronic transfer. Withdrawals at an ATM, in person, by mail or by phone are usually unlimited.

Step 4: Move Your Money and Watch the Timing

You have several ways to move the balance, each with a different mix of speed and cost.

Method	Typical speed	Typical cost
ACH external transfer	1 to 3 business days	Usually free
Wire transfer	Often within 24 hours	Around $25
Cashier’s check	Depends on when the new bank releases the funds	Check with the bank
Personal check	Longer wait for funds than a cashier’s check	Usually cheaper than a cashier’s check

Federal rules under Regulation CC require banks to make deposited funds available according to set time schedules and to disclose their funds availability policies, so the new bank should be able to tell you when your money will be usable. If timing matters, for example because you want the balance earning in the new account right away, ask about hold times before you choose a method. For a closer look at the most common option, see our guide to how long an ACH transfer takes.

Step 5: Redirect Any Automatic Deposits or Withdrawals

Before touching the balance, make a list of every automatic deposit and withdrawal scheduled to hit the old account each month. If part of your paycheck or another direct deposit lands in savings, fill out the paperwork to reroute it to the new bank, and ask the payer when the first deposit will arrive.

If you have an automatic transfer from a checking account into savings, decide whether to recreate it at the new bank or rework the setup entirely. Many banks let you schedule recurring transfers where you pick the amount and the date, often weekly or monthly, and some set a minimum amount for automatic transfers. Starting with the minimum and adjusting later keeps the switch simple.

Timing matters here. Once you know the date the first deposit lands in the new account, redirect any automatic withdrawals to draw from it and cancel them at the old bank. If the flow of money starts at a checking account, our comparison of checking vs. savings accounts explains how the two account types divide the work.

Step 6: Close the Old Account the Right Way

Leave enough money in the old account to cover any checks or scheduled payments that have not yet cleared, so nothing bounces and no fees stack up. Once you are certain all automatic activity has moved and the main transfer has cleared into the new account, transfer any remaining funds and close the old account.

Ask for written confirmation that the account has been closed. This step matters more than it might seem. If an account sits open and inactive, every state has laws requiring financial institutions to turn abandoned property over to the state, usually after three to five years, a process called escheatment. A closure letter now is far easier to deal with than tracking down your money through a state unclaimed property office later.

Step 7: Keep Records Until Both Banks Confirm

Keep the closure letter, the final statement from the old bank and the first statements from the new one until you have confirmed three things: the old balance arrived intact, no scheduled transfers are still trying to pull from the old account, and the old account shows a zero balance and a closed status. If a recurring transfer was canceled at one bank but not the other, you want to catch it while both accounts are still fresh in your records.

Hold onto the paperwork even after that. If an account has been closed a long time, the bank may no longer have any record of it, so your own file may be the only documentation of where the money went and when.

If you are still deciding what kind of account should hold the money after the move, our list of savings and CD terms to know covers the vocabulary you will see in the disclosures, from maturity dates to money market accounts.

Good questions

Do I have to close my old savings account, or can I keep both?

You can keep accounts at more than one bank at the same time. The trade-off is any fees the old account charges, such as a minimum-balance fee, plus one more account to monitor.

What is the fastest way to move a large balance?

Wire transfers move money quickly, often within 24 hours, but cost around $25. ACH transfers are typically free but take 1 to 3 business days, and a cashier’s check is another option if you prefer to deposit in person.

What happens if I forget about the old account entirely?

State laws require banks to turn abandoned funds over to the state, usually after three to five years. You can still reclaim the money through the state’s unclaimed property process, but closing the account and getting written confirmation is much simpler.

When should I cancel automatic transfers at the old bank?

Once you know the date your first deposit or transfer will land in the new account, redirect your automatic withdrawals to draw from it and cancel them at the old bank. Leaving money in the old account until pending items clear helps you avoid fees.

This guide is general information, not financial or legal advice. Bank fees, account terms and screening policies vary by bank and change over time, so check the account’s fee schedule and terms before you open it. For federal rules, see the Consumer Financial Protection Bureau and the FDIC.