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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.
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 :
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.
Every month, your bank account is debited with recurring payments. These payments are made in two ways:
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:
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.
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.
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.
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%.
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).
Done at (Location)on (Date)
In Luxembourg, it is very easy to change banks. The law allows for easy and free bank mobility. You can change banks at any time, free of charge.
To change banks, you must :
1. Find a better offer and open a new account at another bank
2. Transfer your direct debits and update your credit cards on sites where you have subscriptions
3. Transfer your income to the new account
4. Close the old account
There are no fees for changing banks in Luxembourg. It is 100% free. All you have to do is open a new account and then inform your bank of your wish to change your direct debit.
The best time is when you have found a better account which allows you to reduce your bank charges.
There are no additional costs for changing your bank account. It is 100% free in Luxembourg.
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