Switching Banks

Switching banks used to be a bureaucratic nightmare, which is why most of us stayed with the same bank for years even when unhappy with it. The "bank switch in a click" reform changed that completely. This guide explains how it works today.

Disclosure: Educational information only. Any action you take is your own responsibility.

What the reform did

The reform turned switching between banks into a simple and automatic process. You open an account at the new bank and request a switch, and the new bank handles the entire transfer — balances, standing orders, direct debit authorisations, cheques and ongoing activity — with the old bank, within a short period.

There is no need to chase each provider separately, which was the part that used to deter people.

Why bother switching

The main reason is money. Different banks charge different fees and offer different benefits, including fee tracks, interest rates and joining incentives.

Anyone paying high fees, receiving poor service, or who simply has not reviewed their account in years may save hundreds of shekels annually by moving. Competition between banks works in your favour — but only if you use it.

What to check before switching

Compare the fee package and the benefits between banks.

Check joining incentives, which are sometimes time-limited.

Confirm all standing orders transferred after the move. The new bank is responsible, but verifying is sensible.

Consider the wider relationship — if you hold a mortgage or credit facility at the bank, check the effect before moving.

Common mistakes

1. Staying out of inertia even while paying too much.

2. Not comparing before switching.

3. Not verifying that all standing orders transferred in full.

Summary

Switching banks is no longer an excuse to stay put. It is simple, automatic, and can both save money and improve service. Compare fees and benefits, and do not hesitate to move if you are paying too much. See bank fees and the banking and credit section. We provide the knowledge — the decisions remain yours.