5 Things to Do Before Switching Banks
Are you considering breaking up with your bank? You’re not alone. A recent study found that 12 million Americans want to do just that. Whether you’re switching due to unfavorable terms, a change in values, or pure convenience, it’s a seemingly intimidating process. Here are five things to do that will make switching banks smart, fast and easy.
- Make a List of What You’re Looking For
If you’re switching banks for any reason besides relocation, chances are it’s because your current bank lacks something you want or need. Before switching to a new bank, determine what’s missing and what you’d like to keep to make sure your move is an upgrade, not a downgrade. Research what matters most to you, like the bank’s rates, fees, conveniences, customer service reviews, and values, before you make a final decision.
- Consider the Benefits of Online “Branchless” Banking
If you’re in search of better rates, fewer fees, and greater convenience—and don’t see the value of in-branch services—an online bank could be perfect for you. Online banks like BrioDirect have no physical branch to maintain and a much lower overhead, so they can pass those savings on to their customers.
- Make Sure They’re FDIC Insured
When you keep your savings and investments at a bank, you assume they’re safe and sound, no matter what. It is your money, after all, they’re just holding it for you. The truth is, not all bank products are insured by the Federal Deposit Insurance Corporation. FDIC insurance protects funds you maintain in your bank account(s) up to certain stated limits in the event the bank closes. To make sure the bank product you’re considering is insured, ask directly, look for the FDIC logo on the bottom of their website, or confirm they’re listed on the FDIC site. To see how much your accounts are insured for, use the FDIC’s Electronic Deposit Insurance Estimator (EDIE).
- Understand That Transferring Money to a New Bank Takes Time
It takes less than 60 seconds to take money out of an ATM, so that’s how long it should take to move money between banks, right? Wrong. The actual process of transferring your funds can take a number of days—and that’s a good thing. Instant money transfers leave your financial information vulnerable to fraud, and when it comes to all of your money, you want your new bank to be as careful as possible. Ask what the average transfer timeline is and plan accordingly to make the transition as smooth as possible.
- Ask Your Bank for Help
Opening a new account may feel like an overwhelming task, but most banks make the process easy and seamless and many allow you to do it online from the comfort of your own home. Need help? Ask your new bank! The right banking partner will be happy to walk you through the process and answer any questions you have.
Now that you’ve simplified the prospect of switching banks, you’re ready to find the right one for you. Remember to choose an FDIC-insured bank with the top rates, low fees, modern conveniences, and customer support that best fit your needs and lifestyle. If that’s an online bank with no branches at all, see what switching to BrioDirect can do for you.