How to Switch Checking Accounts Hassle-Free
You don’t have to settle for a so-so checking account. While historically, people didn't tend to change financial institutions once they opened an account, that’s no longer the case. In fact, millennials have no problem switching. Must have been all that Pog trading we did way back when.
While learning how to switch checking accounts hassle-free may not bring as much instant gratification as snagging an epic hologram Pog with your go-to slammer, it is a small way to make a big difference in your financial health!
So, let’s step away from those fond recess memories and help you determine the best place to keep your cash. And if you need help choosing the right checking account, keep in mind that credit union checking accounts available through your local credit union can be an excellent option. But first, let's see what it takes to make the switch.
Assess Your Current Checking Account
Start by reviewing the terms and fees associated with your current account. Look closely at monthly maintenance fees, overdraft charges, and ATM fees.
Next, think about your actual banking needs and financial goals. Are you looking for lower fees or a more personalized banking experience?
Decide what features and services matter most to you, and assess whether you've got them with your current account. Are online and mobile banking capabilities a must? Do you need a robust ATM network or a strong focus on financial education? For example, credit union checking accounts often come with experts who can help with personal finance pro tips.
Finally, identify any pain points or issues with your current account. What could be better? Are you consistently raking in high fees? Is your financial institution prioritizing your needs — or theirs? Is there a difference between your checking and savings?
Through careful evaluation, you can decide whether your current checking account aligns with your financial goals and whether it is time to explore other options like credit union checking accounts that better suit your needs and preferences.
Research Potential New Checking Accounts
Not all checking accounts are created equal. Know what's essential while you do your homework. Look for low fees and high interest rates to let your money work for you. Make sure your checking account offers convenience, and ask if there are any rewards like cash back or travel perks.
Then, it's time to shop.
Knowing what you want as you do your research will help you focus and find a checking account that aligns with your financial goals and lifestyle. Don't settle. You can explore the different types of checking accounts available from the comfort of your couch. But look into traditional brick-and-mortar options as well as online-only accounts. Each has its advantages, so it's better to know which one will give you what you want (What you really, really want).
Remember to include credit unions in your research. Credit unions prioritize member needs instead of shareholder profits. Using a community-focused institution often yields competitive terms, personalized service, and a strong emphasis on member satisfaction.
Feel confident about your choice by comparing offerings from a wide range of financial institutions — assess their fees, interest rates, features, and customer service. It's the best way to ensure you're choosing the right checking account that not only meets but also exceeds your expectations.
4 Easy Steps to Switching Checking Accounts
You've done your homework. You've found your local credit union. Now, let's see how to switch checking accounts hassle-free. There are only four things you need to do.
1. Open a new checking account.
Every bank or credit union has its own policies for setting up new accounts, but typically, you'll need to bring some ID, like a driver's license or passport. They'll also match your Social Security number with your account. You may need proof of address, proven with a mortgage statement, rental agreement, or utility bill, to ensure you've got a valid residence.
Nearly everyone is eligible to join a credit union in their community, and your docs will help make the process move quickly. Once they confirm that you're good to go, you can complete the application process, which often includes a minimum deposit. These requirements vary, so just ask ahead of time.
2. Fund your new account.
Out with the old and in with the new! Funding the new account is actually one of the easiest parts. When it's time to make the switch, you can transfer funds from your old account to the new one. An electronic transfer from your existing account to your new one is quick and easy. You'll usually need your new checking account's routing and account numbers, but you can always visit a branch to find out what they recommend.
Don't forget to let your employer know you've changed accounts so your next paycheck lands in the right place. You can let them and other income sources know your new account details. The process is seamless, and staying continuously well-funded is critical to paying your bills on time.
3. Update your automatic payments and transfers.
While you're thinking about bills, take note of all the recurring bills you'll need to transfer over to draft from the new account. It may seem tedious, but it's pretty simple if you make a list. Just check things off as you go, and make sure to update your payment information with the service providers you use often.
4. Close your old checking account.
With any big change, it's best to get some closure. Closing your old checking account is a pretty straightforward process. Start by withdrawing any remaining funds from your old account to avoid fees or complications. You can either go in person or just pop by an ATM.
Then, call or use your old financial institution's online portal to officially let them know about the breakup. Some require you to fill out an account closure request — they want it in writing. But once all your outstanding transactions have cleared and your balance is at zero, you're done and ready to move on.
Avoid Common Pitfalls
Although the process of switching checking accounts is relatively straightforward, errors can occur. Here’s how to avoid common issues that may arise.
Time it.
When it's time to switch, timing is everything. Make your transition when it doesn't cross over with any bills you're auto-drafting or any payments you're waiting to clear. You'll want to time it just right to avoid overdraft fees or missed payments.
Watch it.
Keep a close eye on both your accounts during the transition to ensure things are deposited and drafted correctly.
Double-check it.
Check up on your checks. Everything should be automatic, but make sure all checks and transactions are correctly cleared, at least during the first month of your transition.
Secure it.
You'll have a lot of personal info out there during this process, so keep it safe. Follow all the safety precautions you know to guard your personal data and account information. And if you suspect a problem, report it right away.
Maximize the Benefits of Your New Checking Account
You've made the leap! Now it's time to settle into your new checking account bliss (especially if you went with a credit union checking account!). Since you did all your research upfront, you should be well-versed in all the new account features and benefits. Make sure you take advantage of them.
Just like when you get a new phone, you'll want to set up your new account in the beginning to do everything you need it to do. Be sure to set up your alerts and notifications to stay informed about your account. And monitor it regularly to track your spending and savings.
Further Resources on Choosing the Right Checking Account
If you're looking to learn more about how to switch checking accounts hassle-free, take a look at these hot tips:
- Follow a checklist. Download this step-by-step guide to ensure you don’t overlook any essential parts of the account opening process.
- Read the fine print. You should always know what you’re in for when opening a new account.
- Monitor your account activity. Learn how to keep better track of the money you’ve put in your new checking account.
Change is Always an Option
Now that you know how to switch checking accounts hassle-free, take a look at our Credit Union Locator Tool to find the credit union nearest you and learn all about the many advantages of credit union checking accounts. Like those sharp-angled slammer tosses back in elementary school, the power to act strategically on choosing the right checking account is in your hands!
