This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

'Bank Transfer Day' Won't Hurt Big Banks -- Why You Should Switch Banks Anyway

Stocks in this article: BAC

Don't Switch For Spite

So, if you are mad enough at your TBTF bank to switch, do it because it will benefit you, not for spite. For example, if you use automated bill pay services, you will likely have to re-specify all of your vendors if you switch, and you will lose automated history. If you have direct deposits, you will have to contact all of the originating entities, sign the appropriate documents, and then jump through any other hoops that are imposed. Finally, if you have a loan with a TBTF bank, if you switch, you may lose a rate concession based on your consumer banking relationships. If you still want to pursue switching, some CBs and CUs have people and instructions that will make it easier for you to switch. Be sure to ask your local CB or CU if they have such help.

There is no doubt that, as a general rule, the CBs and CUs are more consumer friendly than the TBTF. But banks come in many shapes and sizes. Some of the larger regional banks aren't really too different than TBTF in their treatment of consumers. And, there are also some TBTF branches that have personnel that really care about the clients and act on their behalf. But, by and large, the rules and policies imposed by the TBTF institutions on their employees make such branches the exception. So, if you are not getting the service you want or feel you are paying too much, here are some things to look for at a CB or CU:

1) Choose a bank where the tellers will know you by name, and you won't be charged extra to use the tellers.

2) Look at the services you use, and make sure the CB or CU has the same or similar services. As a general rule, nearly all of the services used by consumers are offered at CBs or CUs, but at lower prices.

3) Most CBs and CUs have credit and debit card services and have joined a national ATM network to allow you to use your debit card to get cash almost anywhere. Ask the CB or CU you are considering if they will refund all or part of the fees charged by most ATM vendors.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs