Changing Banks When Moving Out of State: A Step-By-Step Guide

Susan GuilloryUpdated April 21, 2025

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Moving to a new state brings plenty of change — and your banking needs are no exception. While some national banks offer easy transitions, others may lack convenient locations or services in your new area. Changing banks ensures continued access to your money and financial tools. Keep reading to learn everything you need to know to switch banks smoothly, from choosing a new financial institution to updating direct deposits and recurring payments.

Can You Keep Your Bank Account if You Move to Another State?

Yes, you can keep your bank account if you move to another state. However, if your bank doesn’t have branches in your new state, you won’t be able to conduct business in person. If you want to apply for a loan or deposit cash at a branch, you’ll want to open a new account at a different bank.If your bank is 100% online, however, there’s no need for you to close this account and open a new one, since location is irrelevant for an online bank.If you do decide you want to change banks when moving out of state, here are the steps to do so.

Step 1: Research New Banks

The first step in how to change banks when moving out of state is to decide what bank you will use in your new home. Start by seeing what banks have locations in your new town. If you don’t need in-person access to a bank, consider opening an account online with an online-only bank.See where the closest branch of a bank is if you need to visit a branch for services regularly. If you’re in a big city, a bank with one branch 30 minutes away probably isn’t what you’re looking for.Take your time comparing banks and accounts to find the right fit for your needs. One perk of opening a new account with a new bank is that you may be able to get higher interest on savings accounts or lower fees on a checking account. Some banks may also offer incentives to new customers, such as a cash bonus if you deposit a certain amount of money.Recommended: Guide to Switching and Changing Banks

Step 2: Open a New Account

When it comes to opening a bank account, you may be able to take care of this online before you move. However, the bank may require you to come to a branch in person to open the account. Find out what you’ll need to open the account, which may include one or two forms of photo ID, your new address, Social Security number, and details of your old bank account if you want to transfer funds.While you’re there, consider what other types of accounts you might need, such as a money market or high-yield savings account. It may be easier to open all the accounts you want at the same time.

Step 3: Transfer Funds and Set Up Automatic Payments

The next step is to transfer your funds from your old account to your new account. Start by linking bank accounts so that you can transfer funds. It may take a few days, so allow for the time.Before you transfer all your money out of the old account, check to see if you have any automatic payments scheduled to be debited from that account. The last thing you want is for a debit to process with no money in your account.Don’t forget to let your employer know that you’re switching banks, too, so your direct deposit for your paycheck can find you.Review any websites where you might have saved your old debit card information for payments and update it with your new card details. Don’t overlook your mobile wallet, as well.Once you’re certain you’ve cleared all payments, transfer all the money to the new account.

Step 4: Close Your Old Accounts

The next step is closing your old bank account. Find out from your old bank what the process is to close your accounts. You may need to go to a branch in person, so plan ahead before you leave the state. You may also be able to write a letter stating your intent to close the account. Be aware that some banks may charge a fee to close your account.While you may not have to close your account, it could be a good idea, especially if you are charged a fee to use it. Once that fee kicks in and you have no money in the account, you risk going into overdraft and having additional fees. Recommended: Closing a Bank Account Early: Fees You Should Know About

Tips for Moving Your Money to a New Bank

When switching banks, thoughtful planning can make the process smoother and help you avoid missed payments or access issues. Here are a few key tips for moving your money to a new bank:

Review your automatic payments and direct deposits to ensure nothing is left behind.
Keep your old account open temporarily until all transfers have cleared.
Transfer money in stages to maintain access to funds throughout the transition.
Monitor both accounts closely to catch any unexpected fees or issues.
Destroy old checks and debit cards once the switch is complete for security.
Consider getting a new credit card at your new bank to simplify your finances.

The Takeaway

Changing banks when moving out of state doesn’t have to be complicated. With some preparation and organization, you can ensure a smooth transition while maintaining uninterrupted access to your money. By researching new banking options, updating automatic transactions, and closing your old account responsibly, you’ll set yourself up for financial stability in your new location.If you’re looking for a new bank account, Lantern by SoFi can help. Our online banking marketplace makes it easy to compare annual percentage yields and choose a bank account that’s right for you.Compare high-interest savings accounts with Lantern by SoFi.

Frequently Asked Questions

Do I need to switch banks when I move?

What to do with bank accounts when moving out of state?

Can you bank in one state and live in another?

Photo credit: iStock/Prostock-Studio

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About the Author

Susan Guillory

Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.

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