I’m Getting A Divorce

I am sick and tired of putting up with it. I give and give and give but all I ever get in return is take, take, take. If I make one little mistake on ANYTHING I get zinged like there’s no tomorrow. I look at others and wonder if they experience the same thing. Some of them I’m sure are getting more from their relationship than I am. They boldly flaunt it.

I’m getting a divorce from my bank.

It won’t be easy. My bank and I are joined together, tangled even, in so many ways. My mortgage is with them, I have a savings account there, my children have their savings accounts there, and did I mention all the automatic drafts and payments we’ve set up together? This won’t be easy, but it has to be done, despite the sticky hassle it might become. Why am I and so many others ready to divorce our banks?

  • Too many crazy fees
  • Other banks offer higher interest rates
  • ATM fees
  • A really bad online interface

What’s my plan for divorcing my bank?

First, I don’t plan on leaving all at once, but over the course of several months. I plan to leave a few bucks in my old checking account just to be on the safe side. There could be a quarterly draft or something I’ve forgotten to switch over and I don’t want to get zinged again because of one little mistake. That way, every time I see another automatic draft on the old account, I can switch it over.

Second, I’ll closely monitor both my old account and my new account online. By doing so, I can easily monitor my relationships with my mortgage , car insurance company, life insurance company, and others to make certain they’ve started drafting from my new account and not the old one. I have sent checks to some companies in the past that waited 4 or 5 weeks to deposit them (picture me shaking my head).

Lastly, I don’t plan to burn any bridges with my old bank. I’ve had an account there since I was six years old! I’ll also make sure they have my correct contact information so that any 1099’s or interest statements (though they will be small amounts) will be sent to my proper address.

Wherever will I go, whatever will I do?

There are a couple of options I’m considering.

  1. WT Direct is currently offering a $150 BONUS to new account holders. Free money is ALWAYS good.
  2. Bank of Internet provides online banking services including high interest checking as well as mortgages. Interest rates on their savings accounts are running 2.06 percent APY as of today. Do you know the difference between APR and APY?
  3. EverBank offers outstanding yields on money market accounts, right now as high as 3.15 percent.

The main thing I plan to do is spread my money around. Right now I’m worried because my main checking account (where my main paycheck is deposited) is at the same bank where my mortgage is located. I’ve heard some horror stories about a mortgage payment being a few days late and the bank draining your checking account. The result? A boatload of overdrafts and fees. While I don’t plan on ever being late on a mortgage payment, I can never know the future and I think it makes sense for me to maintain some separation.

What about you? Have you gotten disgusted at your bank’s money grab in ATM fees, overdraft charges, lack of service, horrible online interface, or dreary interest rates?

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