Switching banks can seem like a big task, but with a little planning, it can be a smooth process. Whether you're looking for better rates, lower fees, or a more personal touch, moving your money to a new bank or credit union can be a smart financial decision. Let’s walk through the steps of how to change banks, using Jaden as our example.
Jaden, a recent graduate, just landed his first job and is thinking about his financial future. He's ready to buy a car and found that First Alliance Credit Union offers an amazing auto loan rate. After doing some research, Jaden realized that switching to First Alliance would save him money and give him better service. Plus, he loves the idea of being part of a credit union that focuses on helping its members, especially since he’s just starting out.
If you’re like Jaden and are considering a switch, here are a few reasons why it might be time to make the move:
Fees are adding up: If you're paying for every little thing, from ATM withdrawals to monthly maintenance fees, it's time to find a bank that offers more for less.
Poor customer service: If your bank isn't treating you right, it might be worth finding a financial institution that values you as a customer.
Hard to access your money: Whether it's because of inconvenient locations or clunky mobile apps, if getting to your cash is a hassle, that’s a good reason to switch.
So if Jaden is seeing his fees rise and is service dwindle, that is when he should switch banks.
Jaden knew he wanted to switch, but he didn’t just jump into the first option he found. He took the time to compare different financial institutions, looking at things like interest rates, fees, and customer reviews. He made sure First Alliance Credit Union check accounts met his needs, offering everything from direct deposit options to easy-to-use online banking.
When you’re switching banks, consider these factors:
Fees and Interest Rates: Look for a bank or credit union that offers competitive rates on savings and lower fees on accounts. Check out their savings account interest rates for more information.
Convenience: Make sure your new bank has branches or ATMs near you, or a solid mobile app if you prefer banking on the go.
Customer Reviews: See what other customers have to say about their experience. A quick look at online reviews can tell you a lot.
For Jaden, joining a credit union made sense. Credit unions often offer better rates and more personal service compared to big banks.
Once Jaden decided to make the switch, he followed these simple steps to ensure a smooth transition.
Step 1: Open a New Account
Jaden started by opening a new account at First Alliance Credit Union. He did this online, which saved him time. Many banks and credit unions let you open accounts online or in person. Make sure you have the necessary documents handy, like your ID and Social Security number.
Step 2: List Your Automatic Payments and Deposits
Before closing his old account, Jaden made a list of all his automatic payments and direct deposits. This included things like his paycheck, streaming subscriptions, and utility bills. This step is crucial to avoid missing any payments during the switch.
Step 3: Transfer Funds
Jaden transferred most of his money to his new account but left a little in his old account to cover any pending transactions. He set up his direct deposit with his employer and updated his payment information for all his recurring bills.
Step 4: Update Your Information
Jaden made sure to update his payment information with any services linked to his old account, like his mobile wallet and online subscriptions. Don’t forget to do this, or you might end up with a payment issue later on!
Step 5: Close Your Old Account
After confirming that all his payments were successfully transferred, Jaden closed his old account. He made sure to get a confirmation from his bank in writing, just in case any issues popped up later.
For Jaden, switching to a credit union wasn’t just about saving money on his auto loan. He also found that the credit union offered lower fees and better customer service compared to his old bank. Plus, as a member of a credit union, he had a say in how things were run—something you don’t get with a big bank.
Credit unions are often a great choice for families on a budget because they’re focused on their members’ needs, not making a profit. Whether you’re looking for lower fees, better loan rates, or just a more personal banking experience, a credit union like First Alliance can be a great fit.
Switching banks might seem like a hassle, but with a bit of planning, it can be a simple process. Just like Jaden, take the time to research your options, list your payments and deposits, and make the switch when you’re ready. Whether you're looking for better rates, lower fees, or just a more personal banking experience, First Alliance Credit Union could be the right choice for you. And remember, you’re not alone—First Alliance offers a free Switch Kit to help you every step of the way.