If you’ve been tracking this blog, you know that I had some very self-confessional posts a while back about leaving one bank for another. The bank I was using for my company was trouble from the start, but I was afraid to move to a new bank, not just because of the hassle involved but because I simply felt trapped.

I finally took the plunge and moved my company’s business to Key Bank. During that process, I was fortunate to be able to speak with Maria Coyne, EVP, Key4Women. She provided me with the following tips about switching banks for this blog.

from Maria Coyne…

Switching banks can be a daunting prospect so making the move is often put on the bottom of the “to do list.” But understanding the correct steps in transferring banks can make the process less stressful. If you’ve been considering transferring to a bank that is more closely aligned with your financial goals and personal values, first take time to research the new bank to know if it’s the right fit for you and then understand the logistics that make the transfer legal.

The steps below can help you seamlessly transfer your accounts from one bank to another. To begin, see if your new bank has a “transfer kit,” which offers a single source for all the forms required to transfer your personal and business accounts, including automatic deposits and payments. Consider this fair warning: once you find the right bank, the process may even be enjoyable!

The logistics

Step 1: Open new account(s) at your new bank.

Step 2: Print out a checklist to help guide you, if your new bank has one available.

Step 3: “MONEY OUT.” First, cancel ACH payments – or the money that comes out of your old account automatically based on a predetermined payment schedule – such as loan payments, utility payments, insurance payments, etc. Then re-establish the ability for these same entities to be paid via automatic payment deductions (ACH) from your new account. Provide written instructions to these providers with your new account information.

Step 4: “MONEY IN.” Transfer or establish direct deposits – or the “money in” – to your new account. If you are an individual employed by a company, authorize the transfer of your payroll check direct deposit or other income from the old to your new checking or savings account, by signing a direct deposit sign-up form. This form also authorizes direct deposit of government checks (i.e. Social Security).

Step 5: If you have a credit relationship with your old bank, authorize them in writing to payoff your credit card, loan or line of credit balances with funds you designate and then close those account(s). You do this by signing a credit payoff form. Both you and they will have a written copy of the payoff to keep for future reference.

Step 6: After everything has cleared, including all checks written and any payments coming out of your old account, close the account by signing an account closure request form. This form provides notice and authorization to your financial institution to close your account(s) and issue you a check for the remaining balances.

Step 7: Transfer other accounts. Contact your local branch or call their 1-800 number to talk to a banker about transferring retirement and other accounts to your new bank. Having a full relationship with your new bank will make managing accounts easier for you, and it will help them know you better.

The relationship

In addition to the logistic considerations, ask about the relationship your new bank is able to offer:

1. Does the new bank have a comprehensive product set that allows you to remain with them as you grow?
2. Does you new bank have online capabilities, including those that prevent fraud?
3. Does the new bank have a relationship manager or other team or branch members assigned to you who will keep your needs top of mind?
4. Has the new bank been in business a long time?
5. Is the new bank invested in the community through partnerships with nonprofits, community development projects, large and small businesses, and consumers?
6. Will your new relationship manager be able to make decisions for you on his or her own, or will s/he have to defer to headquarters for approval each time?
7. Is your new bank well-capitalized according to FDIC standards (i.e., a minimum of 6% Tier 1 capital)?
8. Are they rated “investment grade” by the credit rating agencies like Moody’s, Standard and Poor’s, and Fitch?
9. If you are a woman owned business, does your new bank have a women-owned business program that offers you benefits like access to credit, customized solutions, networking or educational opportunities?

I used many of these tips provided by Key Bank during my own bank transferring experience, and I have to say that the entire process was far less difficult having the support and information I needed every step of the way.

Have you ever switched banks? How did it go? Or if you haven’t switched banks but are unhappy with your current bank, what is holding you back?