Everyone will probably agree that banks are not the most lovable institutions in the world, especially when you consider their low interest rates on savings accounts and high ATM fees. It’s even more frustrating knowing that these bank giants that received government bailout funds a few years ago are the ones that are hiking the prices and fees up.

Whether you have wanted to switch banks for a while or are just coming up with the idea, there is an easy way to do it. The process may take a little time, but be patient because it will be worth it in the end.

1. Pick out a new bank/credit union: The first step is finding a new place to put your money based on what factors are most important to you. There are several different financial institutions out there that offer a variety of different perks and services to meet their customer’s needs. Don’t forget to ask about ATM fees, if checking or online bill pay is free, and whatever other questions that may be important to you. Before choosing a bank, prioritize the needs you want met by your bank so you can find one that best fits.
2. Open your new account: Next step is actually walking in to the institution of your choosing and following the necessary steps to open your new account. Make sure you order checks as they are necessary for direct deposit and could come in handy. Also remember to get your debit card, set up online accounts, and gather any banking necessities that will make your experience easier. Save the information for the account manager that sets up your account so you have it on hand if questions or concerns arise.
3. Determine your bank’s fund-holding period: Security holds can be a hassle, especially if you weren’t aware that your bank was going to hold deposits for the sake of “security” until they decided you were a trustworthy customer. That’s why it’s crucial to find out if your new bank applies security holds for direct deposit, check deposits or even cash deposits. If they do, you don’t have to put all your money in at once. Simply deposit a couple hundred for them to hold as “security” and move the rest of your funds once their testing period is over.
4. Set up direct deposit: It may take a little time to switch over the direct deposit from the old bank to the new, so figure out when the actual switch will happen. In most cases, your HR department will require a check from the new institution to finalize direct deposit so order your checks early on because they may take a few weeks to get in.
5. Transfer your bill payments: For those who use bill pay to pay bills online, it’s important to transfer the accounts over to the new bank. This will have to be done manually and may take a little effort.
6. Close old account: Stop using your old debit card so all pending debits will clear. It may be useful to keep some funds in the old account for about a month in case you forgot about a check you wrote that hasn’t cleared yet. Once all written check have cleared and all pending payments are completed, then close down the old account.

If the bank asks why you decided to close your account with them, then offer some feedback. Don’t be afraid to tell them their fees are too high, the interest rates were too low or that you simply don’t appreciate their lack of customer service. Be polite and calm in your approach, but firm in your resolve to continue your banking elsewhere.

About the author:

Compass Technologies is the company behind Kwik-Loan consumer finance software and Kwik-Dealer indirect lending software.