People tell me it's too much trouble to move their money to another financial institution. They have electronic banking, direct deposit, automatic bill-pay, debit cards and automatic payments set up. And that's exactly what the banks are counting on -- the hassle factor. So here's how to do it without too much disruption.
OPEN IT!Your first step is to open a new account at a local credit union or community bank. You don't generally have to make a big initial deposit to get started. Be sure to order a debit card and checks when you set up the account. Now you'll have an account number to work with as you make the shift.
Stop using the old checks and debit card as soon as the ones for your new account arrive. Make sure to maintain enough money in your old account until all outstanding checks and debit card transactions clear. Don’t forget to plan for any automatic payments/deposits that may come through before your changes go into effect.
MOVE IT!Make a list of everything that needs to be changed and check them off one by one as you move them to the new account. Don't forget things like Paypal accounts, quarterly or semi-annual payments, and annual subscriptions that may surface later. A review of your past few bank statements should give you enough information to create your list. Many, if not all, changes can be made online or by fax, depending on the institution.
If you have direct deposit for payroll, talk to your Human Resources department about changing that to the new account. Generally this is as difficult as filling out a form then waiting for the deposits to start going into the new account. You can find many of the authorization forms you need online, often on the financial institution's web site.
To change Social Security deposits, you need to
contact your local office. Be aware that it can take 30-60 days for changes to take effect.
CLOSE IT!Once you're certain that all the checks and payments have cleared the old account, that any direct deposits are now going into the new account, and that any automatic payments are now coming from the new account -- once you're sure the old checking account isn't used or needed anymore -- CLOSE IT! Withdraw whatever money may be remaining and shut it down. Don't hesitate to
politely but firmly let them know exactly why you are closing your account, but remember that most of the people who work at/for banks are just doing their jobs and are part of the 99%.
PARTY!Don't forget to shred any unused checks and debit cards for the old account. You won't be needing them anymore. You might take this opportunity to throw a Shredding Party and invite all your friends to join you in celebrating your money's big move from Wall Street back to Main Street.
It does take some time and patience, but moving your money is well worth the effort. When you bank with a local credit union or community bank, your money is reinvested back into the community. And your deposits are still insured up to $250,000 per institution through the FDIC or NCUA.
Remember that a lot of people doing small things can have a big impact!For help finding a local credit union to join, start with this
Credit Union Locator.
To find a community bank in your area, visit the
Move Your Money Project.
Nearly every day I hear from someone who is in pain and suffering in a state or country that does not allow the legal use of medical marijuana. I hear about their struggles with the pills they've been prescribed that knock them out and make them unable to function. They tell me about their frustrations with the health care industry and the lack of treatment options for their condition. And they confess their fears about the possible legal repercussions if they are caught treating their illness with this miraculous herb, often the only viable treatment option remaining.
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