Step one: Do your homework first

Make sure you research the market before making the switch. Check out the interest rate on savings, and don’t forget to check out account fees too. If you frequently go into overdraft, double-check overdraft fees. Sites like MoneyHub, Interest.co.nz and Consumer NZ’s banking satisfaction survey can help with researching a new bank to switch to.

Step two: Open your new account

This needs to be done before you start the switching process. This is also a good time to tidy up your old bank account and get rid of anything you don’t need, such as zombie subscriptions or outdated payee details.

Step three: Talk to your new bank

They’ll give you a Switching Bank Request Form to fill out. This will ask for things like:

•    your old bank’s name and your account name,
•    your old bank account numbers,
•    the date to start the payments transfer,
•    a signature for an authority and indemnity.

Then they do the magic: moving your automatic payments, direct debits, payee lists, and (if you want) your remaining balance.

Step four: Liaise with your new bank to complete the process

While the new bank does most of the heavy lifting, there are a few tasks you’ll need to look after. In particular, you’ll need to change any incoming payments over – things like giving your workplace, WINZ or any clients, your new account information. 

Staying safe

Remember, banks will never ask you for any secure details like passwords or PINS related to any bank account you hold. If someone is asking you for these, be suspicious.

And consider keeping your old account open for a short time, this is known as making a ‘soft switch’, until you’re sure everything has moved across smoothly.

Project your retirement income.