Thousands of Americans transferred to smaller institutions on Bank Transfer Day last year to take a stand against megabanks and their heavy reliance on poorly disclosed service fee income. However, big banks don't make it easy to switch.
Many large institutions charge several fees for different services relating to closing accounts and transferring funds. In addition, if the wire transfers from a large bank to another are not completed properly, accounts at the former bank may remain open, which can trigger a domino effect of maintenance fees and overdrafts.
To facilitate the process for consumers who want to save money and headaches by switching to a local institution, many community banks and credit unions are helping consumers undergo the process, according to Bankrate.com.
These smaller institutions often offer "switch kits," which provide guidance on all the proper steps to take to quickly and efficiently open new accounts, transfer money, set up direct deposit and enroll on online or mobile banking. This guidance can also ensure that Americans follow a concrete set of steps in order to avoid unnecessary fees and expenses. Studies show that more consumers are contemplating making the switch to a more affordable institution, but many are deterred by the process.