Move Your Money

Why am I better off with a credit union?
In some ways the offerings are similar. Both big banks and credit unions offer checking, savings, loans, and insurance up to $250,000. There are some important differences though, for example:

Big banks have profit goals to meet and shareholders to answer to, while credit unions, as non-profits, are motivated by serving their members. That’s right. You are not a customer like at your big bank. You are a member.

Credits unions are non-profit organizations, which means they invest any profits back into the organization, typically in the form of discounted services, higher savings rates, and lower credit card rates. Plus, many credit unions are locally operated.

Afraid of losing that convenient ATM on every corner? Many credit unions offer ATM fee reimbursement, so you actually have a broader network than you did before switching.

Afraid of losing that convenient big bank phone app? It’s the future people! Mobile deposits are also common with many credit unions these days, so have no fear.

In short, credit unions invest in your interests and you share in their profits. Now THAT sounds like the kind of place you want to keep your hard-earned money!
Expand / Collapse Details

Why am I better off with a credit union?
In some ways the offerings are similar. Both big banks and credit unions offer checking, savings, loans, and insurance up to $250,000. There are some important differences though, for example:

Big banks have profit goals to meet and shareholders to answer to, while credit unions, as non-profits, are motivated by serving their members. That’s right. You are not a customer like at your big bank. You are a member.

Credits unions are non-profit organizations, which means they invest any profits back into the organization, typically in the form of discounted services, higher savings rates, and lower credit card rates. Plus, many credit unions are locally operated.

Afraid of losing that convenient ATM on every corner? Many credit unions offer ATM fee reimbursement, so you actually have a broader network than you did before switching.

Afraid of losing that convenient big bank phone app? It’s the future people! Mobile deposits are also common with many credit unions these days, so have no fear.

In short, credit unions invest in your interests and you share in their profits. Now THAT sounds like the kind of place you want to keep your hard-earned money!
Expand / Collapse Details

Step 1
Find a credit union and open an account.
Here is a Credit Union finder that we found super handy. It helps you sort by the services you need, such as personal loans, checking, etc. Since all CUs are different, make sure they offer the services you’ll need. (Usually, they’ll offer more than you need.)

Open an account. You can probably do it online, but we like going in person. Check the requirements before you head in: when we did it we needed a government-issued ID, proof of address, your SSN, and a minimum deposit to open the account (cash, check or money order). Some CUs cater to employees of a certain company or residents of a certain city, so pay attention to those details as well. In San Francisco, we love the SF Fire Credit Union, which is available to all SF residents, but there are a few to choose from here.
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Step 2
Once you’ve established an account, move most of your money.
If you get paid via direct deposit, initiate that switch next. It's painless.

Your old bank is a jerk and it wants to squeeze as many fees out of you as possible. It’s a good idea to keep some cash in your old account while you move all your recurring payments (which you’ll do in the next step) to make sure you don’t miss a payment and overdraw. Your old bank may also charge a fee if you don’t maintain a minimum balance, so keep that in mind too. On the bright side, most CUs don’t require a minimum balance, but ask to be sure. Big banks love to charge you fees. Don’t give them the satisfaction.

Transferring your money is easier than it sounds. The modern way to do this is via Electronic Funds Transfer (EFT) from your Big Bank’s website. The wire transfer pulls the funds from your big bank and puts them in your new bank with a click of a button. There may be a nominal one time fee for this though, so another option is to write a good old fashioned check and deposit it in your new account. We DO NOT recommend taking your money out in cash and walking over to your new bank, though that would be a possibility as well.

Remember: Set up a calendar reminder to close your account in one month. Set it right away so you don’t forget. The last thing you want to do is continue to fill your old bank’s coffers with any unnecessary charges or fees.
Expand / Collapse Details

Step 3
Get ready to close up shop. Reset all your automatic payments
This part is the least fun but damn is it rewarding. Take a look at your old statements to scan for recurring charges. Go back a full year so you don’t miss any of those tricky quarterly or annual payments. Consider things like subscriptions, memberships, ridesharing, financial services, bill and loan payments, web hosting and software, and anything else that's connected to your bank account. After you’ve switched your recurring payments, give yourself a month to make sure you’ve covered everything.

Before closing your old account, ask the old bank how long (if at all) you’ll be able to access your records. Save PDFs of any statements you might need on your computer and also consider backing them up in the cloud. (Note: for most people, keeping tax-related documents for 3 years is recommended, but please check with the IRS website to see what’s right for you)

When that monthly reminder hits you are sure you’ve moved all your bills and money, go into your old bank, close the account, and never look back (unless it’s to take a photo of you flipping off your old bank or thumbs-upping your new credit union.)

Your money is power. MOVE YOUR MONEY. Shift the power.
Expand / Collapse Details

Step 4
Close your old account and let them know why.
After a month, when you’re sure your direct deposit has moved and there are no outstanding checks or automatic debits that need to clear, withdraw the rest of your money and close your old account for good.

It’s really important to tell the big bank the reasons for moving your money.
Expand / Collapse Details

Step 1
Find a credit union and open an account.
Here is a Credit Union finder that we found super handy. It helps you sort by the services you need, such as personal loans, checking, etc. Since all CUs are different, make sure they offer the services you’ll need. (Usually, they’ll offer more than you need.)

Open an account. You can probably do it online, but we like going in person. Check the requirements before you head in: when we did it we needed a government-issued ID, proof of address, your SSN, and a minimum deposit to open the account (cash, check or money order). Some CUs cater to employees of a certain company or residents of a certain city, so pay attention to those details as well. In San Francisco, we love the SF Fire Credit Union, which is available to all SF residents, but there are a few to chose from here.
SHOW ME THE DETAILS

Step 2
Once you’ve established an account, move most of your money.
Your old bank is a jerk and it wants to squeeze as many fees out of you as possible. It’s a good idea to keep some cash in your old account while you move all your recurring payments (which you’ll do in the next step) to make sure you don’t miss a payment and overdraw. Your old bank may also charge a fee if you don’t maintain a minimum balance, so keep that in mind too. On the bright side, most CUs don’t require a minimum balance, but ask to be sure. Big banks love to charge you fees. Don’t give them the satisfaction.

Transferring your money is easier than it sounds. The modern way to do this is via Electronic Funds Transfer (EFT) from your Big Bank’s website. The wire transfer pulls the funds from your big bank and puts them in your new bank with a click of a button. There may be a nominal one time fee for this though, so another option is to write a good old fashioned check and deposit it in your new account. We DO NOT recommend taking your money out in cash and walking over to your new bank, though that would be a possibility as well.

Remember: Set up a calendar reminder to close your account in one month. Set it right away so you don’t forget. The last thing you want to do is continue to fill your old bank’s coffers with any unnecessary charges or fees.
GO ON

Step 3
Get ready to close up shop. Reset all your automatic payments
This part is the least fun but damn is it rewarding. Take a look at your old statements to scan for recurring charges. Go back a full year so you don’t miss any of those tricky quarterly or annual payments. Consider things like subscriptions, memberships, ridesharing, financial services, bill and loan payments, web hosting and software, and anything else that's connected to your bank account. After you’ve switched your recurring payments, give yourself a month to make sure you’ve covered everything.

Before closing your old account, ask the old bank how long (if at all) you’ll be able to access to your records. Save PDFs of any statements you might need on your computer and also consider backing them up in the cloud. (Note: for most people, keeping tax-related documents for 3 years is recommended, but please check with the IRS website to see what’s right for you)

When that monthly reminder hits you are sure you’ve moved all your bills and money, go into your old bank, close the account, and never look back (unless it’s to take a photo of you flipping off your old bank or thumbs-upping your new credit union.)

Your money is power. MOVE YOUR MONEY. Shift the power.
TELL ME MORE!

Step 4
Close your old account and let them know why.
After a month, when you’re sure your direct deposit has moved and there are no outstanding checks or automatic debits that need to clear, withdraw the rest of your money and close your old account for good.

It’s really important to tell the big bank the reasons for moving your money.
OK, LET'S BRING IT HOME