Phew – that was more work than I thought it would be! Sure, I could have moved a boatload of money from one of my ING accounts to Schwab to cover any expenses, changed all my automatic bill pays, and hoped for the best – but I didn’t. Instead I did it slowly over a month or so, changing my direct deposits right after they went through for January, changing my e-bills as soon as they were paid for January, and slowly funding the Schwab checking account with money from my BofA savings account. As of this morning, all my e-bills have been moved, all my direct deposits have been redirected, all my automatic payments (like for my Subaru) are switched over, and my BofA check card has been removed from my wallet. There is still a few hundred bucks left in the account just in case I missed something that may yet come through, but otherwise I am completely switched over. And so far, I think it’s the best decision for my banking needs that I could have made. I considered moving to a credit union, which are fantastic, but I also wanted to consolidate 5 different brokerage accounts to the same place/company – so I also opened a new Schwab brokerage. This will make tracking all this stuff way easier now!
So here is where I stand right now in terms of the accounts I have:
Checking = Charles Schwab bank
Brokerage for individual stocks, bonds = Schwab
Brokerage for Roth & Mutual Fund = T. Rowe Price
Savings = ING Direct (emergency fund, quarterly taxes fund, motorcycle fund)
Consolidating down to these accounts has certainly made my life a little easier and a little less confusing.
As for why I switched to Schwab from BofA, well, there are many reasons:
– Free checking
– Free checks
– Free address labels
– Free deposit by mail envelopes, postage already paid
– Free use of any ATM, anywhere. Any fees I am charged by the ATM owner are refunded to me in my account
– Checking account pays 0.60% APY
– No account minimums, fees, charges
– And for the brokerage, they have $8.95 trades, no-fee ETF’s, and no account minimums
While they are still a bigger bank than a local credit union, they are nowhere near the size of BofA or Wells Fargo – and that’s what I was trying to get away from. I have grown very tired of hearing about big banks and their problems, and then watching them hand out million dollar bonuses while nickel and diming me to death. So, I moved my money somewhere else. And if Schwab starts doing it too, I will leave them as well. But for now, I am very happy.
How about you? Have you moved your money to a different bank lately? If so, why? Many are participating in the “Move Your Money” campaign as of late – are you?