When was the last time you thought about changing up your banking relationship? If you’re like most people, the idea likely hasn’t crossed your mind. Unless you’ve had a terrible customer service experience or banking disaster, sticking with what’s familiar seems like the easy choice.

However, there may be more benefits to switching banks than you might think. Today’s banking options offer more than just brick-and-mortar convenience. The advent of digital technology, mobile payments, and more makes researching banking options a great use of your time. If you make a switch, you could save money, time, and improve your overall financial outlook.

1. You’ll Identify Costs to Cut

If your financial management style has been on autopilot, the process of switching banks forces a reality check. When you review your account for incoming direct deposits and outgoing bill-pay, you’ll be face-to-face with your debit card transactions. If you’ve been carelessly swiping, it’ll show up on your transaction download and account statements. 

While you’re there, take a look at your automatic payments and subscriptions. Creeping price increases are commonplace, especially among entertainment and digital providers. Conduct a careful review to ensure that any payment arrangements are worth transferring to your new bank. Frequently, this type of thorough review can unearth some unhealthy financial management practices. If this is the case for you, use your banking switch to clean up your habits.

If you decide that you don’t need four streaming platforms and a satellite service, cut ties immediately. Reach out to the providers directly, as shutting down your bank access won’t let you out of a contract agreement. If canceling isn’t an option, ask your provider to work with you on pricing. Either way, you’ll trim costs as you switch banks.

2. You Could Get Your Money Faster

Pending payments can be a drag, and so can pending deposits. However, some financial institutions extend a well-appreciated convenience — early access to incoming cash. Generally associated with digital-first banks, many customers enjoy direct deposits up to two days sooner than payday. Faster access to an available balance can provide peace of mind and other benefits. You can make payments earlier, which can help manage cash flow and even reduce the total interest paid on loans.

If quicker access to your hard-earned cash sounds attractive, switching to an institution that provides this option is easy. First, set up your new account and get the routing and checking account numbers. Then, work with your employer to set up your new direct deposit account. Some payroll platforms will need numbers only, while some may need additional information, so consult with human resources first.

Once your information is submitted, wait for your first direct deposit to arrive. Once you’ve confirmed that everything is set, then it’s safe to start the process of closing your old accounts. Make sure to log any incoming payments or outgoing bills before you shut them down. A missed payment can quickly wreck your credit, so update your obligations. Allow for at least one successful payment cycle to complete so you don’t unintentionally introduce a new problem.

3. Savings Habits Could Be Easier to Stick To

If money seems to slip through your fingers faster than a fist full of Jell-O, you’re not alone. According to Bankrate, 56% of Americans would struggle to come up with $1,000 to cover an emergency expense. But what if there were a way to effectively trick yourself into saving with little pain or extra effort? Thankfully, this concept is within reach when you do business with a financial institution with modern options.

Several banks offer customers the option to round up the change on debit card transactions. This simple round-up goes directly into your connected savings account. Mimicking the concept of saving the change in a cash transaction, the effortless savings can really add up. Plus, maintaining even-numbered transactions can make your monthly accounting that much easier. You’ll get double the benefit from your new bank without the need to execute transfers each payday.

While round-up transactions can boost your savings, they do require a swipe in order to save. Furthermore, the amounts saved, while helpful in the aggregate, aren’t themselves very large. That’s why you should also set up automatic monthly transfers of a specified amount to your savings account. To further expand your savings efforts, establish multiple savings accounts for specific goals. Before long, you’ll have cash stashed for emergencies and vacations, which can reduce stress and improve your financial standing.

Upgrade Your Bank, Upgrade Your Life

You may not have realized how much your antiquated banking relationship was holding you back. However, when you upgrade your financial institution, you just may be upgrading your life. By saving money, having better access to data, and enjoying greater flexibility, you’ll enter a new world of money management.

Research the options available to you and choose the bank whose products and services offer the right fit. The initial administrative tasks associated with changing direct deposit information and bill pay are a small ask considering the benefits. Before long, money management will feel effortless, all thanks to making the switch to a bank that meets your needs.

Previous Post Next Post