Millennials are demanding more from their financial institutions, and studies prove it. In a recent survey by BusinessWire, 36% of respondents said they will likely switch primary financial institutions in the next 12 months. On top of that, 55.5% of millennials that make over $75,000 said they are likely or very likely to switch primary financial institutions.
If you find yourself in a similar boat, frustrated with poor customer service or hidden fees, switching might seem like a daunting task. But it doesn’t have to be! We’re here to help make this process as easy as possible for you by laying out everything you need to know when switching financial institutions — from finding the right account to understanding all six steps in the process.
1. Pick a New Financial Institution
Choosing the right financial institution is an important first step to opening a new account. However, there are quite a few things to consider before making the leap. When deciding between local financial institutions, reflect on the following:
- Fees — Check for monthly maintenance fees, ATM fees, overdraft fees, and any other fees associated with the new account.
- Convenience — Consider the institution’s location, online and mobile financial options, and the availability of ATMs.
- Interest rates — Compare the interest rates on savings and checking accounts, as well as other financial products such as loans and credit cards.
- Customer service — Research the institution’s customer service options, such as phone and online support, to ensure they are readily available when needed.
- Security — Make sure the new financial institution has strong security measures in place to protect your personal and financial information.
- Products and services — Consider the various financial products and services offered, such as mortgages, investments, and insurance.
2. Identify Automatic Payments
Before switching financial institutions, identify any automatic payments that you currently have set up with your old account. This also includes any transactions you have set up with your debit card.
Some of the most common types of automatic payments people use include:
- Utility bills
- Credit card bills
- Rent or mortgage payments
- Subscription services
- Insurance premiums
- Cell phone bills
- Student loans
If you don't take steps to transfer or cancel these payments, you may end up being charged fees or incurring other penalties. To avoid this, track down your automatic payments before closing your old account.
3. Open Your New Account
Opening a new checking or savings account is a simple process that can be completed in just a few minutes. All you need is a valid ID and some initial money to deposit. But before you open a new account, it's important to research the account type that best suits your needs.
For example, City & County Credit Union offers three different checking solutions designed to make your life easier and put you in control of your finances: 
- iSelect Checking — This customizable checking account offers City & County members a wide range of features.
- Advantage Checking — This checking account lets you earn a competitively tiered interest rate. The higher your balance, the more you earn.
- AdvantagePlus Checking — This top-of-the-line checking account offers the most rewards, discounts, and benefits.
No matter your needs, there is a checking account for you. Do diligent research to uncover the checking account that empowers you to do the most with your money.
4. Update Your Direct Deposit Information
After opening a new account, your next step should be to update your direct deposit information through your employer’s HR department. If you don’t, your employer could continue to deposit your paycheck into your old account. This can inevitably lead to complications and delays in receiving your well-deserved funds.
In addition, any automatic payments set to come out of your paycheck (like health insurance or a 401k) could be delayed or missed if your direct deposit information isn’t updated.
In order to save yourself a headache down the road, update your direct deposit information with HR as soon as possible.
5. Update Any Automatic Payments
You have already identified any automatic payments in step two. Now that you have opened the new account, it’s time to transfer the payments over!
It can be a costly mistake to forget to update automatic payments after switching accounts. To avoid late fees or pricy penalties, review your new statement and double-check that all of your automatic payments have been processed correctly.
6. Close Your Old Account
Once you have completed all five steps above, all that’s left to do is close your old account. This is a relatively simple process that you can complete in mere minutes.
First, you need to empty the account of all remaining funds. Once the account is empty, you need to notify the financial institution that you wish to close the account. Although the steps vary by each financial institution, you can close most accounts through a form or signed letter. You may need to provide a forwarding address so they can send you any final statements or documents.
Once the financial institution has closed your account, you will receive a confirmation letter. Hold onto that letter for your future records!
Do More With Your Money
At City & County Credit Union, we empower our members to do more with their money. Our extensive range of services and competitive rates make us a top choice for anyone on the hunt for a new financial institution.
Now that you know the six simple steps to switch accounts, take advantage of our industry-leading rates and award-winning customer service by talking to a team member today!
