Are you one of the millions of Americans contemplating a change in banks this year? Recent events like the FinTech and Yotta debacles have sparked a surge in individuals considering switching banks. If you find yourself in this situation, rest assured that you are not alone. The good news is that there are numerous banking options available to cater to your financial needs. However, the process of switching banks, although relatively simple, requires thoughtful consideration to ensure that you select a bank that aligns with your long-term requirements. To guide you through this transition, here is a comprehensive step-by-step guide to facilitate a smooth switch:
Explore Your Banking Options:
– Changing banks typically stems from a variety of reasons, whether it be due to a relocation, dissatisfaction with fees, or disapproval of a bank’s investment choices. Before making the switch, compile a list of features and services you desire in a new bank.
– Consider factors like a socially responsible bank, a checking account with interest earnings and minimal fees. Take the time to thoroughly research and explore diverse banking options to find a perfect fit for your financial needs.
Fintech vs. Bank:
– Recent incidents like the FinTech crisis, exemplified by the Yotta bankruptcy affecting numerous individuals, highlight the importance of selecting a bank over a FinTech entity. Opt for a primary bank that is FDIC-insured to safeguard your funds.
– Ensure your chosen bank offers fee-free accounts, and consider consulting our list of the best free checking accounts for viable options.
Start Using Your New Account:
– As you open a new account, begin utilizing it immediately. Transfer funds from your old account to the new one and initiate the process of transitioning all your financial activities.
Switch Your Direct Deposit:
– To fully integrate your new account into your financial routine, redirect your income streams to your new bank account. Coordinate with your employer or clients (if self-employed) to update your direct deposit information promptly.
– Remember to consider other income sources like government benefits, annuity income, pensions, and investment earnings that may need to be rerouted to your new account.
Switch The Bills Connected To Your Old Bank Account:
– Apart from redirecting your income, update automatic bill payments to reflect your new account. Review past account transactions to identify all recurring payments accurately.
– Ensure that your new account has sufficient funds to cover upcoming automatic payments and update payment information on various platforms linked to your old account.
Monitor Your Old Account:
– While it may be tempting to close your old account immediately, maintain it for a brief period to avoid missing any pending bills or subscriptions linked to the account.
– Monitor the account for a month or two to confirm no unexpected charges and update recurring payments with your new account details as necessary.
Close Your Old Account:
– After ensuring all bills and payments have been successfully transitioned to your new account, transfer any remaining funds from your old account and proceed to close it.
– Follow your bank’s specified procedures for account closure, which may involve online submissions, phone calls, or written requests. Be diligent in finalizing the closure to prevent any lingering account activities.
In conclusion, while switching banks may require time and effort, finding a bank that suits your financial needs can be a rewarding endeavor. Select a bank that aligns with your values and objectives to effectively work towards your financial goals. By following this step-by-step guide, you can navigate the process of switching banks seamlessly and ensure a smooth transition to a more suitable banking option.
Leave feedback about this