Is it possible to switch banks with a loan in progress?
The relationship with the banks has become more dynamic, thanks to the possibility of being able to take advantage of the bank exchange, even with a loan in progress, payment of mortgage repayments, etc. What is certain is that today no one can be forced to keep a checking account with a bank simply because they have a loan or a mortgage. But what should push the bank to change?
Simply savings and convenience. With the arrival of many free and effective current accounts, keeping a current account open with medium-high costs, involves ‘throwing away’ several tens of euros, up to, without difficulty, even a hundred or more.
Why and when to change bank
Before seeing how to make a bank change with a loan in progress, which might seem to be the biggest obstacle to a process that is rather simple, let’s see for what reasons this possibility should be taken into consideration.
Especially at the end of the year, or at the end of each quarter (when the competencies are liquidated) instead of putting the statement that the bank has to send into the drawer, a more accurate reading should be given to the various expense items. In particular it is necessary to check:
- costs for mandatory communications (these are current accounts that send them for free and always);
- ATM fee (should be free);
- cost charged for operations (you can have an unlimited free number);
- cost for withdrawals (some banks always withdraw free of charge);
- costs of custody (do you have a credit? How much does it cost even if it is not used)?
- credit card cost;
- costs applied to bank transfers, rebates, etc;
- presence and amount of a monthly account management fee, what it includes and how much it costs.
If there are items of expenditure that are rightly considered excessive (and the nasty surprises are not lacking), then you can find an adequate response by choosing from some current accounts that have become very popular precisely because of the quality at low cost (if not even null).
Guide to moving the account
The long waiting times foreseen for the transition from the old to the new account, which often involved a duplication of costs, are now an old story. According to the new provisions, in fact, a bank should not take more than 12 days, or else you are entitled to compensation. Having said that, in the case of still open situations, what should be done to avoid delays, troubles and inconveniences especially in the case of a bank change with a loan in progress?
The first thing to do is to choose a ” dynamic ” bank for the implementation of account removal procedures, as it will adapt to changes very quickly. In this context we find mainly online banks, such as Mecka bank, Eurila, or even Onecredit and bankate.
Once this is done, the simplest procedure is:
- opening of the new current account (if you choose to open online the process is much faster then you can activate the removal procedure almost immediately);
- in an open account you have two options: go to the branch and fill out the special removal form (not recommended especially because delays were recorded due to problems related to paper use and because it involves the hassle of going to the bank and perhaps having to wait for the turn in a row); click on the special ” move ” function, bank change or similar wording in internet banking (safer and faster);
- make sure you personally transfer the very few features, arrangements or operations that are not provided for. These are generally the pension and the Telepass (for the latter there are applications that have announced the possible transfer as Widiexpress ).
Therefore, the bank change with a loan in progress requires that the installments to be repaid to another bank or financial institution be moved with the rest of the procedure which moves all the permanent payment services in and out. The applications of the best internet banking services also include the possibility of transferring only the selected transactions. If, however, the goal is to save, then the result is obtained by moving the whole and closing the previous relationship.
For security, at least for the first month, it is necessary to check that the system has ‘taken’ the payment of the loan, especially in the case of short time frames (for example if you change the bank with a loan in progress near the expiry date) of the same installment).