How to change your bank account
Changing your bank account has become a much easier and faster process since the entry into force of new regulations on the transfer of payment accounts.
If until then the client had to take care of all the procedures on his own when he wanted to change an account from one bank to another, with the new law the financial institutions assume the realization of this service and must ensure that the transfer of the bank account is effective and agile.
If you want to change your bank account to any back and you still don’t know how to carry out the transfer process, keep reading to know all the details.
What do the new account transfer regulations consist of?
In 2017, the Government approved a Royal Decree-Law, on 19/2017, of November 24, on basic payment accounts, transfer of payment accounts, and comparability of commissions, to transpose into our internal legal system the content of a European Directive (Directive 2014/92 / EU of the European Parliament and of the Council, of July 23, 2014) that introduced new features in these three matters.
For the entry into force of the part corresponding to the transfer of accounts between banking entities, it was necessary to wait for the approval of an Order from the Ministry of Economy and Business, an approval that occurred in 2019 (Order ECE / 228/2019, of 28 February). In it, the account transfer procedure is developed, which highlights that, in any case, it will be free for the client.
Steps to follow to change your bank account
The first thing you have to do if you want to change your current bank account is to go to your current entity and request the transfer. If you share an account with another person, any of the account holders can initiate the application but all account holders will have to sign the document to be able to process the application.
At that time your current bank must provide you with an account transfer request form in which it will inform you of:
- The functions that correspond to both your current bank and your future bank during the different phases of the account transfer process.
- The maximum term to carry out the different phases.
- The conditions that as a client you can request to make the account change.
- The information that they will ask you to carry out the process.
- And alternative dispute resolution processes in the event of a conflict.
In addition, in this application form that you will have to fill in, it will be specified :
- The date from which standing transfer orders and direct debits (such as water and electricity bills, etc.) are made at the receiving payment service provider (your new bank). There must be a margin of at least thirteen business days with the date on which your new entity receives the duly completed form.
- Which actions (of those provided for in articles 10 and 11 of the Order of the Ministry of Economy and Business) should be carried out by the transmitting payment service provider (your old bank) and which by the recipient (your new bank).
- Incoming transfers, standing orders for credit transfers (standing orders for transfers that are issued from the account), and direct debit orders to which the transfer should apply.
- And whether or not you want to cancel the account being transferred, as well as the products and services that you have associated with it (such as credit cards, insurance, mortgages, etc.)
Remember that this process will be free for both you and your new bank.
What Bank has to do
If you are going to change your account to a bank, it will assume the role of the receiving payment service provider. When the bank receives your account portability form, a period of two business days will be opened to request the following information from your old bank:
- A list of standing transfer orders and direct debit orders in the account.
- Information is available on periodic incoming transfers and direct debits to your account in the last 13 months.
- The cancellation of standing orders from the date you have indicated in your request.
- The transfer of the balance you have in the account.
- The closure of the account on the date you have indicated and the cancellation of the products associated with it, which will occur once the entire process is completed. The cancellation of the associated products is not produced by the request, in addition, it would be necessary that on the execution date the Origin Bank will stop accepting direct debits.
- And in the event that your old bank does not have an automatic forwarding system for incoming transfers and direct debits to your new bank account, the cessation of acceptance of direct debits and incoming transfers from the date you have indicated in your application.
Once the bank receives all this information from your old entity, it will have five business days to:
- Make the necessary procedures to maintain the transfer orders and direct debits that were in your old account.
- Provide your new account information to those who used to make periodic transfers (such as your company to pay your payroll every month, for example).
What does your old entity have to do?
And what will your old bank do in the meantime? It corresponds to him, within a maximum period of five business days, from receiving the request from the bank.
- Send the requested information to the bank.
- Cancel any permanent transfer or direct debit order on your old account, as of the execution date.
- Transfer the balance in your old account to the new one on the execution date.
- Close the account (only if it has been requested) on the date you have indicated, as long as you have no pending payments on it.
It is important to know that your old bank will not be able to block your means of payment (such as credit or debit cards) before the date you have indicated in your request. Remember that it requires express cancellation. Check more interesting articles at Shaz Vlog.
Can I change banks with a mortgage?
It may happen that you want to change to another bank but you still have a current mortgage in your current entity. In this circumstance, you can make the mortgage change as long as your new financial institution makes you an offer to subrogate the mortgage.
With this binding offer, you will inform your current entity and request a certificate of the outstanding amount of the mortgage loan, which must be delivered within 7 days. Afterward, you will have to wait 15 days to be able to formalize the surrogacy. From that moment, you will be able to continue with the mortgage processing, and once it is completed, you will begin to pay the monthly installments in your new bank.
Can I change my account to Bank having a loan in another entity?
As with a mortgage, you can also change your account to a bank even if you have a loan from another bank. To do this, you will have to ask the bank for a loan refinancing service.
Through this process, our team of advisers will carry out a study of your financial profile and if the financing is approved, they will make available to you the money necessary to cancel your loan with your old entity. From then on, you will begin to return the new loan to the bank, through your new bank account at the entity.
How to change your salary or pension to Bank
Another possibility that may interest you is to change your salary or pension to Bank. To do this, all you have to do is communicate to your company the number of the new account where you want your payroll to be entered . If it is a pension, the communication of the new bank account must be done with Social Security, either in person or online.
Change receipts from another bank to another
If you only want to change the receipts that you have been paying at another bank to bank, the procedure is even simpler. You have two options to change the direct debit of receipts:
- You can carry out this procedure yourself by contacting the entities that issue you the receipts to notify them of the change, providing them with the new account number in which you want the direct debits to be transferred to you.
- Either p e can take care from the bank. For this, you will have to provide a series of data from the issuing entity so that the bank can contact it and indicate that from a certain date, direct debits of a certain service are charged to the new bank account.