Switching to a New Bank for Savings Account? Consider These Tips

Before opening a bank account, there are a few of things we should consider – interest rates, convenience & service quality. But, at times, we end up opening an account that falls below our expectations. Lower interest rates, slow app, bad experience at bank branches – all these reasons could add up to your dissatisfaction. 

In such instances, it’s better to switch your primary savings account to a new bank. But while the idea sounds simple, the actual switch requires more than just opening a new savings account. Your salary, your bills, your EMIs, your subscriptions—everything flows through your bank account. To move smart, you need a plan that ensures zero disruptions and maximum gain.

This step-by-step guide will help you switch banks with clarity, control, and confidence.

Tip 1: Open the New Account First—Set It Up Right Before You Move Anything

The first and most critical step is to open your new account before making any other changes. Think of it as laying the foundation before shifting everything on top.

What to look for in a new savings account:

• Higher interest rates – Especially if you tend to maintain higher balances (e.g., ₹5–10L+). For example, Ujjivan SFB offers up to 7.25% p.a. Interest (*T&C apply), on Saving Accounts.
• Low Monthly Average Balance (MAB) – This reduces the risk of penalty charges.
• Strong digital infrastructure – UPI support, a secure mobile app, quick customer support, and clean UI matter more than ever.
• Faster onboarding –Banks like Ujjivan SFB offer completely paperless onboarding with Digital Savings Account.

How to Set up

1. Apply for a savings account online through the bank’s website or mobile app, or visit the branch if preferred.
2. Submit basic documents
3. Complete Video KYC if opting for a digital account.
4. Once you open the account, activate your debit card, set up internet/mobile banking, and link the account to your phone number.

Test every basic feature:

• Log in to the mobile app and net banking
• Set up UPI with your preferred apps
• Perform a small fund transfer or QR payment to confirm it works

Why this matters:

Jumping the gun and closing your old account too early can result in missed EMIs, rejected UPI payments, or delayed salaries. Before you touch your income sources or auto-debits, ensure your new account is 100% functional.

Quick Checklist Before Proceeding:

• Debit card received and activated
• Mobile & net banking set up
• UPI ID is linked and working
• Test transactions successful

Once this is in place, you're ready for the next step—migrating your payment ecosystem.

Tip 2: Update Your UPI Apps, Digital Wallets, and Linked Platforms

Now that your new account is live and tested, the next step is to disconnect your financial activity from the old account and reconnect it to the new one.

This includes UPI apps, payment wallets, and online banking tools—basically anything that pulls or pushes money. Test each app with a small transaction to confirm UPI and auto-debits are functioning.

Pro Tip: UPI platforms allow you to manage multiple bank accounts. Keep both accounts active for a while to smooth the transition.

Tip 3: Transfer and Reassign All Auto-Debits, Billers & Mandates

This is where most people make mistakes—forgetting a single EMI or subscription can result in penalties or service disruptions. You need to carefully map and migrate all standing instructions and automatic deductions to your new account.

Start with Reviewing:

• Loan EMIs – Personal loans, education loans, vehicle loans, or buy-now-pay-later services.
• Investments: In case you have mutual fund or other investments linked to your previous account.
• Insurance premiums – Health, term life, or ULIPs with ECS mandates.
• Utility bills – Electricity, broadband, gas, mobile recharges.

What to Do:

1. Open your old bank’s past 2–3 months of statements and list out all recurring payments.
2. Visit each service provider’s website/app and update the payment source to your new bank account or UPI ID.
3. Where applicable, cancel the old NACH or ECS mandates from the old account.
4. Set up new Standing Instructions (SIs) or Auto-Debits from the new account.

Pro Tip: Use a spreadsheet to track what’s been moved and what’s pending. Give yourself 2 weeks of overlap to avoid missed payments.

Tip 4: Transfer Your Balance and Monitor for Leftovers

With all incoming and outgoing activity redirected, it’s time to move your money.

• Transfer the bulk of your funds from your old account to the new one using NEFT, IMPS, or UPI.
• Leave a small buffer (₹1,000–₹2,000) in the old account temporarily. This amount can cover pending refunds, forgotten auto-debits, MAB requirement or failed mandate notifications.
• Monitor both accounts for 7–14 days for stray activity or alerts.

Pro Tip: Use this window to test that everything now flows smoothly into the new account before final closure.

Tip 5: Close the Old Account (Optional but Ideal)

If you’re confident that everything’s switched over, and the old account no longer adds value—close it. The choice is yours completely.

Final Checklist: Did You Switch Cleanly?

Use this quick list to confirm your transition is complete:

• New savings account opened and is active
• UPI + mobile banking fully tested
• All auto-debits, mandates, and SIPs updated
• Wallets, payment apps, and subscriptions updated
• Old account closed or kept intentionally