Steps to change banks easily

Are you wondering how to change banks easily in Luxembourg? It couldn't be simpler: Luxembourg law allows you to change your bank at any time. easy, free banking mobility. Here are the steps to follow to change your direct debit in just a few days.

Step 1: Open an account with your new bank

The first step is to find a better current account that will enable you to reduce your bank charges. That's why it's worth switching banks. Once you've found an account you like, you'll need to :

1. Contact the bank directly of your choice. Make sure you compare banks in Luxembourg before opening your account.
2. Make an appointment with your bank advisor (don't forget to bring your ID and employment contract)
3. At the time of the bank account, the bank will open your new account You will have to choose your package (card, payment and withdrawal limits) and then sign the contractual documents. The bank will also offer to give you a free Luxtrust tokenif you don't already have one.
4. You will receive your bank card by post within 2 weeks. In the meantime, you can access your new account online using your Luxtrust certificate.

In just a few days, your new bank account will be active! The hard part is done: from now on, all you have to do is transfer your direct debits, recurring payments and salary to your new bank account.

Step 2: Transfer your SEPA mandates to your new account

Every month, your bank account is debited for recurring payments. These payments are made in two ways:

• Via bank transfers SEPA. This is often the case for your Internet subscription, your mobile phone package, your electricity contract or your insurance (home, car).
• Via online credit card payments. You use it to pay for current subscriptions (Netflix, Spotify) and online purchases (Amazon).

To change bank quickly, you will need to migrate these recurring payments to your new bank account. There are two ways of transferring these direct debits:

1. Making the change alone : you will then need to give your new bank details to each service provider (Internet provider, mobile operator, electricity supplier, etc.). You will also need to notify the tax authorities (for tax payments or refunds) and the CNS (for health reimbursements). This can be a long and tedious process. That's why we recommend the second solution.
2. Ask your new bank to make the change for you: you simply need to sign an authorisation that the bank will send you. The bank will then take care of all the formalities for you: it will send your new IBAN to the companies and administrations concerned.

In both cases, you will still need to update your credit card number on the to continue paying for your online subscriptions (Netflix, Amazon Prime, Spotify, iCloud, Google, etc).

The bank will not be able to do this for you, as you will need your login and password to access your personal account on each of these platforms.

Step 3: Transfer your income to the new account

Now that you can be sure that no more direct debits or payments will be made from your old account, you can migrate your income with complete peace of mind.

1. Contact your employer (usually the Human Resources department) and send them your new bank details (your new IBAN)
2. Your employer will update your IBAN in its payslip management system.
3. Your next salary will be paid into your new bank account!

If you have other sources of income, such as rent, don't forget to notify the people concerned (such as your tenant) and give them your IBAN. That way, there will be no interruption to your sources of income.

Step 4: Close the old account

Once you are sure that there are no recurring automatic transfers or card payments left on your old account, you can close the account definitively and finalise your change of bank account. As a result, you will no longer pay any bank charges to your old bank, and you will be able to use your new account at 100%.

Sample letter to change bank

To close your old account, you will need to send a letter of cancellation to your old bank. This letter must be sent by recorded delivery with acknowledgement of receipt. This way, you will have proof that the bank has received your request. The letter should contain the following information:

---

Sample letter for closing a bank account

Your contact details

Subject: Closing a bank account

I, the undersigned, (Your first and last name), hereby requests the closure of account no. (IBAN of old account) from your bank and transfer the balance to the bank (Name of new bank) to bank account no.(IBAN of the new account).

Yours faithfully

Done at (Location)the (Date)
Your signature

---