You have had an account in a big bank for a long time. But today, as the banking costs are soaring and the world is changing, you are not able to afford your current bank’s rising costs and debt. This makes it perfectly understandable that you are not happy with their service. And, so, you have decided to change your bank and get a better one.
But before doing just that, you need to understand that there is a procedure to do just that. And here we bring to you, on how to switch to a better bank just five easy steps. So, that you are able to shift to a better bank, be safe from your old bank’s latches, and have no further repercussions to go through.
Begin your search
The first thing you need to do is to begin your search on the internet. Go through several different bank websites and read several articles able what makes a good bank. Then use the internet tools to compare details of different banks. Check for better rates and more interest in savings accounts.
Tip: Opt for smaller banks because in the beginning, all banks try their best to serve their customers better and give better rewards and create less debt. Even though they might become worse in the future, but currently, they are going to be massively generous and serve you like a king or a queen.
Make a list of all good banks that will be right for you. Maybe even book appointments with them, and hear their terms while showing genuine interest. And finally choose the one that you are completely sold on, while rejecting the others.
Check for options other than banks
There are entirely other ways through which you can avoid finding and choosing a bank entirely. These range from Credit Unions, community banks, e-money, and finally the revolutionary Blockchain.
- Credit Unions: Credit Unions are commodities that work in favor of their union members. Their whole purpose is to take care of their members’ financial needs and help you go completely away from the banking systems.
- Community Banks: Community Banks are banks that are created with the intention of taking the financial needs of a community in their own hands. The community banks generally charge less or even no interests for the people who are part of the community.
- E-money: E-money is one of the fastest internet methods of transferring funds. What this does is, it gives you an E-wallet, and then lets you make any kind of transactions whenever you want and wherever you want. Example: Paypal, payTM.
- Blockchain: Last but not the least; Blockchain is a disruptive technology that renders choosing a bank unnecessary. As, with Blockchain currencies like Bitcoin and Etherium, you can authenticate and keep track of all peer-to-peer money transactions, without any requirement of any bank in the middle. Blockchain technology is untapped but is already become very valuable.
Open and set up the new account
The next step after choosing a bank or a banking option is to finally sign the contracts and open the account. But while you are opening it, you need to be aware of the fact that all your banking work has been surmounted by your old account still. So, make sure you don’t forget to change your new account details for your utility bill, Netflix or Hulu service, your salary provider, etc. So, that you do not pay for things from your old account without even knowing.
Transfer your money
Now, once you have figured out your bill and salary details and where they will now be diverted to, you must transfer most of your funds from your old account to the new one. This can easily be done via the digital transfer or through certified checks. But they might take a few hours or days to arrive. But if you are in hurry, then you can pay a little higher fee and make transfers using the help of a wire transfer.
Close your account
Finally when you are done with transferring most, if not all your money, you must close your old account. You must not forget to just leave the account open. Because now a days, banks have started to penalize accounts every month if they do not have sufficient balance, so, if you transfer you money into a new bank, the debt on your old account can stack up. Make sure you formally close the old account and clear all its debts.
We hope we helped you in learning to how to change your banks.