Switching banks or credit unions can be hard. Altering something we’ve grown accustomed to requires coordination and effort, but there are steps you can follow to make the process of changing financial institutions smoother.
Research & Find a New Credit Union or Bank
When choosing a new credit union or bank to move to, it’s important to do your research. Think about what you want from your financial institution. Whether it’s lower fees, community involvement, the latest technology or the best interest rates, choose a financial institution that will best meet your needs—both now and in the future.
Keep in mind that you do not need to have all your accounts at one bank. Just remember to keep the number of accounts with different institutions manageable.
Identify Payments & Direct Deposits Tied to Your Old Account(s)
So, you’ve found a new credit union or bank to open an account with, now what?
First, you need to know what payments and direct deposits are tied to your old account. This includes payroll deposits, rent or mortgage payments and other automatic payments such as utilities, subscriptions and account transfers.
To simplify the process of changing banks, go through your bank statements and search for those types of deposits and payments. Go through at least three months to a year’s worth of statements so that any less frequent payments can be noted. Doing so is also a great opportunity to clean up your finances. You may be surprised to learn what lingering subscriptions you’re still paying for!
Transition Payments & Direct Deposits to Your New Account(s)
Find everything tied to the old account? Great! It’s time to start transferring those to your new account.
Start with your direct deposits, such as payroll from an employer. You can obtain your direct deposit information from your employer so the credit union or bank you chose can help you move bank accounts.
Now, move on to your automatic bill payments and subscriptions.
Leave your old account open with a bit of money for a period of time to ensure that you can process everything through your new account. For example, setting up bill pay with your new institution may take time. Having access to the old account with some money can help if you need to pay a bill last minute.
Further, set up the ability to transfer money between the two accounts. Doing so can be helpful during the transition period by allowing you to deposit funds to cover bills or other payments that are still tied to that account.
Close Your Old Account(s)
Once you’ve ensured all deposits and payments function properly under your new account, it’s time to empty and close your old account.
The process of closing your bank account depends on the financial institution. Some require you to be present in a branch to close an account, while others allow you to close bank accounts and switch banks completely online. If you’re worried about how much it costs to switch banks, be sure to ask your old credit union or bank in advance about any account closing fees you may need to pay.
Finally, you’ll want to ensure that any remaining checks and debit cards tied to the account are safely destroyed.
The pain of change may seem overwhelming, but finding a financial institution that meets your needs and is a true partner in your financial journey can make the change worth it. For more tips on how to choose a new bank or credit union, contact Centris Federal Credit Union. When you’re ready to make the switch, stop by a local branch or give us a call at (402) 334-7000 to learn how we can help you reach your financial goals.
