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Credit unions exist to give people an alternative to a traditional bank. Many of our members have previously banked at large regional or national institutions. There are a multitude of reasons someone may be ready to switch financial institutions, but studies continually show that even if a person may want to switch – they don’t. Why? Changing banks is perceived as a huge hassle and is why someone may stick with a bank they aren’t happy with. We created this changing banks checklist to help you understand what the process involves so that leaving your current financial institution is no longer overwhelming.

Top Reasons to Switch Banks

If so many people are reluctant to switch, what finally changes their mind? This study by the Sells Agency shows the top reasons people switch banks.

• 41% changed because they moved
• 14% changed because they got married or divorced
• 6% changed because their job status changed

While many feel forced to complete a switch after these lifestyle changes, others fail to switch for other important reasons like out-of-control fees, poor customer service, or technology that’s stuck in the stone ages. This checklist for changing banks will help you take control of your situation and give you the power to switch banks for any reason.

Changing Banks Checklist

1. Research and come up with a plan

If you don’t already know where you want to switch your accounts, now would be the time to research what financial institution best fits your needs. Determine what features are most important to you, like free checking accounts, convenient locations, or cutting-edge technology. Once you know where you want to switch, start creating a strategy before you take any further steps.

Create a list of all of the ways you use your current bank, including various accounts and safe deposit boxes. If they are your primary bank, it’s likely you pay all of your bills through a checking account. Make a list of your direct deposit information and all of the bills you pay through automatic bill pay. This list will help you keep track of what payments you need to switch over to your new account. Some people find it helps to remove these payments from automatic bill pay and manually push them through until you have the new account set up and ready to go. That way any future payments do not accidentally draw from the old account.

2. Open your new account

Follow your new financial institution’s instructions for opening a new account. Often it is as simple as a driver’s license, social security number, and minimum deposit. Keep your old account open while going through this process. It will give you time to set up online banking and wait for your checks and debit card to arrive. Also, ask your employer to switch your direct deposit to the new account. Sometimes it can take a few weeks to process the direct deposit update, so continue paying bills out of your old account while waiting.

3. Change your payments to your new account

Once your paychecks are being directly deposited into your new account, you can update your bill pay information. If one direct deposit isn’t enough to cover necessary bills, transfer funds from your old account as needed. Since you already created a list of all of the payments drawn from your account each month in step one, you can simply go down that list and make sure each company has the new account information. Start with the bills that have priority due dates so you don’t miss any payments.

Keep your old account open for a month or two while the change in payments is taking place. This will help identify any bills or linked accounts you may have missed on your initial list.

4. Close your old account

After you made a month of successful payments through your new account, you can now close your old account. Just ask your bank what they need from you to officially close the account. If you have any leftover funds, you can withdraw them by cash or cashier’s check and deposit them into your new account.

In just four steps, you’ve successfully completed the change to a new financial institution! Don’t forget to ask employees for help if you need it. If you are switching to their financial institution, they will be happy to make the process easy for you.

For a visual guide, you can download our FREE Switch Kit now. The Switch Kit will cover all of the above steps in detail, so that you can feel confident about changing banks for any reason. Get the Switch Kit now!