Putting My Foot Down
April 19, 2012 7:07 PM Subscribe
How do I pick a new bank/credit union and go about switching?
Right, a certain large bank has decided I don't have enough money for them to want my business--I'm not paying $15/month for a checking account. What sort of criteria do I want to use? Right now, the only thing I can come up with is that I want good ATM access (in MN, Chicago, CA and VT, ideally), which is how I ended up with this bank in the first place. Well that and non-exorbitant fees.
Once I decide, what do I do? Open the new account, transfer the money and march into the bank and say I'm closing my accounts? Should I march into the bank first and try and get them to convert my checking account to an account where they waive the fees? I suppose I'm worried that they'll give me a hard time about closing my accounts. I've only closed a bank account once before and I don't know that they asked. But if they did, I had good reason they couldn't argue with--I was moving somewhere where they had no presence.
(I have a family member who worked at a different bank that would occasionally try to shed customers without 'enough' money, so that's why I assume that's what they're doing. Though I suppose they could just be trying to get rid of those accounts.)
Right, a certain large bank has decided I don't have enough money for them to want my business--I'm not paying $15/month for a checking account. What sort of criteria do I want to use? Right now, the only thing I can come up with is that I want good ATM access (in MN, Chicago, CA and VT, ideally), which is how I ended up with this bank in the first place. Well that and non-exorbitant fees.
Once I decide, what do I do? Open the new account, transfer the money and march into the bank and say I'm closing my accounts? Should I march into the bank first and try and get them to convert my checking account to an account where they waive the fees? I suppose I'm worried that they'll give me a hard time about closing my accounts. I've only closed a bank account once before and I don't know that they asked. But if they did, I had good reason they couldn't argue with--I was moving somewhere where they had no presence.
(I have a family member who worked at a different bank that would occasionally try to shed customers without 'enough' money, so that's why I assume that's what they're doing. Though I suppose they could just be trying to get rid of those accounts.)
See if your local credit unions participate in a surcharge-free ATM network. My CUs both do (the one where I work and the one that holds my mortgage & where I do my online banking & bill pay). I can go to 50.000 ATMs pretty much anywhere w/no fee.
I closed my last bank acct a few months ago (suntrust). I signed a form & they asked me if I wanted cash or a check. Simple as pie.
posted by headnsouth at 7:29 PM on April 19, 2012
I closed my last bank acct a few months ago (suntrust). I signed a form & they asked me if I wanted cash or a check. Simple as pie.
posted by headnsouth at 7:29 PM on April 19, 2012
If you're looking at local (that is, local to your primary living place) credit unions, what you'll want to look at is what network of credit unions or ATMs they participate in. For example, my CU participates in an ATM chain that's often found in drugstores and laundomats, which is pretty nice when I'm travelling.
When I switched, it was no questions asked, but since it was just post-merger/sell-out so I think they kind of knew why a bunch of people were leaving.
posted by cobaltnine at 7:32 PM on April 19, 2012
When I switched, it was no questions asked, but since it was just post-merger/sell-out so I think they kind of knew why a bunch of people were leaving.
posted by cobaltnine at 7:32 PM on April 19, 2012
Bankrate.com has a good summary of rates. I insist on a modern one that lets you do everything online (mine lets me submit checks via my iPhone).
posted by simongsmith at 7:33 PM on April 19, 2012
posted by simongsmith at 7:33 PM on April 19, 2012
Best answer: First, choose your new bank. Then, you can open an account with $5 in it and switch your money. The new bank wants your money badly, and will make this easy for you.
Once you've switched your direct deposit, if you have it, you are pretty much done with old bank. Keep both accounts open for a short while as you ascertain that there will be no more charges hitting Old Bank Account - and then close that account. OFten you have to do this by postal mail, believe it or not, especially the big bad banks. They want to make it hard.
A guide is here at Move Your Money.
This is not a big deal. Do it now - you won't look back.
posted by Miko at 7:34 PM on April 19, 2012
Once you've switched your direct deposit, if you have it, you are pretty much done with old bank. Keep both accounts open for a short while as you ascertain that there will be no more charges hitting Old Bank Account - and then close that account. OFten you have to do this by postal mail, believe it or not, especially the big bad banks. They want to make it hard.
A guide is here at Move Your Money.
This is not a big deal. Do it now - you won't look back.
posted by Miko at 7:34 PM on April 19, 2012
Sometimes, depending on your bank, you don't even have to go in to close things. For a couple of mine at Big Banks, I've been able to clear out my accounts, then use those secure messaging features they have to say "Please close my account" with no problem.
posted by Ghostride The Whip at 7:56 PM on April 19, 2012
posted by Ghostride The Whip at 7:56 PM on April 19, 2012
I just did this about six months ago, switching from Bank of America (after they announced the new Debit Card monthly fee) to a local credit union. It was easily worth it.
My only regret is not leaving both accounts open for a short while, as Miko noted. I had a late debit come in from a restaurant that kept my accounts open longer than I wanted (and I *really* wanted those accounts closed), but in the long run, it wasn't a big deal.
When I went in to close my accounts (I had both checking and savings at BoA), they just gave me a cashier's check for my balance. There was minimal resistance (some token questions, but no pressure) from the bank manager, who was actually a very sweet lady. I just told her I'd done my research and wanted to keep my money local. Of course, YMMV there, depending on who you talk to.
The only thing I miss is the ability to deposit checks at the ATM 24/7, but for the ~$25 a month I'm saving in fees, I can easily afford to forgo that convenience. My credit union has a very functional mobile website, including transferring money from savings to checking if I need to, and, as cobaltnine noted, a shared network of ATMs should I ever need one out of town (although it's just as easy to get cash back from a Debit purchase at a lot of drug stores/grocery stores, etc.)
posted by Ufez Jones at 8:02 PM on April 19, 2012 [2 favorites]
My only regret is not leaving both accounts open for a short while, as Miko noted. I had a late debit come in from a restaurant that kept my accounts open longer than I wanted (and I *really* wanted those accounts closed), but in the long run, it wasn't a big deal.
When I went in to close my accounts (I had both checking and savings at BoA), they just gave me a cashier's check for my balance. There was minimal resistance (some token questions, but no pressure) from the bank manager, who was actually a very sweet lady. I just told her I'd done my research and wanted to keep my money local. Of course, YMMV there, depending on who you talk to.
The only thing I miss is the ability to deposit checks at the ATM 24/7, but for the ~$25 a month I'm saving in fees, I can easily afford to forgo that convenience. My credit union has a very functional mobile website, including transferring money from savings to checking if I need to, and, as cobaltnine noted, a shared network of ATMs should I ever need one out of town (although it's just as easy to get cash back from a Debit purchase at a lot of drug stores/grocery stores, etc.)
posted by Ufez Jones at 8:02 PM on April 19, 2012 [2 favorites]
I closed my account at MegaCorpBank a couple of months ago. I went to the teller, told him I'd like to close my account, and he said "sure!".
He typed a few things into his comp and casually asked me why I was closing the account. I said it was because I had moved my business to another bank. That answer seemed entirely satisfying to him.
He made no effort whatsoever to convince me to stay, and was completely professional the whole time. Would close account again.
I have been much happier with my credit union, convenience be damned.
posted by no regrets, coyote at 8:08 PM on April 19, 2012
He typed a few things into his comp and casually asked me why I was closing the account. I said it was because I had moved my business to another bank. That answer seemed entirely satisfying to him.
He made no effort whatsoever to convince me to stay, and was completely professional the whole time. Would close account again.
I have been much happier with my credit union, convenience be damned.
posted by no regrets, coyote at 8:08 PM on April 19, 2012
just come on over to USAA. you don't have to have a relation in the military anymore. you won't regret it.
posted by treehorn+bunny at 8:09 PM on April 19, 2012 [1 favorite]
posted by treehorn+bunny at 8:09 PM on April 19, 2012 [1 favorite]
USAA is the solution I switched to in addition to having a small local-to-me Vermont bank for when it's helpful to have a local check for rent or paying the plumber or whatever. USAA solves the ATM problem because they refund your ATM fees from other banks. They will also give you envelopes that you can use to make deposits through the mail and you can deposit your checks via email whoch I haven't done yet but am intrigued by. I used to have an out of state credit union but in my part of Vermont it was a bit of a problem to find a CU ATM which I was surprised at but was true. The two local credit unions didn't have ATMs when I was looking for a new bank. The good news is there is a lot of value to having a local community bank [notary services, safe deposit boxes, the occasional free coffee] but USAA has a better rate of return and the ATM thing. So, not a perfect solution for you maybe but goods otherwise.
And yeah when I closed my other account it was straightforward and there was no weird salesmanship. If the new fees are causing you to switch, feel free to tell them that. It's not like leaving your cell phone company or your cable company, banks are a little less high pressure. Good luck with whatever you decide.
posted by jessamyn at 8:52 PM on April 19, 2012
And yeah when I closed my other account it was straightforward and there was no weird salesmanship. If the new fees are causing you to switch, feel free to tell them that. It's not like leaving your cell phone company or your cable company, banks are a little less high pressure. Good luck with whatever you decide.
posted by jessamyn at 8:52 PM on April 19, 2012
Another happy USAA user here. Ditched B of A, opened an account online the way Miko describes, and got the transfer done gradually to take care of loose ends.
USAA's biggest drawback is that they don't really have a lot of local physical locations. However they make up for this fabulously. Non-bank ATM fees are refunded up to a certain amount per month, any banking needs can be handled through the web site, online bill pay is free, and the phone service is amazing. I have deposited checks by mail, by visiting the local UPS store, and via the web site by scanning the check and submitting front and back through the web: the money got where it was going, so I have no complaints.
posted by Gilbert at 9:17 PM on April 19, 2012
USAA's biggest drawback is that they don't really have a lot of local physical locations. However they make up for this fabulously. Non-bank ATM fees are refunded up to a certain amount per month, any banking needs can be handled through the web site, online bill pay is free, and the phone service is amazing. I have deposited checks by mail, by visiting the local UPS store, and via the web site by scanning the check and submitting front and back through the web: the money got where it was going, so I have no complaints.
posted by Gilbert at 9:17 PM on April 19, 2012
My husband just brought up USAA tonight - and I plan to do some research because I want to make sure they are not an arm of the military (they seem not to be, I just want to make sure I'm not accidentally supporting wars I don't support.)
Otherwise, yeah, them!
posted by jbenben at 1:01 AM on April 20, 2012
Otherwise, yeah, them!
posted by jbenben at 1:01 AM on April 20, 2012
I just switched from Wells Fargo (boo) to Ally (so far, so good). I overlapped for a few weeks to make sure my direct deposits and online pay schedules were properly set up, and then I called WF (boo) and said buh-bye. By the way, Ally, which has no brick and mortar presence, reimburses me for ATM fees.
posted by thinkpiece at 4:24 AM on April 20, 2012
posted by thinkpiece at 4:24 AM on April 20, 2012
I too haven't yet made a deposit via email and am looking forward to it!
posted by thinkpiece at 4:25 AM on April 20, 2012
posted by thinkpiece at 4:25 AM on April 20, 2012
Response by poster: I plan to do some research because I want to make sure they are not an arm of the military (they seem not to be, I just want to make sure I'm not accidentally supporting wars I don't support.)
I'm pretty sure they're not, but I'm not totally comfortable with them because of their advertising. (I think I'd sound nutty if I tried to explain.)
Good point whoever mentioned a notary. Right now, I have access to one elsewhere, but it's something to keep in mind (how often I need a notary, I don't know).
posted by hoyland at 5:31 AM on April 20, 2012
I'm pretty sure they're not, but I'm not totally comfortable with them because of their advertising. (I think I'd sound nutty if I tried to explain.)
Good point whoever mentioned a notary. Right now, I have access to one elsewhere, but it's something to keep in mind (how often I need a notary, I don't know).
posted by hoyland at 5:31 AM on April 20, 2012
If you have any automatic payment withdrawals, make sure those are all completely squared away before you close your old account.
I switched from BigBank to AwesomeLocalCreditUnion a couple years ago, and it took around three months to get direct deposit, mortgage payment, car payment, student loan payment, and remote savings account pull all switched over to the new checking account. It was more than "not a big deal" because I had to do a delicate balancing act of making sure enough money was in each account for a few months but otherwise, yeah, totally glad I made the switch.
Also, if you're used to paying credit cards on their websites, sometimes it can take a month or two until the new checking account is "approved" for use in paying the credit card (looking at you, Citibank, glad I got rid of you too) so be prepared to send in some actual checks if you can't do everything electronically during the switch (though if you set things up in Bill Pay in the new account right away, this would probably make things a lot easier, I don't know why I took so long to get on the Bill Pay boat).
Hopefully your financial life is less complicated than mine so you don't need any of this advice, but just wanted to mention it since I don't think anyone else has yet.
posted by rabbitrabbit at 8:32 AM on April 20, 2012
I switched from BigBank to AwesomeLocalCreditUnion a couple years ago, and it took around three months to get direct deposit, mortgage payment, car payment, student loan payment, and remote savings account pull all switched over to the new checking account. It was more than "not a big deal" because I had to do a delicate balancing act of making sure enough money was in each account for a few months but otherwise, yeah, totally glad I made the switch.
Also, if you're used to paying credit cards on their websites, sometimes it can take a month or two until the new checking account is "approved" for use in paying the credit card (looking at you, Citibank, glad I got rid of you too) so be prepared to send in some actual checks if you can't do everything electronically during the switch (though if you set things up in Bill Pay in the new account right away, this would probably make things a lot easier, I don't know why I took so long to get on the Bill Pay boat).
Hopefully your financial life is less complicated than mine so you don't need any of this advice, but just wanted to mention it since I don't think anyone else has yet.
posted by rabbitrabbit at 8:32 AM on April 20, 2012
Still a regular user of ING Direct, even though Capital One recently bought them (sigh). All online, better interest rates (pretty pathetic - 0.8% on savings right now - but better than my credit union), very good online bill-pay features, no monthly or nickel-and-dime fees, and they even cover the cost of the stamp to mail out checks on your behalf. (They make money on the float.) They share the Allpoint ATM network, so odds are that you'll find one that works near you. E.g., I think all ATMs in Target stores are on Allpoint.
But they require a regular bank checking account, at least for the initial setup, and for cash transfers in and out. I use them in conjunction with my local credit union and have been quite happy with them.
posted by RedOrGreen at 8:53 AM on April 20, 2012
But they require a regular bank checking account, at least for the initial setup, and for cash transfers in and out. I use them in conjunction with my local credit union and have been quite happy with them.
posted by RedOrGreen at 8:53 AM on April 20, 2012
Another online option to consider is Charles Schwab bank, which I use. Their high yield checking is free if you open a brokerage account (that's an account for investments, but you don't have to have any money in it). All ATM fees are refunded at the end of the month, you earn a small amount of interest, online bill pay is free, you can deposit checks by mail or if you have a smart phone you can take a picture of the check and deposit it using their mobile app. For me, this deposit check with a photo thing eliminates the last hassle associated with online banking. They also have great customer service, in my experience. There are no hidden fees, everything is basically free, you even get checks for free. It's great.
posted by medusa at 9:08 AM on April 20, 2012
posted by medusa at 9:08 AM on April 20, 2012
Have you called or talked to a banker about your options? They are just realigning plans and there may still be a way to get a free account.
I just got a similar notice yesterday from Wells Fargo that they were going to start charging me $15/month for my checking account. I called and the first person was not helpful. But then she passed me to a banker who did an account review.
The banker was able to downgrade me from the "complete advantage" to the "way to save" checking account. The former is $15/month (waivable if you have a $7500 balance, which I don't). The latter is $10/month (waivable if you have at least $700/month direct deposited, which I do). Either account can have the fee waived if you make 10 debit card transactions a month (I don't). There were other ways around the fee too -- like automatic transfers to savings, etc. So if you want to stay with your bank, it might be worth a few minutes of leg work.
posted by mcgsa at 2:53 PM on April 20, 2012
I just got a similar notice yesterday from Wells Fargo that they were going to start charging me $15/month for my checking account. I called and the first person was not helpful. But then she passed me to a banker who did an account review.
The banker was able to downgrade me from the "complete advantage" to the "way to save" checking account. The former is $15/month (waivable if you have a $7500 balance, which I don't). The latter is $10/month (waivable if you have at least $700/month direct deposited, which I do). Either account can have the fee waived if you make 10 debit card transactions a month (I don't). There were other ways around the fee too -- like automatic transfers to savings, etc. So if you want to stay with your bank, it might be worth a few minutes of leg work.
posted by mcgsa at 2:53 PM on April 20, 2012
This thread is closed to new comments.
posted by Ideefixe at 7:22 PM on April 19, 2012