Canceling a Bank Account: A Guide to Easy Bank Switching
Switching to a new bank is easier than you think. Our step-by-step guide shows you how to cancel your old bank account and open a new one. With our cancellation template and sample letter for changing salary accounts, the switch becomes even easier. Don’t worry, it sounds like more effort than it really is.
Your Guide to Switching Bank Accounts: It’s That Easy
1. Compare Offers
First, get an overview of account offers on the Swiss market. The costs between Swiss private accounts vary significantly. Pay special attention to account maintenance fees, card costs, and interest rates. Use our private account comparison to compare accounts and debit cards from over 40 banks. With our side-by-side comparison tool, you can directly compare your favorites.
2. Open a New Bank Account
Once you have found a suitable account, you can open your new bank account. Especially with smartphone banks, this can be done entirely digitally, and the account is ready within 1-2 days. Once you have received your IBAN, you can transfer money to your new account.
3. Empty the Old Account
Now you can transfer your balance from your old account to your new one. Note: Some banks have withdrawal limits. Adhere to these limits to avoid penalties—it is advisable to transfer multiple partial amounts to the new account. Your bank may charge a fee for account closure (settlement). Ensure you leave this amount in your account.
Note: Savings accounts often have stricter withdrawal limits than private accounts. Without observing the notice period, only a limited amount can usually be withdrawn.
4. Change Outgoing Payments: Standing Orders, eBill, and Direct Debits
Switch all your standing orders (e.g., rent), eBill, and direct debit procedures (LSV) to your new account. This ensures that you continue to pay your bills (health insurance, subscriptions, insurance, credit card, public transport subscription, etc.) on time.
If you have saved your old bank card as a regular means of payment, you must update the payment information with your new bank card (e.g. SBB, Disney+ or Spotify).
5. Notify of Incoming Payments: Employers, Insurance Companies, etc.
Inform all important parties about your new account, especially your employer. Also, think about other regular income sources, insurance companies, or the tax authority. If you receive pensions, notify your pension fund and the AHV compensation fund.
6. TWINT
If you use TWINT with your old bank, you should delete this TWINT account. The deletion process differs from bank to bank. Download the TWINT app of your new bank if available.
7. Close the Bank Account
Generally, the bank account can only be closed after you have terminated all standing orders and direct debits. Once you have transferred all your money from your old to your new account and all parties are aware of your new bank relationship, you can finalize the bank switch. The cancellation procedure varies from bank to bank. The cancellation can be done in writing, by phone, or sometimes directly online via e-banking.
Download any documents you still need, as your eBanking access will be blocked after the cancellation has been completed.
Tip: Avoid unnecessary account fees by balancing your account before the next fee period.
8. Control
After a month, check whether the switch went smoothly: Has your salary arrived in the new account, the rent paid, and the health insurance bill settled?
Sample Letters for Bank Account Cancellation and Salary Account Change
Sample Letter for Changing the Salary Account
Inform your employer about your new bank account to ensure future salary payments are made to the correct account. With our sample letter for changing your salary account, you can quickly and easily inform your employer about your new salary account.
Sample Letter for Bank Account Cancellation
For banks where telephone or digital cancellation is not possible, you must cancel in writing. Some banks provide a form for this purpose. If there is no such form, you need to write a cancellation letter yourself. With our sample letter for canceling your bank account, you can prepare the account cancellation quickly and easily.
Conclusion – Bye-bye High Fees
Switching banks is much easier than many think and can help you save a lot of money. With our step-by-step guide, you can make the switch without any problems. So why wait? Compare the different offers and find the account that best suits your needs.
Welcome Offers 🚀 Starting credit and moreSome banks sweeten the switch with welcome offers (e.g., start-up credits). We refer to current offers in the comparison and the offer overview. Learn more |
Frequently Asked Questions
Why are many Swiss people reluctant to switch?
In Switzerland, many bank customers remain loyal to their bank - often for life. This is despite the fact that switching banks can quickly save hundreds of francs a year. Loyal bank customers are a lucrative business for banks, as a quick comparison of interest rates shows: although interest rates have been raised by the National Bank, most banks have been reluctant - if at all - to give their customers a slice of the interest cake. Hardly any of the traditional banks have shone with particular generosity.
But why do so many Swiss remain loyal to their bank despite low interest rates and excessive card and account fees? In the past, customers had to put up with high fees, as competition on fees in Switzerland was paralysed by agreements until the 1990s. Thanks to external pressure from Europe, the "gentlemen's agreements" came under pressure, but the market was still a long way from a fierce price and innovation war. Only the emergence of smartphone banks has revitalised the market with real competition. Neobanks such as Yuh do not see themselves as bound by the old order and are shaking up the Swiss financial landscape with favourable offers and innovative functions.
However, many Swiss bank customers remain loyal to their main bank despite the new competition. The Swiss are lazy when it comes to switching banks. Many would rather continue to pay excessive fees than have to deal with cancelling their banking relationship. However, the allergic reaction triggered by the thought of the dreaded paperwork is unfounded. In this guide, we show you how to cancel your bank account and open a new one in just a few steps.
