Most adults commonly have one or more accounts at a credit union or bank. You may have had your account with the same financial institution for a long time and not have given much thought to switching. But the truth is that there are some good reasons to move accounts, and doing so could save you money.
At Leaders Credit Union, we work closely with our members to champion their financial goals and help them make the most of their money. Many of our members come to us because they decide to move their financial accounts to a credit union. So, with that in mind, here are six reasons to move accounts, plus our how-to guide to make the process as stress-free and straightforward as possible.
There are some good reasons to consider switching your bank account from one financial institution to another. To help you understand why and when you might want to switch, here are six of the most common reasons to consider doing so.
The first reason for switching bank accounts is also the most obvious one. If you’re paying fees that are high, or if there are hidden fees deducted from your account every month, then it may be time to consider finding another financial institution to entrust with your money.
Some financial institutions charge monthly fees for checking accounts or savings accounts. While these fees may sometimes be tied to your balance—or have transactional conditions—you may still find that you can get a better deal elsewhere.
Most financial institutions pay some interest on savings accounts and some may even pay a small amount of interest on your checking account balance. If you research and find out that your bank is paying less than other financial institutions in your area, you might consider moving your money to a place where it can earn a larger return than it is now.
Credit unions, including Leaders Credit Union, pay their members dividends and interest are typically higher than other financial institutions because credit unions are member-owned. If you want to put your money to work for you, then switching to a credit union makes sense.
When it comes to managing your money, the importance of quality customer service can’t be overstated. If you have questions or concerns, you want to be sure that you can walk into your local branch, call a customer service number, or use live chat on a website or app to get the assistance you need.
One benefit of smaller institutions and credit unions can be more personal and accessible customer service. If you’re not getting the help you need with your current financial institution, it may be time to move it to someplace where service is a priority.
Online banking services have become increasingly important to consumers, who expect to be able to make deposits, transfer funds, pay bills, and get information about their accounts online or via a mobile app at any time of day or night.
While most banks and credit unions have moved to embrace online and mobile services, some have better options than others. If you want online services that your current financial institution doesn’t offer, it might make sense to move your account to an institution that has the robust services you need.
One of the most common reasons people move bank accounts is because their life circumstances have changed. Here are some examples:
Switching banks in one of these circumstances makes a lot of sense because it can minimize stress and make your money more accessible than it would be if you stayed where you are.
Just as online and mobile services are important, so is having a local presence. If you bank with an institution that doesn’t have enough ATMs or branches in your area, it can cost you time and money.
Paying foreign ATM fees or driving for miles to find a service branch may be reason enough to break up with your current bank and open an account elsewhere.
The prospect of switching bank accounts may feel daunting, but it’s not as complicated as you might think—and it doesn’t need to be stressful. Here are the steps you’ll need to follow:
Following these steps will help you close your old bank account without unnecessary stress or difficulty.
One of the questions we are asked most frequently is whether switching bank accounts will affect your credit score. It’s a good question to ask because many financial transactions do impact your FICO® score.
The good news is that if you follow the steps we’ve listed above, moving your bank account from one institution to another should not impact your credit score. Most financial institutions do not typically require a hard credit check when someone opens an account, so you won’t get a temporary dip in your score the way you would if you applied for a credit card or a loan.
The most likely issue that could result in a dip in your score would be failing to update automatic bill payments and then, ignoring prompts and reminders to update your bank information. After you switch accounts, it’s essential to monitor your email and texts and take immediate action if you get any notification about a payment not going through. In most cases, it will take only a few minutes to update your bank information and that should be enough to avoid any negative impact on your credit score.
If you’re not happy with your current bank, it may be time to find a new one—particularly if you’re paying fees you don’t need to pay, or you’re dissatisfied with customer service. The six reasons we’ve listed here can help you to understand whether it’s time to make a switch.
Are you in search of a new financial institution with competitive rates and excellent customer service? We hope you’ll consider Leaders Credit Union! We encourage you to read more about our membership benefits and open an account today.