If overdraft fees and ATM charges have become a routine part of your financial life or the place where you keep your cash just isn’t meeting your needs for other reasons, it might be time to look elsewhere. Take a step back and identify where things are falling apart. Your current institution may no longer be a fit. Here are seven tips to consider when you’re making a move:
1. Think like Peter Brady.
There was an episode from the classic 1970s show when all of the kids in the Brady family were recording a song and Peter Brady’s voice started to crack. The song they sang was called, “When it’s time to change you have to rearrange.” A fitting title and theme for this episode where his voice starts to change due to puberty. That same advice the song title suggests bodes well for where you put your money. You may have to see if you need to rearrange where you keep it. Look into sites where you can compare your options such as Bankrate.com or GoBankingRates.com.
2. Make a beeline to streamline.
When it comes to banking, financial writer Kate Horell of KateHorrell.com believes simplicity is key. She chooses convenience and streamlining over getting the absolute best deal. “One $30 overdraft fee because you got confused can easily wipe out the extra interest from keeping your savings in a higher interest account,” she says. She points out that keeping your money all in one well-chosen institution can be more valuable than chasing pennies here and there.
3. Know thyself.
Personal finance writer Mario Bonifacio of DebtBlag.com explains that one aspect of his banking habits that has saved him the most money over the years has been using USAA, which offered special benefits for veterans like himself. “The customer service reps really work with me to pick the account types that are best for me and both charge no fees for using other ATMs — and reimburse any fees charge,” he says.
4. Benefits can go the distance for you.
If you’re in the habit of traveling, online banks can offer benefits when it comes to travel. Harry Campbell of yourpfpro.com says because traveling is a priority for him, he always looks for how his bank can help him out while he’s on the road. When traveling abroad, he advises people to be aware of your bank’s international ATM fees. Unlike in the United States, a lot of foreign ATMs don’t charge fees to take your money out but your U.S. bank might.
5. Write a laundry list.
The busyness of life may keep you on a hamster wheel of apathy even when it comes to your money. Consider writing concrete examples about what you don’t like about where you currently bank. Be specific and succinct about why it’s not a fit. When you stop to analyze things a bit, you might discover certain aspects about your banking that could be the main cause of your financial woes. Write down a wish list as well to explain what you envision from your new institution. You’ll be equipped to ask the right questions when you shop around and be better able to weigh the pros and cons when deciding.
6. Ditch the sunk cost fallacy.
Just like ending a romantic relationship, leaving your bank doesn’t have to mean a dramatic breakup. Though it may not always be easy to switch when you have a deeply rooted relationship, it isn’t a reason to avoid doing so. Think of it as if you’re ripping off a Band-Aid. It may hurt a bit but you just have to endure the momentary discomfort and then it’s over. Remember loyalty to any relationship that has gone sour can continue to cost you money if you don’t do anything about it.
7. Give credit where credit is due.
When it comes to stashing cash, Jackie Lam of Cheapsters.org opts for a credit union all the way. “Banks are for-profit financial corporations, while credit unions are non-profit institutions offering discounts to their members.” She explains that you can work with a local credit union that limits membership to affinity groups like community residents or certain occupations, or you could join a national credit union offering membership to everyone.
If the financial institution you use is no longer meeting your needs, locating the best place to put your money might seem like an arduous task. It’s important to take your likes and dislikes into consideration before making a switch. Consider some of the tips listed above to point you in the right direction.
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7 Tips for Finding a New Bank originally appeared on usnews.com
