Author Topic: Switching checking accounts  (Read 6010 times)

Neustache

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Switching checking accounts
« on: July 11, 2014, 01:42:17 PM »
My current bank just upped the monthly service charge to $2.00 a month.  No...No more I say. 

My credit union offers 4% on up to $1500 in a savings account if you open up a checking account.  So I'll no longer be charged $24 a year for checking, but I'll make money with the money that's just currently sitting in checking.  Woot.  (Yes, I keep about 1 months of funds in checking as a buffer, at least this way some of it will be making some interest).

So...anyone done the whole switcheroo?  It just feels like there's so much to remember to do.  They offer a switch kit, but with all my bills that are paid automatically (some are not monthly, but yearly) I feel overwhelmed thinking about it.  But I must do this.  Preferably before I get charged the $2.00 again!

gimp

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Re: Switching checking accounts
« Reply #1 on: July 11, 2014, 01:43:43 PM »
I'm switching now. Bit of a long process. I need to make sure nothing is getting charged to my old account, draw the money down, until I can eventually close it. I'd take at least a month to make sure all automatic payments are switched over.

RyanHesson

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Re: Switching checking accounts
« Reply #2 on: July 11, 2014, 01:53:34 PM »
I'm in the process of doing the same. My reasoning is just to help me get a new credit card though.

frugaliknowit

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Re: Switching checking accounts
« Reply #3 on: July 11, 2014, 02:00:34 PM »
Screw the big banks.  They thrive on their big names and their numerous ATM's.  They heist you when you travel overseas and have so many requirements.

Cheddar Stacker

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Re: Switching checking accounts
« Reply #4 on: July 11, 2014, 02:08:14 PM »
I changed maybe 7 years ago and didn't find it that difficult. Change your direct deposit, setup the online bill pay, carry on.

I agree with the screw the big banks sentiment. I moved from US Bank to a small local bank that pays a high interest rate on checking as well.

You might want to consider looking at online banking like capitalone360 as seen here: http://forum.mrmoneymustache.com/reader-recommendations/new-sale-at-capitol-one-until-july-3/

I missed out on this but apparently it's common for them to offer deals like this. I know they pay a high interest rate on checking as well.

Doomspark

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Re: Switching checking accounts
« Reply #5 on: July 11, 2014, 02:17:45 PM »
It's really not that painful.  Just requires some planning.

Open a checking account at the new institution (and a savings acct to go with it if you so desire).
Set up the online banking
Switch your direct deposit

And if you're paranoid, wait a month to make sure everyone's getting paid before closing your old account.

arebelspy

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Re: Switching checking accounts
« Reply #6 on: August 11, 2014, 09:25:34 AM »
I'm a big fan of Schwab online banking, if you don't deposit cash much.

As far as the actual switch, you'll probably want a month or two overlap to make sure everything's switched over, but the easiest thing to do is look at your last few months of statements and see what activity you've had, and then switch each thing over to your new bank.
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Will

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Re: Switching checking accounts
« Reply #7 on: August 11, 2014, 09:38:57 AM »
I'm a big fan of Schwab online banking, if you don't deposit cash much.

Why?

Scandium

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Re: Switching checking accounts
« Reply #8 on: August 11, 2014, 11:01:25 AM »
I'm a big fan of Schwab online banking, if you don't deposit cash much.

Why?

I researched a bunch of banks a while back and ended at Schwab too. Virtually no interest on checking or savings so don't keep cash, but they have no fees, and reimburse all ATM fees. So use one of those $3-4 ATMs in a bar and you get the money back. I don't take out cash much but it's pretty nice. Also no fees abroad, although still get the Visa exchange fee. Schwab customer services is also pretty good.

Like most banks now you can also deposit checks by taking a photo through their app, so I don't have a problem not having a branch.

frugaliknowit

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Re: Switching checking accounts
« Reply #9 on: August 11, 2014, 11:12:22 AM »
To make things easier going forward, when possible set bills to be paid via a rewards credit card instead of via your checking account.  This way, when you want to give your bank a "boot", it is one less task to be done, plus you earn points for doing so.

No, it's not that difficult to make the switch.  As others have said, overlap for a while to make sure everything works before you throw the switch.

arebelspy

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Re: Switching checking accounts
« Reply #10 on: August 11, 2014, 12:39:08 PM »
I'm a big fan of Schwab online banking, if you don't deposit cash much.

Why?

Big reason: You can withdraw money at any ATM in the world, and Schwab reimburses you the ATM fees - so you basically have access to cash anywhere, instead of looking for an ATM for your specific bank.

No foreign transaction fees.

Easy online access, check deposit, etc.

It's simple, clean, fee free, and has lots of perks.

The downside: you can't deposit cash.  :P

I don't use much cash, so it's not a big deal.  You just need to spend cash when you get it.
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Neustache

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Re: Switching checking accounts
« Reply #11 on: August 12, 2014, 06:00:45 AM »
Ooooh...good point on paying with a credit card - can you pay all bills that way (mortgages?) or just utilities?  That's the bulk of our bills - utilities/mortgages/1 cell and then random other things.  I have the Chase Freedom card, and we aren't using it for everything (new to the rewards card idea, was anti-credit cards for so long). 

As far as the free ATMS and such, we so rarely need cash and I'm not an international traveller (yet) so not sure I need that perk now.  But good to know in the future!  We can get cash out at supermarkets so if we plan ahead, we can pull then.  The only thing we used to need cash for regularly were my DH's haircuts, but he cuts his own hair now so we rarely need an atm for cash. 

arebelspy

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Re: Switching checking accounts
« Reply #12 on: August 12, 2014, 07:23:09 AM »
Indeed, I rarely use cash, so I never have it with me, so when I do need it, it's convenient to be able to get it from anywhere.

And since there's no real advantage I can see to having brick and mortar banks, when I switched it made sense to go to an online, non-location dependent one.  YMMV.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
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Neustache

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Re: Switching checking accounts
« Reply #13 on: August 12, 2014, 07:32:44 AM »
Ahhh...I'm weird in that I actually like going in to the bank to do business.  Not pull cash, necessarily, but I HATE the phone, so much so that I don't have a cell.  So when I need to talk to someone I run up to the store which also has my bank and I chat with someone.  I also really like making payments on my mortgage in person.  Kind of makes it more fun than just hitting transfer in the online banking. 

Timmmy

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Re: Switching checking accounts
« Reply #14 on: August 12, 2014, 09:04:18 AM »
To make things easier going forward, when possible set bills to be paid via a rewards credit card instead of via your checking account.  This way, when you want to give your bank a "boot", it is one less task to be done, plus you earn points for doing so.

No, it's not that difficult to make the switch.  As others have said, overlap for a while to make sure everything works before you throw the switch.

Won't you have the same problems with a change in credit card number?  Perhaps if your card number gets compromised?


Keep a list of all automatic payments that you set up.  Go through and change them and you're done.  Not hard at all. 

I'd not hesitate to close and withdraw all my money today if need be.

Freedom2016

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Re: Switching checking accounts
« Reply #15 on: August 12, 2014, 09:26:22 AM »
We are in the midst of switching from a brick-n-mortar bank to Ally: free interest checking, free overdraft from a linked savings account, refund of all ATM fees, free bill pay. I'm also able to make free transfers to my business checking @ Bank of America (also a free account) and CapOne360 (we are keeping some funds there to diversify).

I set up as many auto-payments on a CC as possible, but some utilities don't allow it - e.g. water and electric bills have to be paid from a checking account.

I will say it was a bit of a laborious process but absolutely worth it for getting rid of all the fees.

le-weekend

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Re: Switching checking accounts
« Reply #16 on: January 25, 2018, 03:41:37 PM »
Figured I'd post here instead of starting a new thread.

I'm considering the PNC "virtual wallet" because they're offering a cash promotion:
https://www.pnc.com/en/personal-banking/banking/checking/campaigns/checking-vw-tiered-offer.html?WT.mc_id=VW_Display_GENERAL_211003630|94376536&e=3147325&m=d

But it's not clear to me if:
1) Each direct deposit amount must be at least $2,000?
2) Or the TOTAL of all funds direct-deposited must add up to $2,000?
3) Either way, what is the time limit?  (Usually these promos specify the transactions must take place within 60 or 90 days of account opening.)
 

Rosy

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Re: Switching checking accounts
« Reply #17 on: January 25, 2018, 06:09:20 PM »
Have a look at this in-depth review of the offer incl how to avoid fees etc. before you make your final decision.
https://www.doctorofcredit.com/pnc-300-checking/
Doctor of credit is a reliable blog focused on bank bonus and credit card bonus information. You might find a better offer for your state in his list of best Jan bonus.

To answer your questions:
1. The offer is good until 3-31-2018, but sometimes banks yank the offer early.
2. Yes, you need to direct deposit a total of $2000 ..., so you could have two deposits adding up to $2K
3. 10 transactions and direct deposit must happen within 60 days.

Your link already had all this information if you scroll down to the fine print:)

I think there are much easier and better offers out there if you are only interested in the bonus. Have a look at the best bank bonus offers for Jan 2018 at the same site.