How to Change Banks

For one reason or another, you are probably fed up with your bank and are wondering what's the best way to change banks quickly. If your bank isn’t fulfilling your financial needs, switching banks is a good way to get a better deal. Primarily, banks should help empower you to make smart money decisions and to feel confident about your finances. If not, it’s time to switch up banks. 

Switching banks can be easy, and in this piece, we show you just how easy it can truly be.

Why Are You Changing Banks?

Sometimes, it is necessary to change banks to get the kind of services that you need. Here are some reasons why you may consider switching banks:

So Many Fees

Today, banks charge for everything they do, including ATM fees, NSF fees, and inactivity fees. Over time, these charges can add up to significant amounts. Some banks charge more than others. If you feel that your bank is charging too much for certain services, you can look around for a more affordable option.

Not The Best Rates

If you have a savings account with your bank, you need to earn a fair interest rate on your balance. If your bank has a lagging interest rate, it’s time to look for an alternative saving account. Ideally, you may want to keep your money with a bank that enables you to earn more on your deposit.

No Interest on Checking Account

Is the bank you work with offering interest on your checking account? While most free checking accounts do not pay interest, there are some that do. If this is important to you, take a look around.

Location

An important factor, the location of your bank needs to be convenient. Choose a bank that is convenient for you. If the bank you work with isn’t close to you, it might not make sense to keep doing business with them. Even if they do offer cheaper fees, the gas you need to get to their location whenever you need their expertise counteracts the savings you are making.  Of course, if they offer an online banking option that covers all of your banking necessities, then all good!

Other viable reasons for switching banks include:

• Unsatisfactory customer service.  

• Lack of online banking options.

• The absence of a broader range of banking features. 

• Your bank doesn’t align with your values

• Your bank doesn’t offer anything of value to you

Find a Better Bank

Finding out where you would like to move your accounts is the first step when switching banks. There are endless options for opening a new account; therefore, it is important to have a checklist of the features you are looking for. Such features may include:

• Fees charged

• Benefits such as mobile check deposit and automatic bill payment

• Interest rates on savings

• Branch and ATM locations

• Mobile and online banking services, or an online only bank

• A debit card with awesome rewards

• Features that supplement your financial habits and strategies

Open the new account before closing the old one to allow a smooth transition for your automatic transactions. Also, remember to consider the lowest opening deposits and minimum balance requirements. 

Reroute Automatic Transactions from Your Old Bank

Since you now have a new bank account, you need to transfer your regular deposits and withdrawals. If you have a lot of automatic transactions, this may take a while, so start the process immediately. This is where your old bank statements come in handy. 

Here is a two-step process on how to reroute your transactions:

1. Review your transactions for the past 12 months: Since some transactions are annual, you may not spot them in less than a year’s worth of statements. Leave some cash in the old account to cater to these scheduled payments until the switch is complete. The same applies if you have pending payments or have written checks recently.

2. Switch your payments and deposits: After identifying your deposits and transfers, you can now switch them over to the new account. For direct deposits, submit your new bank information. Set up automatic bill payments using your new bank account and if you make these payments through specific billers, remember to update your information. Set up all your recurring transfers, such as deposits from checking to saving, to occur between the new accounts.

You may also order new checks if you use paper checks, update your mobile wallet payment details and set up a new safety deposit box. 

Close Your Old Bank Account

Having satisfactorily transferred all your automatic transactions to the new account, you can now close the old bank account. Some banks may allow you to do this online or over the phone, while others insist that you close your account in person. Inquire if there is any fee charged for closing your account. Ensure you ask for a written confirmation that shows the account is closed. This is important, especially if your old bank allows for a debit or a deposit to go through your account, triggering some fees. 

If you have any paper checks or a debit card for the old account, you must destroy them. Once you get the final statement from your old bank, carefully review it to ensure you have transferred all your deposits and payments.

Let Your Money Do More for You

Your bank should help you do more with your money. Whether it’s lower transaction fees or better accessibility, you need to feel confident about your finances. Switching banks can help you achieve this, and so can adopting smart money apps such as Monorail. Whether you want to stick to your budget or plan for your savings goals, Monorail can help you do it all. 

From day-to-day banking to a debit card with great rewards – not to mention wishlist and saving features – Monorail could help you get your finances together.

See what the Monorail Debit Card and checking account can do for you.

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