Should i change banks

Your bank is shady. Since the financial crisis, trust in banks have fallen to extreme lows. You might be more or less satisfied with your individual experience with a bank, but find out that it has done or continues to do something unethical.

One of the biggest examples in recent memory is the Wells Fargo scandal; for 14 years, the bank had been instructing its employees to commit mass fraud by opening multiple accounts for customers without their consent. Former employees have said that they tried to target the most vulnerable customers — like the elderly and non-English speakers. More recently, in light of the George Floyd protests, Bank of America has come under criticism for its donations to police foundations.

JPMorgan Chase, for example, was recently found to be the biggest financer of fossil fuel industries in the world, followed by Wells Fargo, Citibank and Bank of America.

Your money will be used to help your local community rather than a corporate interest. Welcome to Money Diaries where we are tackling the ever-present taboo that is money. For example, you can take advantage of a high annual percentage yield with an online savings account while keeping a checking account open at a traditional bank that offers in-person customer service when you need it. Keep your number of accounts manageable to avoid accidental overdraws.

If keeping your accounts under one roof is important to you, check out our list of best banks for checking and savings accounts.

Most banks make it easy to open a checking or savings account online or in person. Some banks do a soft or hard credit pull, but only the hard pull results in a usually short-lived dip in your credit score.

This credit inquiry might occur if you apply for an overdraft protection program or line of credit when you open a checking account. Make sure you meet the minimum deposit requirement.

Make sure you have enough money before you open an account. For a seamless transition to your new bank account, pull up a year's worth of transaction history to note any of the following:. Automatic bill payments and subscriptions monthly or annual. Also note any bank services you currently use, which may include:. See our list of best checking accounts. The same logic applies here. Open the new account before closing your old one and switch in stages.

Keep some money in your old account. Change any direct deposits. Update your financial information at work so that your paycheck is sent to your new bank account.

Reschedule automatic payments. Schedule future bill payments from your new account once the first direct deposit goes through. Check off the rest of your list. Best Of Banking.

Banking Reviews. Banking More from. Napoletano Contributor. By Ben Gran Contributor. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication.

Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. Napoletano is a former registered financial advisor and award-winning author and journalist. The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site.

This compensation comes from two main sources. First , we provide paid placements to advertisers to present their offers.

Otherwise, you could experience a delay in receiving funds or a company might charge you a late fee because you didn't pay your bill on time. Pull your bank account statements from the past couple of months, or past year if you have annual subscriptions, and make a note of every repeating bill or deposit. Contact all companies related to these and update your information so that your money is deposited into and withdrawn from your new account.

If you close your old bank account while you still have withdrawals pending, your payments might not go through and you may get charged extra fees and penalties. Before you close your old bank accounts for good, make sure that you've switched over all your automatic deposits and withdrawals and that there are no more pending transactions. Switching banks is a process, and getting it right takes a little research. But it's important that you do. This is the organization you're trusting with your money, so you don't want to choose the wrong company or rush things and encounter hiccups along the way.

By staying mindful of the seven things listed above, you can ensure that the transition goes smoothly. Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest.

The Ascent's picks of the best online savings accounts can earn you more than 8x the national average savings account rate. On American Express' Secure Website. Best For: No monthly maintenance fee. Kailey is an industry specialist covering bank accounts, credit cards, and all things personal finance. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. Advertiser Disclosure We do receive compensation from some partners whose offers appear on this page.

We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. Search Icon Click here to search Search For. Credit Cards Top Picks. Banks Top Picks. Looking for a place to park your cash?