Money Talks News: Steps to switch banks - Toledo News Now, News, Weather, Sports, Toledo, OH

Money Talks News: Steps to switch banks

(Source: AP Images) (Source: AP Images)
Money Talks News -

A recent poll shows the reason consumers want to leave their banks is from rising fees, however many don't switch banks because of the hassle.

Consumer reporter Stacy Johnson has three tips to help make a smooth switch.

Rising fees on everything from checking accounts to ATMs. High interest on loans. Low earnings on savings. It all can happen when a good bank goes bad.

But there's no reason to put up with bad banking behavior. Shop around. Smaller banks and credit unions often offer better rates and lower fees.

But before breaking up with your bank, beware! Don't make the split more hassle or expensive than it has to be.

First, ask your new bank or credit union if they offer a Switch Kit. They usually come with forms to change direct deposits and automatic payments, and even notices to tell your old bank you're closing your account.

But don't close it entirely. Leave a cash cushion in that account for payments you might have forgotten, like magazine subscriptions or maybe gym dues. Leave that cushion there until you're absolutely positive you're cool.

Third, make sure you can view your new account online, and follow the action, daily at first. Make sure your employer is depositing to it, and your creditors are withdrawing from it.

Bottom line? Banks may want you to think it's a huge hassle to switch but it's probably not as bad as you think. So don't put up with bad banking behavior. Vote with your feet. And if you need more help, I've got tips waiting for you right here at MoneyTalksNews.com. Just do a search for "Switching Banks". 

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