Breaking Up (With Your Bank) Isn’t So Hard To Do

So your checking account is at a bank—like the U.S. MegaBank of Wealthy Stockholders… That’s okay, we won’t hold it against you. But your bank keeps adding more drama (and cost) to your relationship with more fees. Again? Well, keeping their stockholders happy is job one. Unfortunately, keeping YOU happy is job two … maybe even three or four. Don’t keep playing second fiddle to those huge entities out there in financial space. Break up with your bank! That’s right, cut the ties. Ditch the deviance. Move on to someone who will appreciate you and treat you with respect. And hey, we know just the credit union!

But first, the bank break-up. How do you do it? What needs to be done to cleanse yourself of that big bank smell? The process may seem a bit involved (and it is somewhat), but banks have it set up that way to dissuade you from leaving them. Are you going to succumb to their sorted ways? We didn’t think so, so let’s take a look at how to escape the grip of your bank.

Preliminary Homework

• Check your bank statements to pinpoint the accounts (saving, checking, etc.) you have with your bank(s). If you have any joint accounts, both people on that account(s) will have to make the trip to the bank.
   
• Do you have any loans with the bank(s)? If so, check to see if closing your checking account will raise your rate. Many times a bank will offer lower rates to those with a primary checking account and minimum balance requirement. If you can pay off the loan balance, do so; that’s one less thing to worry about. If you can’t pay off the loan, consider refinancing or consolidating at your credit union.
   
• STOP using any deposit accounts. You want them to clear all transactions for a nice, clean break. This usually takes about two weeks. You can keep track of this information via online banking.

Walk the Walk

• Stride right into your bank with your chin held high and tell an employee you want to close your account(s). They’ll likely act surprised and ask why you’d want to do such a thing, so have a reason ready when you walk in. Or not. There’s no law saying you need to give them a reason.
   
• The bank employee will begin the process of closing your account. Don’t fall for any scripted reasons for staying. If they start crying, don’t cave. Remember, you’ve made up your mind. The relationship is O-V-E-R over.
   
• Ask about any open lines of credit you may have tied to a deposit account.
• You will receive an “account closed” confirmation letter, or the bank will inform you of their intention to mail a copy to you. Keep this information on file for five years.

The Afterglow

• Those remaining bank checks and debit cards? Shred ‘em! You don’t want to use them by mistake and have to make a return trip to the unfriendly confines of the bank to straighten out things. Plus, you might feel like a weight has been lifted. Talk about closure!
   
• Now here’s the good part, head to your credit union to open your new accounts. Of course, we recommend Vantage for all your banking needs…we hear they’re very nice. Make note of the feeling of liberation. Breath in the fresh air of financial freedom. Revel in it!
   
• If you make use of automatic payments, be sure to change your relevant information on each account* (routing number/account number for checks, credit card number/expiration date, etc.) so payments are not interrupted.

Now take a breath. Exhale. The break-up is complete––you’re free! No more financial relationship where you do all the giving. By joining a credit union (e-hem…Vantage), you’re now a member-owner. Yes, an owner, with voting rights and a voice in how your financial institution is run. You belong to a cooperative where both sides win! Go ahead, pat yourself on the back. You’ve just improved your financial life substantially!

If you have any additional questions about making the switch from your bank, feel free to call or chat us during business hours. We’re ready to help you feel the love!