smashweights Posted July 25, 2012 Report Share Posted July 25, 2012 http://money.cnn.com/2012/07/24/pf/switching-banks/index.htm?hpt=hp_t3Why is switching so hard? About 43% of thesurvey respondents said that rising fees for routine services -- which may include monthly maintenance fees for simply having a checking account, extra charges for paper statements, ATM fees or wire transfer fees -- led them to consider switching banks. Meanwhile, 38% said another bank offered them better terms and 26% cited bad customer service. But dumping your bank isn't as easy as just closing one account and opening another. Once you open a new account, you'll need to transfer any automatic payments you have set up, like direct deposits from your employer -- or from the government if you're on fixed income -- and any recurring payments you make from your account to pay bills or fund another account. This process alone can take up to six weeks. ...About 63% of those who didn't end up switching banks said it was too much trouble to transfer all their automatic payments and deposits. Another 37% said the entire process of moving their money would take "too much time and effort to complete,"So lots of people want to switch from banks with shitty policies but chose instead to get fee-raped rather than fill out a few forms to swap their cable auto-pay and work direct deposit? God save us... Quote Link to comment Share on other sites More sharing options...
magley64 Posted July 25, 2012 Report Share Posted July 25, 2012 I've only kept ties with first merit because they hold my auto loan. I've considered refi with my current bank, but it wouldn't make good financial sense.i did switch over the rest of my accounts though, i'm not shy. Quote Link to comment Share on other sites More sharing options...
Tpoppa Posted July 25, 2012 Report Share Posted July 25, 2012 You don't think that banks, or gyms, or any number of businesses purposely make it difficult to leave??? They want the forms to be too much of a pita. Quote Link to comment Share on other sites More sharing options...
ScubaCinci Posted July 25, 2012 Report Share Posted July 25, 2012 Many banks also require a minimum deposit to open an account, some as much as $500. If you are transitioning from an account with auto-payments and stuff, obviously some money must be left behind until that is cleaned up. This would probably be a hardship for some.It wasn't long ago that a study came out saying something like 80% of people couldn't come up with $1k in cash (this still amazes me) so I'm guessing most people couldn't even afford to switch.I switched from Huntington to 5/3 almost 2 years ago and it didn't take six weeks to get my shit in order...that seems excessive to me. Quote Link to comment Share on other sites More sharing options...
TheBrown57 Posted July 25, 2012 Report Share Posted July 25, 2012 My GF is switching from 5/3 today due to there new fee's Quote Link to comment Share on other sites More sharing options...
smashweights Posted July 25, 2012 Author Report Share Posted July 25, 2012 (edited) It wasn't long ago that a study came out saying something like 80% of people couldn't come up with $1k in cash (this still amazes me) so I'm guessing most people couldn't even afford to switch.That's kind of the point I was hinting towards: poor financial decisions are rampant in this country because people are too lazy to do things that benefit themselves OR to do the research necessary beforehand to make sound financial plans.And that stat blows me away. 80% of people can't come up with $1k in cash? My wife and I are right at the median household income for the US and if we needed to could come up with a hell of a lot more than that and we're only 2 years into regular, non-college kid paychecks. Edited July 25, 2012 by smashweights Quote Link to comment Share on other sites More sharing options...
e-flores Posted July 25, 2012 Report Share Posted July 25, 2012 I'll be honest and say that I've switched banks 3 times in the last 5-6 years because of high fees, dumb fees, and poor customer service. But on the other hand I have very few automatic payments and very few forms to fill out after I switch banks. If I had a ton of loans and bills on auto pay I would think I would have a harder time considering the switch of a banking company. And I think that banks realize that the more "perks" they offer you the more loyal you're going to be as a costumer. Not only because the "perks" are nice to have but more so because they know once they tangle you up with paperwork they can slouch with customer service a little more because they know you're more apt to stay. Quote Link to comment Share on other sites More sharing options...
ScubaCinci Posted July 25, 2012 Report Share Posted July 25, 2012 That's kind of the point I was hinting towards: poor financial decisions are rampant in this country because people are too lazy to do things that benefit themselves OR to do the research necessary beforehand to make sound financial plans.And that stat blows me away. 80% of people can't come up with $1k in cash? My wife and I are right at the median household income for the US and if we needed to could come up with a hell of a lot more than that and we're only 2 years into regular, non-college kid paychecks.I looked it up...I was off a bit - 64%. 36% would draw money from savings (i.e.- not add to debt). However, of the 64%:Many respondents, 17%, said they would borrow money from friends or family. Another 17% said they would neglect other financial obligations -- like a credit card bill or mortgage payment -- in order to free up some funds.Alternatively, 12% of the respondents said they would have to sell or pawn some assets to come up with $1,000 and 9% said they would need to take out a loan. Another 9% said they would get a cash advance from a credit card, according to the NFCC.FUBARhttp://money.cnn.com/2011/08/10/pf/emergency_fund/index.htmhttp://www.huffingtonpost.com/2011/08/11/financial-insecurity-americans-payment_n_924569.htmlIf you don't have at least 3 months household salary in liquid assets, you are one lost job away from bankruptcy. Quote Link to comment Share on other sites More sharing options...
smashweights Posted July 25, 2012 Author Report Share Posted July 25, 2012 I looked it up...I was off a bit - 64%. 36% would draw money from savings (i.e.- not add to debt). However, of the 64%:FUBARhttp://money.cnn.com/2011/08/10/pf/emergency_fund/index.htmhttp://www.huffingtonpost.com/2011/08/11/financial-insecurity-americans-payment_n_924569.htmlIf you don't have at least 3 months household salary in liquid assets, you are one lost job away from bankruptcy.And even that depends on how in demand your job skills are. Could need 6mo to a year. But why save for a job loss when you can just rely on the gov't and joe public to pay for your lack of preparation? Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 And even that depends on how in demand your job skills are. Could need 6mo to a year. But why save for a job loss when you can just rely on the gov't and joe public to pay for your lack of preparation?Because that's what unemployment benefits are there for. I wholeheartedly agree with ScubaCinci, and over the last 2 years I've been building up a emergency fund that I'm happy to say will fund my expenses for about 6 months. However, if I'm laid off or otherwise eligible for unemployment benefits, you bet your ass I'm going to take them, on top of what I already have stashed away. Sure, I didn't factor them in my planning since it would be silly to make that kind of a assumption, but I'd take them and so would you. I don't usually speak in absolutes, but anyone who says differently is flat-out lying. Quote Link to comment Share on other sites More sharing options...
magley64 Posted July 25, 2012 Report Share Posted July 25, 2012 Sure, I didn't factor them in my planning since it would be silly to make that kind of a assumption, but I'd take them and so would you. I don't usually speak in absolutes, but anyone who says differently is flat-out lying.I wonder if this is why Mitt Romney won't release his tax returns... Maybe he got "laid off" *wink wink* from Bain Capital? Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 (edited) Getting back to the bank switching thing, I'm willing to bet that I've made more than one payroll administrator grumble my name when I email them asking for my direct deposit to be tweaked. Moving your DD isn't that big of a deal, and if you have half a functioning brain to get all the pertinent details from your existing billpay accounts and move them to the new bank (and not be a complete idiot and close the old account before you open the new), then I would hope you'd have already done it by now.It's a fairly simple process:Go to new bank, open new checking accountRegister for online account access, verify you have access to all newly opened accountsLog onto old bank, establish transfer link between new and old account (will take 2 days)While you're waiting for the transfer link to be done, start copying online billpay info from old to new bankTransfer link is done, transfer enough money to put a dollar towards every bill you've set up on new bank to verify you didn't screw anything upBy this point, you should have the ATM/debit card for new bank, start carrying this around along with old bank debit card. If you don't, do not proceed further until you do.Change direct deposit to new bankFirst direct deposit posts to new bank, figure out how much you need to leave in old bank to cover outstanding bills and outstanding transactions. Leave $100 (or whatever you feel comfortable with as a buffer in case you forgot anything) as a balance on the old account, transfer rest to new bankUse new bank exclusivelyAfter a few weeks, or whenever you feel comfortable that anything that was outstanding would post to old bank, walk into your local branch, tell them to go fuck themselves, collect your leftover balance (if any) and walk out like a boss.Yeah, it seems like a lot, but it's very straightforward, simple to implement, and works for online-only or brick-and-mortar banks. Edited July 25, 2012 by Cheech 2 Quote Link to comment Share on other sites More sharing options...
magley64 Posted July 25, 2012 Report Share Posted July 25, 2012 good guide cheech... Quote Link to comment Share on other sites More sharing options...
ScubaCinci Posted July 25, 2012 Report Share Posted July 25, 2012 And even that depends on how in demand your job skills are. Could need 6mo to a year.Yep, notice I said "at least". Six months to a year's worth is a better target. Happily, I'm beyond that but then again, my wife is a financial advisor/planner so I don't have much choice Quote Link to comment Share on other sites More sharing options...
ScubaCinci Posted July 25, 2012 Report Share Posted July 25, 2012 good guide cheech...+1 rep Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 Thanks for the love. I moved the direct deposit change and the new ATM card around, less risky if you already have the physical card in your hand and then change direct deposit than the other way around and leave yourself open for the (unlikely, but possible) possibility that the DD will arrive in the new account before you get your hands on a ATM card. Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 And since we're going all out on personal finance, while you're opening up new accounts, find a separate bank with a decent interest rate on cash savings (here's a hint, they're all going to be online-only). Open a savings account there, and have just a little bit from your check direct deposited in there, like $100 or whatever you can live without. Since the savings account is in a completely different bank, it's going to take at minimum 24 hours to 2 days to withdraw any cash from there (which should make you take a good long look at what you're doing and why), and after a couple of years you should have a few grand in there just sitting pretty. Savings is a marathon, not a sprint.Or you can just say fuck it and head out to Vegas. I give no fucks either way. Quote Link to comment Share on other sites More sharing options...
swingset Posted July 25, 2012 Report Share Posted July 25, 2012 I wonder if this is why Mitt Romney won't release his tax returns... Maybe he got "laid off" *wink wink* from Bain Capital?At least he's had a real job at some point in his life. Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 At least he's had a real job at some point in his life.What's your point exactly? Quote Link to comment Share on other sites More sharing options...
Meanie Posted July 25, 2012 Report Share Posted July 25, 2012 I am in the process of switching banks now. Leaving Chase because of BS fees, moving to a credit union, which has much better interest rates on car loans. I have already transferred the majority of my bill pays and just waiting on my DD to be moved. My wifes DD has already been moved. It's been a pretty painless transition thus far. Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 I am in the process of switching banks now. Leaving Chase because of BS fees, moving to a credit union, which has much better interest rates on car loans. I have already transferred the majority of my bill pays and just waiting on my DD to be moved. My wifes DD has already been moved. It's been a pretty painless transition thus far.Good to hear. Which CU are you going to? Quote Link to comment Share on other sites More sharing options...
John Posted July 25, 2012 Report Share Posted July 25, 2012 It wasn't long ago that a study came out saying something like 80% of people couldn't come up with $1k in cash (this still amazes me) so I'm guessing most people couldn't even afford to switch.sucks to suck... Quote Link to comment Share on other sites More sharing options...
Cheech Posted July 25, 2012 Report Share Posted July 25, 2012 sucks to suck...lawl at stealing the cash bag shot from The Oatmeal. Quote Link to comment Share on other sites More sharing options...
magley64 Posted July 25, 2012 Report Share Posted July 25, 2012 At least he's had a real job at some point in his life.yup, if you call being an investor and CEO a "job", but then if being an investor is a job then being a politician is just as worthyHas he ever broken a sweat in the process of earning money? I doubt it... Quote Link to comment Share on other sites More sharing options...
jbot Posted July 25, 2012 Report Share Posted July 25, 2012 yup, if you call being an investor and CEO a "job", but then if being an investor is a job then being a politician is just as worthyHas he ever broken a sweat in the process of earning money? I doubt it...you mean, doing stuff that doesn't involve getting your hands dirty (literally) or physical labor is not a "job"? Quote Link to comment Share on other sites More sharing options...
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