Wednesday, 12 December 2012

Post settlement - changing bank accounts

The Millionaire on Heels has lots of bank accounts.  I’ve accumulated them due to previous home loan providers, a one off need for a high interest account, you name it.  And then they’re difficult to close, or you just need the account on the once in a blue moon chance you need to write a cheque.

If you are like me, by streamlining your bank accounts, you can:
  • Reduce fees (if you have any … if you do, you should really bank elsewhere, as there as hundreds of financial institutions with no-fee accounts)
  • Reduce paperwork – all the account statements, etc. in the mail each month or quarter
  • Reduce the hassle of adding up all your tiny balances to track your savings or at tax time
Some people find it challenging to move accounts because they have direct debits hanging off their accounts.  If this is the case for you, the government has introduced banking reforms from 1 July 2012 that are supposed to make the switching process a lot easier.  Basically, you can ask your new bank to help.  This article describes the process:
https://www.moneysmart.gov.au/managing-my-money/banking/switching-bank-accounts