I still bank with the “big box banks.” I know there are better options out there and I do actually use some of them. To be honest, my bank accounts are like my post-it notes on my desk – all over the place; online, with a credit union, and with a “big box bank.”
Yet the reason I haven’t consolidated all of my accounts to one credit union or online account is that it just seems like a huge hassle to switch over all to one primary bank. Especially since I have a bunch of accounts that serve particular purposes. My online account at one time had the highest savings account rate (sad to say that’s no longer the case). My online credit union doesn’t charge ATM withdrawal fees and will reimburse me for the ATM fee, so if I need cash in a pinch, I can use that account to access my money. My “big box” bank is nation-wide and easy to access if I need a brick-and-mortar facility. However, with rewards programs vanishing and fees looming around the corner, my “big box bank” is starting to look less and less appealing.
I’m not the only one that thinks this, according to Century Link Business 38% of Americans have switched banks and others are thinking about it. Take a look at this infographic below:
13 Comments
I did a little spring cleaning on my finances last year and finally consolidated all my bank accounts. Part of it was driven by a refinancing of my mortgage from a local bank to a local credit union, but much of it was also my feeling overwhelmed by all those “post-it-note” bank accounts laying around. I had 4 different accounts at 3 different banks and the tracking of it all became too much to bear. I have a much simpler financial life now, and I plan on keeping it that way. 🙂
@Joe – I’m beginning to think that my banking is out of control and am seriously thinking of consolidating to a simpler banking method, i.e. online credit union. I just haven’t taken the plunge yet.
I’ve switched a number of banks and surprisingly it isn’t that hard! You may have to run to the fax machine just once, but that’s about it!
@MoneyCone – You make it sound seamless. My biggest problem is that I have something like 6 accounts and I’m not really sure where I’d want to bank if I narrowed it down to two.
I switched from the hell that is Bank of America to a little bank when we moved halfway across the country. I’m friends with my banker and have lunch with him every Friday (totally makes me seem like a shooter…but we’re just two guys who are about the same age and have the same interests). I have no fees, even if I use a competitors ATM.
I wouldn’t recommend changing all at once, though. Just pick one that isn’t working and start there. The rest will follow soon enough.
BTW….I’m diggin’ this font in the comment box. Great call.
@Average Joe – That’s good advice; to start with one account and switch it over. I’m still mulling it over, but someday I may switch.
Part of it was driven by a refinancing of my mortgage from a local bank to a local credit union. Great article, I’ll pin these to my friends.
@Carmen – Thanks for your comment!
I do have a bank account from a big, fee charging bank but that’s just because I have banked with them since I was 9 and I have a free account with them for as long as I’m a student. As soon as I have to start paying fees again, I’m out of there!
@Daisy – I have to do a bunch of things to make sure I don’t get charged fees, including opening additional accounts and auto-debiting amounts. I can keep up with all of it, but sometimes it just seems like it’s a lot of work to avoid fees!
It seems that there are a lot of similarity between our banking habits. I also find it hard to consolidate all of my finances in one bank.
I’ve been meaning to change to one bank but it’s such a hassle I haven’t done it yet. I still plan on doing it though…once I get up the motivation.
@Young Professional Finances – That’s my delay; the work part of it!