How to Switch Banks and Move Your Checking Account to InTouch Credit Union
Switching banks is easier than many people think. With a little planning, you can transfer direct deposits, update recurring payments, move your checking account, and complete the transition with confidence.
We have good news for you—it’s easy to switch banks! While it isn’t something you can simply automate, going through the process can help you get a better understanding of what charges are hitting your checking account each month.
To start, you will need to know what bills and subscriptions may be attached to your current account. Making a move has the dual benefit of moving your account to the credit union of your choice, and the opportunity to clear out subscriptions that are not useful to you anymore.
In fact, the best first step when deciding to change banks is to know exactly what vendors, employers, or organizations draw from or pay into your account. Be sure to check for the ones that charge less often than monthly - they’re easier to overlook. You need to identify charges that occur quarterly, or even once a year. Insurance payments and taxes (or returns), for example, may be less frequent, but are important not to miss!
Another thing to consider is whether you still have a loan at your old bank. You will want to look at whether your loan came with any requirements for payment transfer from an internal account. While you may keep the old account open to pay the loan, check on whether there are fees for not maintaining a certain balance in that account, as you may not want to keep a lot of money in it once you switch to InTouch. Once you have identified and cleaned up your list, it is time to get (your money) moving.
Switching to Your New Credit Union Account
Open your account at InTouch by meeting eligibility requirements, applying, and depositing at least $5 into a Savings Account. With that simple process, your basic membership is all wrapped up! Now, look over our variety of Checking Account Options to find the one that best suits your needs and open your checking account. You are now ready to start the switch.
This is the moment when strategy becomes useful. You'll want to move your paycheck's direct deposit when it is least likely to create an issue. Consider when bills are typically withdrawn and make sure sufficient funds remain in your old account. Keep an eye on both accounts during the transition. Employers often process payroll changes only during certain pay cycles. We make moving electronic payroll and direct deposits easy. Simply look for "Direct Deposit" under "Tools" in the Digital Banking app and follow the prompts.
Once your paycheck begins depositing into your new account, you can typically update payment information directly through the websites and apps of your service providers. Save yourself time and frustration by having your account and routing numbers available ahead of time.
Once you are sure all of your direct billing items have switched over, you can close your old account. ITCU does not charge a fee to move money from another financial institution if the transfer is made using the external accounts transfer feature in Digital Banking. But if you have the money sent by ACH or wire, there could a be a fee. Check out the Fee Schedule to see that information. You can even write a personal check for the amount left in the account, in most cases, and carry it to a branch to deposit, if you prefer.
What Accounts Should You Not Switch?
There are just a few accounts that you may want to leave alone to do what they do best. If you have a loan at a very good rate, or with fewer than 24 months left on it with the bank you’re switching away from, and you cannot switch the payment to ITCU without penalty. you might want to let it run its course, rather than refinance (unless InTouch can offer a better rate). It’s always a good idea to run loan change ideas through a Loan Calculator to see which course may be more beneficial.
Certificates of deposit (CDs) could lose significant amounts of interest if you withdraw them from the bank you’re switching from before their maturity dates. If you have CDs (often called share certificates at credit unions), it is wise to leave them in place until their maturity. Just be sure to stipulate that they should not roll over, but drop into a savings or checking account, so you can withdraw the funds after their term has completed. Good interest rates can be hard to come by, so it would be a shame to lose what you have earned.
Tying up Loose Ends
Some banks and credit unions have a specific process, which may include filling out a form, to close out your accounts, so be sure to check that you are finalizing your exit in a way that doesn’t bring a fee with it. No one wants a zombie account following them around!
It is OK for the process to take several weeks. Mobile banking apps and online banking make it easy to see which accounts have activity and what that activity is. If you stay on top of your old account for a little while, things should go smoothly. And since there’s always “just one more thing,” don’t forget to put all of your old checks and debit cards through a shredder once that old account is completely closed.
