Switching Banks Can Be Easier Than You Think

Maybe it’s overbearing fees or lousy customer service. Or maybe you just landed a new job and have to relocate across the country. Whatever the reason, you’re faced with the need to switch banks.AdobeStock_63753131

Moving from one financial institution to another is almost like a juggling act. There are plenty of balls in the air that you need to keep an eye on as you shut down your old account and open a new one. That’s why it’s a good idea to map out a strategy in advance.

Here are some steps to follow to help make switching banks as painless as possible:

  1. Do your homework. Research what financial institutions would be a good fit for you. Choices range from a traditional bank or credit union to an online-only bank.
  2. Make your choice and open an account. Once you have an idea about what type of financial institution you’d like to work with, dig deeper. Will you need to maintain a minimum balance once you open the account? What kinds of fees can you expect? What interest rate do they offer on savings or checking accounts? Do they have a lot of ATMs you can use? Do they offer Online and Mobile Banking? Contemplating these questions will help ensure that you choose an account that best suits your needs. Once your choice is made, gather all of the documentation and information you’ll need to open the account. And don’t close your old accounts just yet.
  3. Order what you’ll need. When you open your account, don’t forget to place an order for things like checks and debit cards. The sooner you can get those and start using them instead of your old ones, the quicker you can cut ties with your old bank. You should also register for Online Banking if your bank offers it, and set up any automatic account alerts you’d like to receive via text message or email. And remember to download your new bank’s mobile app if you’ll be doing your banking on-the-go.
  4. Get some money into your new account. If you plan to use direct deposit, provide your employer with your new bank account and routing numbers, and find out how long it will take for the update to happen. It’s also a good idea to transfer some money over from your old account, but be careful not to move so much money over that you’re in danger of overdrafting the account or not meeting your old bank’s minimum balance requirements.
  5. Update online payment info. If you utilize online payment services like PayPal or Stripe, you’ll want to update the bank account info that’s tied to them so any future payments will come out of your new accounts. You should also compile a list of all the electronic payments you make – automatic or otherwise – and ensure that the payment details on those accounts reflect your new financial institution. If you were using bill pay at your old bank, you should set up all of those same automatic payments through your new accounts.
  6. Double check everything. Once you’ve covered all of your bases and are ready to close your old accounts – don’t. At least not yet. It’s a good idea to double check and confirm that your direct deposits are going into your new account as intended, that all of the checks you’ve written from your old account have cleared, and that all of your electronic payments are successfully coming out of your new account.
  7. Close out your old account. Once you can confirm that everything is A-OK with your new account, it’s time to cut the cord with your old bank. Any money that you have left in your old accounts should be transferred over to your new ones, and you should inform your old bank of your decision to close out the accounts. The Consumer Finance Protection Bureau recommends getting written confirmation that your accounts have been closed.

And if you’re concerned that switching banks might have a negative impact on your credit score, there’s no need to worry. Closing a deposit account – or opening one – will have no bearing on your credit report. Keep in mind though that abusing a bank account (for example, writing bad checks, or not repaying a negative balance) could prevent you from opening another bank account in the future, as this kind of activity is tracked and reported on by agencies like ChexSystemsAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!.

No matter what your reason for making the switch to a new bank, taking the time to plan ahead will help to make the move as easy and stress-free as possible.

Do You Need to Switch Banks When You Move?

You finally landed that dream job, but it means moving across the country. There’s a lot to think about to make it a smooth transition. While you’re stressing about selling your old home, securing a new one, and dealing with the movers, it’s easy to overlook something as basic as your bank. But it’s important to consider whether you’ll have easy access to your funds after your move, or if a bank switch is in order.advantages-of-online-banks-when-you-move

If you’re banking with a nationwide or international bank, you’re probably good to go, but you should still check to ensure that there are branches or ATMs near your new home that you’ll have easy access to. However, if you’re currently banking with a local community bank or credit union, or a financial institution with a limited regional footprint, there’s a good chance you’ll have to open new accounts in your new location in order to access your money as conveniently as before.

One way to avoid having to uproot your funds every time you move is to bank with an online bank. With an online bank there are typically no branches, so you don’t need to worry about finding a new bank when you move. You can keep the same bank accounts wherever you go. At Bank5 Connect, our customers can access their money, free of charge, from any ATM within the SUM NetworkAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!, and if they use an ATM outside of the SUM Network and are charged a fee, we reimburse them up to $15 per statement cycle.

Here are some other advantages of using an online bank:

  • You can bank anywhere there is an internet connection. On online bank is open 24 hours a day (unless of course, the bank’s website is undergoing maintenance, which typically doesn’t last very long and is done during off-hours). And, in the event that internet service isn’t available, most online banks can be contacted by phone.
  • You have access to real-time account information, such as balances, deposits, and withdrawals, with just a few keyboard clicks. This provides for ease of access and lets you stay on top of activity in your account.
  • Since online banks don’t have infrastructure such as physical branches and overhead costs tied to them, they can usually offer higher interest rates on savings and checking accounts. For online banks with lending capabilities, those lower overhead costs can translate into more attractive loan rates for customers as well.
  • It’s easier to spot and fix problems with your account. For instance, you don’t have to wait for a printed bank statement to review your account activity.
  • You can pay bills using online banking. No more envelopes and stamps and questioning yourself about whether you remembered to sign the check before sending off the bill. Everything is done electronically, with an online record you can refer back to if necessary.
  • Transferring money from one account to another is a breeze using online banking. You save yourself time by bypassing a trip to the bank or going through a complicated process by phone.
  • Mobile apps are available from virtually all online banks to give you even more flexibility. With most online banking mobile apps you can take photos of checks and deposit them into your account, you can pay bills, and you can check your account activity on the go. It’s important, however, to avoid using public Wi-Fi (such as the networks available in coffee shops, hotels, and restaurants) when conducting online banking transactions, as these networks are not secure.

To learn more about making the switch to an online bank like Bank5 Connect, visit our website today!