What Do I Need to Know About Switching Banks?

Switching banks sounds like a hassle, doesn’t it? How many of us have procrastinated doing it even though we weren’t happy with our bank's offerings? 

If you fall into that category right now, you might be happy to learn that making the switch isn’t actually that big of a hassle. Let’s look at how to do it.

Why Switch Banks?

Is there really any point to switching banks? Aren’t they all kind of the same?

While it can be difficult to distinguish between some institutions’ services and options, there are definitely banks out there offering what you need. Remember, your bank works for you; if you’re not happy, they should be striving to do better.

Valid reasons for switching banks include:

• There isn’t the kind of account you want.
• The fees are too high.
• The interest rates aren’t high enough.
• The mortgage or loan offered is insufficient.
• A lack of financial help or guidance.
• Geographic inconvenience.
• Poor customer service.
  

How To Switch Banks

If your current financial institution isn’t coming through for you, here are some steps for switching banks:

1. Research Your Options

If there’s something specific your current bank isn’t giving you, look for other banks that will provide it for you. Many people get loans from financial institutions that aren’t the ones that hold their checking or savings accounts. Similarly, many choose to invest with a separate institution. Loyalty is a great quality when it comes to friends and family — but this is business.

It’s also worth looking up reviews to find a bank that ranks high for customer service. And consider the benefits of banking with a local institution. If you’re in Denver, maybe a Colorado-based bank can provide what you need better than other options can.

2. Open Your New Account

Once you’ve made your choice, go to your bank and open the account(s) you want. Bring the ID you need and ask any questions you have to ensure you’re making the best choice for your purposes.

3. Get Online

Next, set up online banking. If you found this blog, you’re tech-literate enough to handle online banking. If your new bank has an app, you may wish to download it.

4. Set Up Automatic Deposits and Withdrawals

You don’t want an employer, customers or the government depositing money in your old or discontinued account. And you don’t want automatic withdrawals coming from a canceled account either. Notify all the people and institutions with whom you have direct deposits or withdrawals. This includes any subscription services for which you use debit.

5. Withdraw Your Money and Cancel Your Account

Now it’s time to say goodbye to your old bank. Ask to withdraw all your money or transfer your funds to your new financial institution. They may ask you to reconsider, but they can’t stop you. Once you have your money, close your account and move on to your new, better banking relationship.

 Want to know more about switching banks? Contact a Vectra Bank professional today.