According to industry data, the average consumer keeps the same checking account for up to 19 years, making it one of the longest-held financial products. Yet while many consumers take an “if it’s not broken, don’t fix it” approach to their checking accounts, many also fail to regularly assess these products to make sure they still work for them.
The right account should save you money and simplify your life, and at Island Federal, we’re proud to serve as the local, member-owned option for members throughout Nassau and Suffolk Counties.
So, does your checking account still work for you? Read on to learn more about signs it may be time to switch your checking account and why a credit union can serve as the ideal option for these products.
How to Know When It’s Time for a New Checking Account
Think it’s time to assess other checking account options? Here’s a look at five signs that it’s likely the right time for a change:
1. You’re Paying Too Much in Fees
One of the biggest reasons consumers switch checking accounts is if you’re paying too much in fees. Some conventional banks can charge monthly fees as high as $15 per month and overcharge fees can exceed $35 per occurrence. Out-of-network ATM fees are another common expense. These charges can all add up over the course of a year.
Conversely, credit unions like Island Federal offer fee-free checking accounts with no monthly maintenance fees, overdraft protection and a network of 125,000 fee-free ATMs.
2. Your Money Isn’t Earning Anything
Are you being rewarded for your checking balance? Or is your account paying zero interest?
Just because it’s a checking account doesn’t mean that your money can’t work harder for you. At Island Federal, you’ll earn 0.05% on checking account balances over $2,500, and you can also earn reward points with debit purchases that can be redeemed for cash back and other discounts.
3. The Customer Service Leaves You Frustrated
Your checking account is likely the one you’ll use most often, underscoring the importance of quality customer service. Many big banks tend to offer more impersonal service. Conversely, credit unions are member-owned and relationship-based, offering local, personalized service when and where you need it.
4. You’ve Moved, Changed Jobs, or Outgrown Your Bank
Another good reason to switch your checking account is if a life change has exposed gaps or shortcomings in your current banking partner (i.e., branch access, ATMs, etc.). A new move or new job has the potential to take you further away from the branch locations and ATMs that you once relied on for your banking needs. A life change may also expose a lack of features, like direct deposit or online bill pay, that could now benefit you in a new bank account.
5. The Technology Feels Outdated
Does your financial institution offer a mobile app where you can easily manage checking deposits, transfers, bill pay and more? Or do you still have to visit your local branch to access your account? Clunky or unreliable technology is technology worth leaving behind. A good financial partner should make it easy and convenient to access your accounts, not more difficult.
Big Bank vs. Island Federal Checking
Credit union vs bank checking accounts? Wondering what option is best for you? Here’s a closer look at the features and services that you can expect from each entity:
| Feature | Big Bank | Island Federal |
| Monthly maintenance fees | Common, may exceed $15 per month | Low or waived |
| Interest on checking accounts | Rarely offered | Available on eligible accounts; 0.05% on balances of $2,500 or more |
| Customer service | Call centers, high volume, impersonal | Features a local, member-focused Long Island team |
| Ownership | Shareholder-driven | Member-owned, non-profit model |
| Branch and ATM access | Varies, often includes out-of-network fees | Local branches, shared ATM network |
How to Switch Your Checking Account in 6 Steps
Switching your checking account is easier and more convenient than you might think. Here’s a step-by-step overview of what you need to do when switching banks:
- Confirm membership and gather your documentation: If you’re switching to Island Federal, confirm that you’re a current member or meet the eligibility requirements to become a member. You’ll then need to present your ID and your Social Security Number to open your checking account.
- Update your direct deposit: Once your account is open, give your checking account number and routing number to your employer so that your paychecks can be direct deposited into the new account.
- Update any automatic payments: Update any automatic payments (i.e., utilities, subscription services, etc.) you want to come out of checking. This is especially important to avoid any overdraft fees with your previous checking account once you’ve updated direct deposit.
- Keep your previous account open: Keep your previous account open for 30-60 days to ensure any pending checks clear and direct deposit and automatic payments are routed to your new account.
- Monitor both accounts: Keep an eye on both of your checking accounts over the aforementioned 30-60 days. While you’ll want to make sure everything is depositing and being deducted properly in your new account, this gives you ample time to make sure you didn’t miss anything in your old account.
- Close your old account: Once you’re confident that automatic payments and direct deposit transfers have been successful, transfer or withdraw any remaining cash from your old checking account and close it. Keeping it open for an extended period could incur monthly fees or low-balance fees on an account you’re no longer using.
Ready to Switch? Make the Move to Island Federal
Whether you’re looking for fee-free checking, more personalized customer service or a recent life change now affords you the opportunity to compare other checking options, know that a better account is within reach at Island Federal.
If you’re ready to open a new checking account that can help your money work harder, contact us for more information or stop into your local branch today. With no monthly fees, no minimum balance requirements, and full access to online and mobile banking, Island Federal makes it easy to bank with confidence. Contact us today to learn more.
Frequently Asked Questions
What are the signs it’s time to switch checking accounts?
Some signs that it’s time to switch checking accounts include excessive monthly fees, you’re not earning interest on balances or rewards on debit transactions, poor customer service, a life change or outdated technology.
Does switching checking accounts hurt your credit score?
Deposit accounts are not reported to the major credit bureaus, so switching your checking account is not likely to impact your credit score.
How long does it take to switch checking accounts?
While you can open a new checking account in minutes, take time to reroute direct deposits and update any automatic bill payments to your new account. For this reason, we suggest waiting several billing cycles, or 30-60 days, to ensure everything is properly updated before closing your old account.
Is it worth switching from a big bank to a credit union?
Yes, credit unions offer several advantages over big banks. At Island Federal, we offer local and personalized service, interest on checking balances and rewards on debit purchases, 24/7 account access via mobile and online banking, zero monthly fees and an expansive network of fee-free ATMs.
What do I need to open a new checking account?
Aside from credit union membership, you’ll need your ID and Social Security Number to open a new checking account at Island Federal.
How do I move my direct deposit and automatic payments to a new account?
Contact your employer and provide it with your new checking account number and routing number to transfer direct deposit. For automatic payments, contact each provider directly.
Should I close my old checking account right away?
No, it’s best practice to keep your old account open for 30-60 days to ensure that direct deposits and any automatic payments are properly routed to your new account.
Can I switch my checking account to Island Federal if I live on Long Island?
Yes, eligible members are anyone who lives, works, worships or attends school in Nassau County (which includes Long Island) or various portions of Suffolk County.