Moving your bank account to a bank with more suitable conditions, offers or more conveniently located branches may appear to involve a lot of effort. However, by using a switching service, your new bank can take out a lot of the work involved and ensure that your salary or pension, your rent payments, standing orders and direct debits are migrated seamlessly to your new account. The FMA’s consumer information series “Let’s talk about money” explains how it works in clear and simple language.
An EU Directive has simplified matters
Since 2016, a range of new provisions in the Austrian Consumer Payment Accounts Act have made payment accounts more accessible and easier to compare, and have simplified the process of switching accounts. It transposes the European Union’s Payment Accounts Directive (2014/92/EU), which has made the market for such accounts more transparent, and has improved competition. In 2023, 87,024 payment accounts switches took place, following 91,754 in the previous year. There has been a decrease in account switches since 2019.
Steps involved for switching an account
Switching an account involves the following stages:
- 1. Instructing the bank: The first step is to open a new account at the bank of your choice, and ask your new bank to conduct the switching process. This is usually done by filling out a form that you can get from your new bank.
- 2. Exchanging of information between banks: Your new bank contacts your old bank and requests it to transmit all relevant data (e.g. about existing standing orders and direct debits). Your old bank is required to transmit this information to your new bank within five working days.
- 3. Setting up payments: Once your new bank has received this information, it will set up all direct debits and standing orders in your new account within five working days. Your new bank informs all payers (e.g. your employer) and payees (e.g. your energy supplier) about your new bank account details.
- 4. Closing your account (optional): You may instruct your old bank to shut your old account. Once your old bank receives this instruction, it has a maximum of one month to close the account and to transfer any remaining credit balance into your new account.
The latest edition of “Let’s talk about money”, entitled “Farewell, old account!” can be downloaded from the FMA’s “Let’s talk about money” website contains this information and a wealth of other useful tips.
Journalists may address further enquiries to:
Boris Gröndahl (FMA Media Spokesperson)