Steps to change banks easily

Are you wondering how to change banks easily in Luxembourg? Nothing could be simpler: Luxembourg law allows a easy and free banking mobility. Here are the steps to follow to change your direct debit in a few days.

Step 1: Open an account with your new bank

The first step is to find a better current account that will allow you to reduce your bank charges. This is why it is worthwhile to change banks. Once you have found an account that you like, you should then :

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

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

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Step 2: Transfer your direct debits and recurring payments to your new account

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

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

In order to change banks quickly, you will need to migrate these recurring payments to your new bank account. To transfer these direct debits, you have two options:

1. Making the change alone : You will then have to communicate 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 step can be long and tedious. This is why we recommend the second solution.
2. Ask your new bank to make the change for you: You will simply have to sign an authorisation that the bank will give you. The bank will then take care of all these procedures 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 are sure that no more debits or payments will be made from your old account, you can migrate your income with 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 their payroll system
3. You will receive your next salary on your new bank account!

If you have other sources of income, such as rent, don't forget to notify the people involved (such as your tenant) and give them your IBAN. This way, you will not have any interruption in your sources of income.

Step 4: Transfer the remaining money and 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 permanently and finalise your bank account change. This means that you will no longer pay bank charges to your old bank, and you can 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 registered mail with acknowledgement of receipt. This way, you will have proof that the bank has received your request. Here is the information that the letter must contain:

Sample letter to close a bank account

Your contact details

Subject: Closing a bank account

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

Yours sincerely

Done at (Location)on (Date)
Your signature

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