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How To Break Up With Your Bank

To switch or not to switch… that is the question! Switching banks has never been described as an easy or fun task. But what if I could help make the process a bit easier for you? I can’t promise it will be fun, but if you’re already feeling that itch to switch – it will be worth it in the long run.


Got the itch to switch?

So what would make someone get the itch to switch? There are many reasons why someone would want to make a break from their current bank. You could be going through a big life change that challenges you to review your relationship with your current bank. For example, moving to another city for that new job opportunity might make you switch if  you want to do your banking close to home. If you’re recently married like me, you and your hubby would have gone through a debate to decide whose bank gets the honour of opening your joint account.  You could also be looking for better rates because who doesn’t love a good deal? Honestly, as much as a good deal gets me going, the real value is finding someone that treats you like a person and not an account number. Whatever the reason may be, if you’re not happy then it is time to make a change!

How do you do that? I don’t know about you but I like a good checklist so let’s break it down step by step.

Step 1: Browse the options

You wouldn’t buy a book without reading the back and you wouldn’t buy a car off the lot without taking it for a test drive. Your bank shouldn’t be any different. Browse your options and ask yourself want do you want from your financial institution. Things to consider:

  • Would you rather a bank or a credit union? Don’t think there is much of a difference? There is and we’ve broken it down for you in a previous MONEYTALK blog.
  • What is your banking style? In a branch, online, or maybe a mixture of both? Check out what each financial institution specializes in.
  • Is it important that your financial institution is involved and supports your community in which you work, live and play? Take a look at what/how much they support.
  • Most importantly, ask what’s in it for you!

Evaluate your options and take a couple of your top draft picks out for a test drive. I recommend meeting with a representative from the option you are considering to see if they are a right fit for you and can provide what you are missing from your relationship with your current financial institution.

Step 2: Open a new account

You’ve done your research, played the field and now you’re ready to commit… what’s next? Jump in with both feet and open a new account. Most financial institutions offer a variety of ways to open up an account. If you want the human interaction, visit your local branch in your community or if you want the ease and convenience from your couch – there are typically online options (if there isn’t and that is something you value most – return to Step 1).

Pro Tip: Once the account is opened – make a small deposit into your new account to make sure everything is running smoothly.

Step 3: Identify monthly expenses and set up automatic payments

Make a list of your automatic payments that come out of your account on a bi-weekly, monthly and yearly basis. You’ll want to set these up on your new account. Some common automatic transactions to think about:

  • Your hard earned dollars: Direct deposits
  • The roof over your head: Mortgage payments
  • Subscription to chill: Netflix account
  • One more song: Apple Music/Spotify Premium
  • Connection to the world: Cellphone payments
  • License to Leg Day: Gym Membership fees 

Step 4: Transfer majority of your money

You’ve set up your automatic payments and now you have to make sure you have money in there to pay them. Time to transfer the majority of your money into your new account. Key word here is “majority” of your money.

Pro Tip: It’s a good idea to keep some of your money in your old account just in case that pesky internet bill slipped through the cracks.

Having said that, keep your old account open for at least a month to ensure you haven’t missed any of those automatic transactions. When all is clear, transfer the rest of your money into your new account.

Step 5: Closing time

Last, but definitely not least, is to close your account, I repeat CLOSE your account! Just because the balance is zero doesn’t mean it is closed and your bank will continue charging you fees until it is officially closed. Avoid having a “fee”k out when you realize the account was reopened and you now owe your ex-bank money. Contact your bank to ask how to officially close your account and get the closure you need.

 

If you’re feeling that itch to switch don’t be afraid to make a change. At the end of the day, your finances are one of the most important aspects in your life and you should feel safe, valued and confident with your financial institution.

Have any tips for the switch? Let’s hear ’em! Share by using the comment section below to save any headaches for those looking to break up with their bank.

 

building with credit union logo

Why I made the switch to a credit union

Not happy with your bank, but scared to make the switch? Read the experiences of one of our members who recently switched financial institutions after realizing her bank was not helping her to achieve her financial goals.


My financial institution was determined at a young age and like most, who I banked with was the same as my parents. As I got older, my banking needs changed yet I continued to bank with the same financial institution. Was my inherited bank actually doing what I needed it to though?

I started to realize how important this decision was. As I’m trusting an institution with my hard earned money, it shouldn’t be about staying with the bank that was chosen for me but instead being sure that who I was banking with was an institution that met my financial needs. That’s when I began to understand what type of bank I needed for me, and if I needed to make a change.

What I took into consideration

  • Is my bank listening to me and addressing the financial needs that benefit me – not my bank?
  • What are my financial goals and how is my bank helping me to achieve these?
  • Does my banks’ values align with my personal values?
  • How is my bank contributing to my local community?

I soon came to realize that I didn’t have a relationship with my bank. My account was very transactional but the bank never made me feel like I was anything but a number. I did some research about other financial institutions and through this research, I discovered a few key differences between credit unions and banks.

Here’s what I learned.

  • Credit unions are member-owned while banks are owned by its shareholders. What this means is you have a say on how your credit union operates while banks answer to its shareholders.
  • Credit union profits go back to their members such as offering No-Fee Chequing Accounts.  They also invest their profits back into the local community. Bank profits are paid to their shareholders and your local community rarely benefits.
  • Credit unions are driven by their members. They take the time to listen, ask questions and help you achieve your financial goals. You are their number one priority.
  • Credit unions have a one team model approach and are all part of the Ding Free network, allowing members to access a number of ATMs across Canada for free. With banks, you can only use their products and services and you will be charged for using other banks’ resources.

Overall, the biggest thing I learned was that credit unions and banks offer similar products and services. The way they operate though and treat their members are different. To learn more about the differences between credit unions and banks, I recommend checking out Credit unions vs banks: What’s the difference?

After considering what my current bank offers and evaluating the difference between credit unions and banks, I wondered why I hadn’t started looking into this earlier. Why hadn’t I made the switch – by switching to a credit union, I’d be able to save $185 each year just in bank fee savings – so what was holding me back?

My fears

  • Time! I didn’t want to spend a lot of time having to switch all my payments over or learning a new bank’s products such as mobile and online banking.
  • Was it really worth the effort to make the switch? How much work was involved?
  • What if I missed payments due to the switch resulting in added interest or canceled services.
  • Would I have to give up my credit card? I liked the credit card that I had at my other bank and didn’t want to cancel it.

I started to realize that most of my “fears” were excuses and if I really wanted to take control of my finances I needed to take the time to invest in myself. Ultimately, I liked how a credit union was local and I felt that their values aligned to my personal values. I decided to reach out to Conexus Credit Union, and after speaking with a financial advisor I soon realized they really did care about my overall financial well-being and knew that it was time to make the break up with my current bank and make the switch.

Making the switch

Switching over to Conexus was quite easy, especially with their tool called Click Switch. It allowed me to switch over all of my payments within a few minutes and just the click of a few buttons. My fear of time quickly disappeared.

Tips

If you’re like me and some of your fears include missing a payment due to switching or losing a credit card you love, consider some of the tips below before making the switch.

  • Do not close your current bank account until all of your payments are switched over. Keep the account open for a few months to ensure you haven’t missed anything.
  • Leave a small amount of money in your old account to cover any payments you may have missed switching over to avoid non-sufficient funds.
  • You don’t have to switch everything over at once. It’s perfectly fine to keep your loans or mortgages with your old bank until they expire or are paid off.
  • You can keep your current credit card if you’re not wanting to depart from it quite yet. Check to see if you can link your credit card from another bank to your new credit union account. This will allow you to still view your credit card balance in your new account and help you manage your finances in one spot.
  • If you are looking at getting a new loan to pay out a previous loan at your bank, make sure you get all of your approvals and payout amounts first before closing out your account or changing your direct deposit.

In the end, I made the decision to move to a credit union because I believed in their values as an organization. I felt it was easier to have an open and trusting conversation and it saved me money on bank fees. Ultimately, when determining your financial institution consider how your financial institution can impact your overall financial well-being. For me, choosing a credit union was the perfect fit.

Credit unions vs banks: What’s the difference?

When it comes to managing your finances and choosing where to bank, there are many things to consider including whether you should choose a credit union or a bank. 


Credit unions and banks are pretty similar in the types of products and services they offer. However, there are many differences in how they operate. Whether you are looking for a new financial institution or just starting out, here are a few of the differences to help you determine which is a perfect fit for you.

Credit unions are part of the local community. They not only live, work and play within the communities they serve, but also give back to their local communities to help improve the financial well-being of their members. When it comes to managing your finances, you want to ensure the financial institution you choose has your, and your communities, best interest at heart,

At the end of the day, your financial institution should have you as their number one priority. Would you have it any other way?