How to Change Banks When Moving Out of State

No matter if you’re leaving town to buy a new home across the country or relocating around the corner, moving is never fun.

First off, there are tons of things you have to do. You have to find a new home, pack up all of your possessions, move them to your new location, clean your old home, clean your new home, unpack, organize, and more. This doesn’t even include all of the other logistics that can go along with moving, like setting up new accounts for utilities, switching Internet providers, and changing your address on pretty much everything.

This list can be even longer if you’re moving to a new state. And, one of the most important things to add to this to-do list is to change banks.

Before you get stressed out thinking about changing banks while in the midst of a move, we’re here to offer a helping hand. Take a look at the following steps to change banks.

Open a New Account

One of the very first things you must do is open a new account – ideally for free. Unfortunately, this might take a little legwork to find a bank with the best features for your lifestyle. For example, you may want a bank account with no fees. You may also want to pay bills online via a sweet mobile app.

With these goals in mind, you may prefer an online only account, like Chime. Or, perhaps you’ll want to open an account at a bank with brick and mortar locations in your new state. The benefit of opening an account with an online bank is you’ll never need to worry about changing banks again if you move out of state.

After deciding which kind of bank you prefer, you will need to provide identification, such as your social security number and a government-issued I.D. In addition, you will need a small amount of money to deposit into your new account. The minimum amount required can differ from bank to bank. In some cases, there is no minimum deposit required at all, such as the case with Chime.

Get a Debit Card

A debit card can be a convenient way to access the money in your new checking account, plus it’s also a good way to grow your savings.

Some bank accounts, like Chime, offer programs that round up your debit card purchases and deposit those round up amounts into your savings. This spare change can add up over time to make a big difference.

Keep in mind: getting a debit card for your new account may take some time, so make sure you factor in a week or two until your new card arrives.

Set up Automatic Withdrawals

As soon as you have enough funds in your new account, you should set up automatic withdrawals to come out of your new account – instead of your old one. For example, you can set up automatic withdrawals to pay new creditors, such as your landlord, your mortgage company, your homeowner’s or automobile insurance, or your utilities. You can also schedule automatic payments to pay your credit cards bills, Internet provider, and any other monthly bills you need to pay.

Schedule Automatic Deposits

Automatic deposits are another area you must address as you change banks when moving out of state. Talk to your new bank and employer about setting up direct deposits of your paychecks to the new account.

You should also set up automatic transfers into your new savings account too. Automating your savings can help you save money with each paycheck and reach your goals faster.

Monitor All Accounts

For starters, make sure you don’t immediately close your old bank account when you move. The reason for this is that there may still be outstanding checks, transfers, or other transactions that have not been completed yet.

Instead, monitor all of your accounts – the new and the old – until all of your pending transactions have cleared your old account.

Close Old Accounts

Once all of your transactions have cleared your old bank account, you are ready to close it.

Next up: contact your old bank and let the customer service representative know you are closing your account and intend to deposit the money into your new bank account located out of state. You can then ask for a cashier’s check for the remaining balance.

Ease the Stress of Changing Banks

Moving to a new state is a difficult process, but changing banks doesn’t have to be. Hopefully these tips will help ease the stress of moving out of state by making the process of changing banks a little smoother.

Have you ever moved out of state? How did you handle changing banks?


7 Ways to Save Money When Moving Out of State

On the list of the most stress-inducing life events, moving is often at the top. And if you’re moving across state lines, it can be even worse.

Thankfully, there are ways to reduce the cost of moving cross-country, even if you can’t minimize the hassle. Here are 8 simple ways to save money when moving out of state.

1. Drive Your Own Truck

Hiring movers to drive your stuff across the country can cost several thousand dollars. At the same time, handling everything yourself just isn’t worth the headache. You can split the difference by hiring movers to pack up the truck and then drive it cross-country yourself. Or, if you’re motivated and want to save the most cash, pack up yourself and also drive your stuff to your new location.

A quote from showed that a move from New York City to Los Angeles costs between $6,120 and $8,676 with professional movers. However, renting a truck from Penske costs between $2,606 and $3,447, depending on the size of the truck.

Here’s another pro tip: remember to rent the truck in advance. The closer you are to your moving date, the more you’ll pay for a moving truck. You should also try to reserve a truck on a weekday and avoid holidays. Moving companies often jack up prices on weekends as well as on popular holiday moving dates like Memorial Day and Labor Day. Even if you aren’t exactly sure when you’ll move, book a date as soon as you find out you’re relocating. You can always change the exact date or type of vehicle later if your plans change.

2. Throw a Packing Party

If you’re truly committed to saving money on your move, you can take the above tip a step further. Instead of hiring movers to pack the truck or doing it all yourself, consider inviting friends over for a going away/packing up party. It won’t cost more than a few pizzas and some beverages, and you can drive away full of positive vibes and happy memories.

3. Get Free Boxes

Warehouse clubs, liquor stores, and other retailers are known for having boxes laying around the back room that are free for the taking – if you ask. You can also search for boxes on Craigslist. Many people are happy to give their moving boxes to someone else for free. If you have friends who work retail, ask if they have access to boxes.

4. Declutter

The less you have, the cheaper it is to move. Consider every item you own and ask if you really want to take it with you. Do you need to keep the boxed DVD set of “Charmed” or can you toss it? You can sell any large or valuable items online and put the proceeds toward the move.

Another pro tip: If you donate your items and itemize your taxes, you can claim the contribution as a tax deduction.

5. Switch Banks

It’s time to close your old bank account. When you move to a new state, you might find your bank no longer has local branches or ATMs. Out-of-network ATM fees typically cost about $3 each time you use a cash machine. This can add up quickly if you use cash on a regular basis. But, if you switch to an online bank like Chime, you won’t have to worry about finding a location or ATM near you. Better yet, ATM fees for Chime members are free – all the time.

6. Keep All Receipts

The IRS permits you to deduct moving expenses if you relocate for work. If this is the case for you, keep any receipts related to your move so you can deduct them when tax time rolls around. Keep in mind that you can only deduct expenses such as gas, rental truck, and hotel.

7. Ship Your Belongings By Train

If your moving plans follow a train route, you may have a unique option available. Many people have success shipping their belongings by train and then flying to their destination. Amtrak allows you to ship up to 500 pounds total, with each package weighing no more than 50 pounds. You’ll need to call to get a specific estimate, but it’s about $67 per pound for the first 100 pounds and then 70 cents per pound after that.


So You Want to Move Out of Your Parents’ House? Try These 8 Strategies

As millennials, we want to do it all, be it all and see it all. But there’s one big thing holding many of us back from achieving our version of the American dream — financial independence.

In fact, according to ABODO’s analysis of U.S. Census data more than one-third of millennials have yet to leave the nest. And the proportion of older millennials — ages 25 to 34 — who are living with their parents has reached 19 percent, the highest point ever, according to the Associated Press. Why the high numbers of millennials residing in their childhood basements? Economic necessity.

The good news? Your circumstances right now don’t have to determine your possibilities for the future. Here are 8 strategies for achieving financial independence and moving on out of that musty basement:

Know where you stand today

It’s time to have a heart-to-heart with yourself about your current financial situation. When I first started on my journey to financial freedom, the first thing I did was review my bank statements from the previous 90 days. I was shocked to find out that $20 here or $50 there added up to hundreds of dollars each month spent on things I didn’t need.

Apart from coming to terms with your spending habits, it’s important to calculate your total debt number. Try creating a simple spreadsheet to list all your student loans and credit cards. Good ole fashioned pen and paper will work just fine as well.

The purpose of this exercise isn’t to throw yourself a pity party but rather to lay the groundwork for getting to where you need to be.

Beef up your financial knowledge

It can be really overwhelming to start learning everything there is to know about personal finance. However, online bank accounts like Chime can help you make proactive money decisions.

Start with the basics such as understanding how to create a budget, manage debt, save for retirement and invest for the future. When you’re just starting out, it’s important to do your own research but remember there’s no shame in asking for help from a financial expert. You can search for a fee-based financial advisor here.

Work backwards

Armed with some financial knowledge, it’s now time to set your plan into motion. Choose one big picture goal that you’d like to achieve over the next 12-24 months. For example, moving out of your parents’ house.

The cost to move out will likely be several thousand dollars including a security deposit on an apartment, first month’s rent and buying furniture. Once you’ve come up with the amount of money you’ll need, divide this up into months. Monthly savings goals are a lot more manageable and you can give yourself a small reward each time you achieve them — #winning.

You can use this same approach to figure out your monthly expenses when you move out.

Automate your savings

Having a plan means very little if it’s hard to execute. One of the easiest ways to save money is to take the guesswork out of the equation completely. Chime makes it easy for you to achieve this goal through automation. With a Chime bank account you can save when you get paid by automatically directing 10% of every paycheck into your savings account.

As a bonus, if you use your Chime card to make purchases, Chime will round up each purchase you make to the nearest dollar, and transfer the roundup amount from your Spending Account to your Savings Account.

Get aggressive with paying off debt

There are so many advantages to eliminating your debt sooner rather than later. Apart from achieving financial zen and saving on ridiculously high-interest costs, getting rid of debt frees up your income. Imagine a life without payments — the possibilities are endless!

There are lots of ways to pay down debt quickly such taking on a side hustle or two, dramatically reducing your expenses or considering tools such as credit card balance transfers.

Go on a fiscal fast.

You could also try out a fiscal fast. This is like going on a diet but for your finances. The idea of a fiscal fast is to completely eliminate all non-essential spending – like coffee runs – for a specific period of time. Short fasts last only a few days whereas more extreme ones can last an entire month. Along with jump-starting your savings goals, fiscal fasts also teach you to be financially disciplined and even creative.

The key to success is to transfer all the money you would have spent during the weekend or month into a savings account. I’ve done five fiscal fasts in the past year or so. Each time I’ve saved between $250 and $300. This helped me get rid of my credit card debt a lot quicker.

Invest in yourself.

You are your biggest asset. Take the time to invest in your personal and professional development and watch the returns roll in. You might choose to start with investing in your career or professional advancement by learning new skills, participating in training sessions, or taking a new course. These steps can set you up for your next promotion and possibly even a raise.

There’s also huge potential in exploring your creative side. Lifehack notes, “creativity, in any form, helps us to grow personally and professionally, to view problems and solutions in different ways and to utilize other parts of our mind that may have been previously untapped.”

Throughout this journey, don’t neglect self-care like eating well-balanced meals and exercising. Remember, health is wealth.

Check your thoughts regularly.

You might be surprised by what positive thinking and even meditation can do for developing good financial habits. These tools can help you stick to your goals, bounce back from setbacks and reduce anxiety when it comes to your finances. Now, it’s time to go and do! Start implementing even one of these strategies per week and start writing your financial independence story today.