The Big Bank Switch series is an inside look at Matt’s journey through switching his personal primary banking. By using a similar process you may save time and concern over doing the same.
Shifting From Big Banks
At the end of last summer Bank of America announced they were going to begin charging fees for the use of debit cards. It also started to leak that other banks were planning the same move. Part of the reason they were going to start this practice of charging for using debit cards is because of the lost revenue from no longer being able to charge for negative balances in checking accounts and the new rules on how they handle credit card rates and fees. The backlash was amazing. On social media sites people went nuts. It forced Bank of America to back off the fee (I am sure they will come up with something new), but not without damage. In October 2011 Credit Unions gained 650,000 new customers and $4.5 billion was move out of major banks (according to ABC News)
I am beginning a journey that I have wanted to do for years. I am moving our personal primary banking from Bank of America. I make no secret about how I feel about big banks. I don’t care for them. I think they are part of a larger problem which includes a broken system. But, for years I have been a hypocrite and part of the problem by having my accounts there.
Why I Put It Off
The primary reason I put it off for so long is laziness. I was concerned about all the things that are linked to the account. I do my bill pay through our checking which meant I would have to re-input all the bills again (lazy). I am worried I may have something being auto-paid and may forget to switch it over (excuse). I didn’t know what bank I would move to. Bottom line, I needed a push to make the change.
Why I Am Doing It Now
My wife, Natalie, found out she could be a member of NASA Federal Credit Union through her employment at Discovery. Since they also have a local branch right down the street in Rockville (and several in the DC/MD/VA area) I decided we should make the switch. My next move? I put it off again. Finally, in an effort to complete a New Year’s resolution, I decided I would not only make the switch but I would also make it a series of posts and write about the switch and possibly stumble upon an easy system to make the move with not much hassle. I think I have accomplished it.
Regionals and Credit Unions
I know not everyone has access to a credit union but you may be surprised how easy it is to be considered a “member”. If there is one in your area you are interested in try giving them a call and asking what you need to do to be a member. Yes, regional banks are smaller and are never bailed out by the government BUT they are FDIC insured. Also, and this is just my opinion, but if a regional bank is still in existence after what happened in 2008 then it is probably a pretty solid bank. The downside to both regionals and credit unions may be their websites so check them out to make sure they have all the functionality you are looking for.
If you have been thinking about switching banks then start thinking about where you will move. In the next post, we’ll start the process of making the switch.
