… but few actually do it. “Less than 10 percent”, says Sascha Dewald, CEO of FinReach, “use a special account switching service, which also cooperates with the DKB”.
Never before in history, there were so many increases or reintroductions of account management fees as in the year 2016.
Switching accounts nowadays is more meaningful than in recent years, because it is a definition of route of banks – the president of the German Savings Banks Association, Georg Fahrenschon, is thus repeatedly quoted with his declaration, “The time of free accounts is over.”
Not only the savings bank, also other major German retail banks have already decided that the account management fee paid by the customer should contribute to cover costs – which were built during the years of abundance and cherished structures.
It is a new definition of route, because the best German direct banks, which we observe up close right here on our special portal, have chosen to not do that.
Direct banks will remain free of charge!
1. Is there a trend towards free direct banks?
One might expect that many people open a new current account and cancel the old one as soon as possible. But what actually happens?
Part 1, it is actually increasingly implemented to open a new current account at one of the free direct banks. All three direct banks mentioned above have opened far more new current accounts in the first few months than in a long time.
Many, many new account openings at direct banks
The second part, which is the account move, is however completed only by few people in a short time.
If one asked Sascha Dewald, one learns that one of the main reasons that bank customers are afraid of, is the time and administrative effort. His company has found that an account switch in our increasingly complex world takes an average of 240 minutes! These are two movies, including commercial breaks.
Additionally, the concern is present and justified that you might forget to switch a few posts and that it then may lead to unpleasant consequences of uncashed debits with the known consequences, such as use blocking etc.
This challenge has also been detected by the policy and it acted to make the account switch easy for bank customers in future.
2. New law forces banks to offer an account switching service
From the 18th of September 2016, banks are required to offer an account switching service!
There is not much time left until this deadline and so you can imagine that there is merry hell in the industry in order to create an account switching service compliant to the payment accounts act (German: Zahlungskontengesetz,ZKG)!
Some banks have already developed this in advance and have been offering an account switching service since last year.
I looked at several of these processes and find the fully digital account switching, as offered by FinReach, the best.
If you are already a regular customer of the DKB, you can use it free of charge. If you are not yet a customer of the DKB, you can become a customer here: account opening and first steps.
2.1 Advantages of the account switching service
- You do not forget to notify any payment partner about the switch, because all money receivers and transmitters are automatically read and processed based on the account transactions of recent months and displayed in order.
- Payment partners are notified fully digital. That means that you do not need to print, sign and send any letter. Big and well-known payment partners (such as insurances) receive a note about the account switching electronically. FinReach takes care of the printing and sending of letters to smaller or less well-known payment partners.
- You do not only save the letter and postage fees with this account switching service, but the entire service is completely free for you as a customer! The costs are borne by the bank to which you have switched.
- You save tons of time and frustration with such a professional account switching services, because it runs automatically. FinReach has measured that people, who are particularly fast with the account switching, achieve to complete the whole account switching including the automated cancellation letter to the old bank in less than 10 minutes!
I recorded for you how such an account switching works. The video clip starts in the online banking system of the DKB:
Do you like the switching procedure as seen in the video?
Are there any questions left or did some just emerge? Please use the comments box at the end of this page. Gladly also for additions with your own experiences or tips!
3. Step by step through the account switching
Finally, the ING-DiBa also points out that some of their new customers save about Euros 500 through the account switching in the next 5 years. Surely, not only the account management fees, but also the annual fees for the cards and possibly further favourable services are included.
Euros 500 saved – and you?
How much will it be for you and will you treat yourself with a trip for this amount, as proposed by the ING-DiBa?
Set up a savings account to which you transfer the monthly savings by standing order. With this, you can build assets – at virtually no cost.
4. Open-minded for a recommendation?
People, who know me and our portal for some time, know that our recommendation for a powerful and free current account is the DKB. If you already have an account there and want to get a second account, please take a look at our ranking.
In order for new DKB customers to have an easier time to discover the numerous great features of the bank and use them smart, we currently work on the creation of the first online manual to the bank!
Online manual is in its creation!
The first parts and videos are already ready. We constantly add new and further ones. Being our fan, you can follow the development process live and can use the new documentaries first. Go directly to the free registration here ►►► become a fan.
4.1 A small request to you
Please recommend this website, so that even more people hear about this positive development and can decide for themselves – having the knowledge of new possibilities – whether the time has come for a change of account.
The task of our special portal is to help people to open the right bank account and use it cleverly.
Would you support this?
Further often read articles:
- Increase of the account management fees?
- A summary of the 11 most important functions of DKB Visa card
- Gebuhrenfrei MasterCard Gold ► clever use or scam trap?