Banking

How To Open A New Bank Account

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 2 minute read

Breaking up with your former bank is never easy. You’ll need to update your bill-paying information, stop any recurring debits or credits, and transfer your funds to the new bank. 

Seems like a lot of extra work and wasted time. While it would be ideal to never have to switch banks, it is sometimes necessary to do so. If you are debating whether or not it is time to switch banks, you should read on. Here are four red flags that indicate it may be time to look for a new bank:

Inadequate Customer Service

Do you find it challenging to speak with a live bank representative over the phone? When I did most of my banking with Bank of America, I seldom got through to a real person. Needing an immediate answer to a query is made more difficult by automated customer service aid.

Once upon a time, dialing “0” connected you immediately to a customer support representative. Those strategies are becoming less effective as companies catch on to the pattern. When you have no way of getting in touch with a real person at your bank, it’s time to go elsewhere. If you ever have a serious problem with your bank, you probably don’t want to be put on hold for an indefinite amount of time.

Strict Restrictions

Are you finding that over time, bank fees are gradually draining the funds from your checking account? Some banks are punishing their consumers regardless of how often they use their accounts by charging inactivity fees, account maintenance costs, and customer service fees whenever the user interacts with a teller. You should shop elsewhere if you are getting charged for every single purchase you make.

There is no leniency

A customer’s loyalty to a bank should be rewarded in some way. If you’ve never gone overdrawn or been late on a payment before, the bank should be more understanding. When a bank says they can’t undo a charge, they’re pulling one of the largest cons in the industry. 

Refuse to accept this! If they so choose, banks may waive service charges. If the bank truly cares about keeping your business, they won’t hit you with a slew of fees for a single infraction.

Overdraft Charges

Do you continue to incur astronomical overdraft fees from your bank? Financial institutions were tasked with ending their consumers’ experiences of being overcharged. A small minority of financial institutions still prioritize larger transactions over smaller ones, only so they may collect more overdraft fees from you.

Some financial institutions continue to break the law by doing this. Relying on an unreliable bank’s overdraft service? Move on to another financial institution. Never go over your bank’s overdraft limit.

Bottom Line

Local banks, credit unions, and a few internet banks, including Ally Bank and ING Direct, provide the lowest transaction prices and finest customer service. Why do we continue to use commercial banks when their size prevents them from providing enough personal care to their customers?

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