Thinking of switching financial institutions?

Are you feeling dissatisfied with your current financial institution and considering moving your money elsewhere? If so, consider these factors before making your next move.

Your financial situation

Before making any changes, assess your finances. If you have substantial assets, you’ll be in a better position to negotiate attractive deals with a new financial institution. It’s also crucial not to overlook the importance of your credit rating. If your credit score has declined in the past few years, it could impact the benefits you’re eligible for with a new institution.

The complexity of the process

The idea of switching to a new bank may be appealing for the prospect of better interest rates, waived transaction fees and enticing rewards programs. However, changing over isn’t a quick and easy task. You’ll have to notify your employer, the government, your service providers, creditors and anyone else who automatically deposits or withdraws money from your account.

Potential fees

Some banks charge fees and withhold taxes when they release funds to be transferred. The amounts vary based on the nature of your accounts (whether they’re investments or savings accounts, for example). Keep a few hundred dollars as a buffer in each of your accounts so you have enough to cover any pre-authorized payments you may have overlooked. Defaulting on payments could result in penalties, so it’s important to stay on top of your financial commitments.

Once your move is complete, be sure to close your old accounts. Many institutions charge fees for inactive accounts, so it’s best to tie up loose ends.

Alternative solutions

If switching financial institutions seems too tedious, there are other ways to improve your satisfaction with your financial services. For example, you can speak up about your dissatisfaction with your current institution. By expressing your willingness to switch institutions, you could negotiate better terms or a more attractive transaction package. Your feedback can make a real difference.

Tip: Before starting a conversation with your financial institution, review the fees associated with each of your accounts. These fees could be silently eating away at your money, adding up to hundreds of dollars a year. Don’t be afraid to negotiate!

Consider doing business with more than one institution. You could keep your current accounts with one and let another handle your investments. This way, you might snag advantageous rates without having to completely switch everything around.

Do you need help finding a new institution or renegotiating with your current one? Contact a financial expert in your area.