How To Switch Banks
Have you been thinking of getting a new current, savings, or investment account but are not sure of how to go about it? Or, you have been considering leaving your old bank for a new one but are in doubt about the best options on the market. Read this post to learn how to switch from a traditional bank to a neobank.
Why should I switch banks?
Switch banks when you feel unsatisfied with the services of your present bank. You can also leave your old bank behind and open an account with a new one when you have changed your location or banking preferences. There are many benefits that you can get when you switch from a traditional bank to a neobank. They include but are not limited to, the facts stated below.
Save more and earn more
Neobanks are better than traditional banks when it comes to getting help with controlling your expenses by budgeting and putting funds aside for later use. Through their digital products and services, neobanks encourage people to spend wisely and save money in return for higher interest rates than traditional banks.
Bank 24/7 using your mobile phone
Traditional banks operate through physical branches that have opening and closing hours. This system prevents you from having unlimited access to your bank account. What's more, it could get you frustrated when you need to make an urgent payment or resolve an issue with your account during non-working hours. . Also, some traditional banks do not work on weekends—Saturdays and Sundays—in some countries. On the other hand, neobanks use the internet to operate online and on mobile apps to provide 24/7 services to their customers. They let you have continuous access to your money via your smartphone.
Pay lower fees
Most traditional banks ask you to pay different types of fees. The total cost could be difficult to keep up with because the charges are not always easy to understand. Neobanks have been able to reduce these fees by operating without physical branches and by introducing innovative ways to bank and feel happy. You can get savings and checking accounts, educational or budgeting apps, payment and money transfer services, and a lot more at very low fees when you switch to a neobank.
Get personalised services
Do you travel frequently and often have to spend in different currencies? If your response to that question was “Yes,” then get an account with a neobank. Traditional banks find it difficult to design their products and services to fit the kind of flexibility that digital nomads, freelancers, travelling entrepreneurs, and expats need to succeed in their professions. They face this problem because they depend on their physical branches to serve their customers. On the other hand, neobanks are leveraging the internet and other modern technologies to make receiving, saving, spending, and investing money easier for everyone.
Most traditional banks are not crypto-friendly. They are controlled by central banks and are permitted to handle transactions in national fiat currencies, such as EUR, GBP, USD, and others. But many neobanks allow you to deposit, withdraw, hold, and invest in Bitcoin and other cryptocurrencies. Therefore, if you want to have a crypto account or bank with your cryptocurrencies, create an account with a neobank that supports this kind of digital currency.
Best neobanks to consider
Not every neobank on the market is safe, secure, and reliable to open an online bank account with. For your safety, you should try not to fall into the hands of internet fraudsters or financial institutions that are not regulated and do not operate under high standards. That is why we have put together a trustworthy list of the best neobanks worth considering today. Whether you are in Europe, the United Kingdom, the United States, or any other country, you can switch from your traditional bank to one or more of the neobanks we have listed below. We are sure that you will benefit much from their attractive products and services, and your banking experience will get better with them.
In a few minutes, you can create a fully regulated UK bank account with Starling Bank and enjoy 24/7 customer support. It is an award-winning neobank for UK residents. Switch to Starling Bank to have a personal IBAN account, a joint account for shared spending, or a business account. It also has personalised current accounts and bank cards for those who have kids and teens.
Atom bank is the first app-based bank in the United Kingdom. It puts its customers first and keeps them smiling with high-quality customer service, savings accounts with competitive interest rates, attractive mortgage accounts, and affordable business loans. Change your traditional bank to Atom bank to earn up to 2.40% interest annually for saving your money.
Switch to N26 to get loans with which you can split your payment for items bought at a price between €20 and €1000 into three to six monthly instalments. Other benefits you can get from this neobank include a free instant bank account, a free virtual card and a paid plastic card at a delivery fee of €10 (both from Mastercard), overdraft, and insurance. You can read our review of N26 to learn more about it.
Chime is a neobank that is ideal for people in the United States. Nevertheless, its Visa debit and credit cards can be used in the United Kingdom, France, Germany, Nigeria, South Africa, and many other countries where Visa is accepted. It offers three types of accounts: Checking, Savings, and Credit Builder. It can be used to make domestic payments and international money transfers. Switch from your traditional bank to Chime to use its SpotMe product to enjoy a free overdraft of up to $200 on purchases made with its Visa debit card. Besides, with the Chime Credit Builder credit card, you can build credit and improve your credit score. It has no annual fee, no interest, and does not require you to make a minimum security deposit.
You can move from your traditional bank to bunq. It is a European neobank that has its headquarters in Amsterdam, Netherlands. Through its four fantastic products—Easy Bank, Easy Savings, Easy Money, and Easy Green—bunq offers several accounts to a wide variety of customers, ranging from regular savers to environmental sustainability advocates. One of the smartest ways to save money and time on instant payments today is to use the Easy Bank product from bunq, which lets you create a mobile bank account in five minutes, and even get an IBAN. bunq enables you to make 3D Secure payments and protects your deposit up to €100,000 with the Dutch Deposit Guarantee Scheme. There is more to learn about bunq on our website.
Monzo is a great choice for anyone looking for a bank that allows them to make buy-now-pay-later transactions as well as use cryptocurrency exchanges. It has its head office in London, the United Kingdom. Monzo is a neobank that lets you create bank accounts, save in pots, split your bills, track your expenses, send money locally and internationally, own Mastercard cards, and make payments in three instalments using your mobile phone. It has accounts for individuals, couples, and businesses, as well as loans and overdrafts. Switch to Monzo today for flexible and convenient digital banking.
Current is a US-based neobank and FinTech company that is shaping the future of banking through modern technology. Create an account with Current to own a basic mobile account for adults or a special account for teens to learn to manage a budget. It also lets you own a Visa debit card, earn a 4% annual percentage yield on your savings, and get up to a $200 fee-free overdraft. In addition, its customer support is available 24/7.
Monese is a money app and neobank that claims to bring you peace of mind. It lets you get simple credit, instant top-ups, and up to three accounts in euros, British pounds sterling, and Romanian leu. You can also use its Mastercard debit card to make payments and ATM withdrawals in any country where Mastercard is accepted. Switch to Monese today to get instant IBAN and UK checking accounts, joint accounts, and savings pots. Your company can also benefit from using a Monese Business Account.
The last on our list is Revolut. It is known as the all-in-one neobank. It is one app that is capable of taking care of almost everything you can think of when it comes to banking and finance. It is great for easy money management and excellent for sending money abroad as well as investing in stocks and valuable commodities. Revolut also allows easy access to the stock market, supports payments in over 150 fiat currencies, lets you invest with as little as $1, and provides its customers with a Mastercard card. What’s more, you can use Revolut to buy, hold, and sell cryptocurrencies with no hidden fees. Interested in finding out more about this super app? Read this honest review of Revolut on our website.
How long does it take to switch banks?
In nearly all cases, it takes less than five minutes to switch from a traditional bank to a neobank. This is possible because you do not need to transport yourself to a physical location to register an account with a neobank. Besides, there is no brick-and-mortar office where you might find an employee of a digital-only bank to help you register an account with them. Instead, you will have to do the switch yourself or contact their online support team for any assistance with the account registration process. So, switching banks is a very fast and convenient process.
How do I switch banks?
Switching from one bank to another is very easy. You just need to electronically move the money in your old account to the new one. You can use SEPA, SWIFT, or any reliable money transfer app to make the switch. If you do not know which method is right for your financial situation, read about the differences between SEPA and SWIFT and the apps that work best with them in a previous post on this blog.
When can I switch banks?
If you do not have an account with any of the neobanks we have listed above, the right time to switch your banks is now. Traditional banks are likely to remain relevant in society because not everyone has adequate digital education to use neobanks. Nevertheless, based on the current banking trends, the future of banking will be dominated by neobanks. So, if you know how to use a smartphone, you should start banking with a neobank today in preparation for the future. Besides, the benefits of taking this action cannot be overemphasised. We told you about them at the beginning of this article.
Switch banks and be happy!
Traditional banks are not flexible and innovative enough to meet the changing needs of today’s customers. Hence, neobanks have come to challenge them and make customers happy with new products and services. So, to bank conveniently, spend less money on fees, and earn more from interest, sign up for an account with any of the neobanks we have listed in this post.