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What to watch out when YOU switch to a new account?

on Sun, 06/12/2016 - 15:35

Bank account… is probably the first bank product we all encounter with… problem is, you never know what kind of bank account suits you until you try one. 

There are so many account packages out there, and I bet you outgrow your account features along the way too. 

My suggestion to any new account holders is to try a no fee bank account first so that you don’t get charge with unnecessary bank fees.

I have this experience with a few clients who didn’t know which bank account to choose from (seriously there are just way too many account packages out there). And I had young clients - mostly clients’ kids asked me what bank to go with. 

My suggestion to them is first to choose a bank close to where you normally go (close to the schools, or home, or your part-time jobs), so that at least you don’t have to make a trip just to go to the bank. And yes, that’s why every time people move, they tend to stay at their bank and then move to a new bank after a few months.

There was this other client he started a student account (switched from a kid's account) and he was using lots of interac transactions, not realizing the account he has only offer a limited number of transactions. Of course the bank had charged him with bank fees (even more than the normal amount of a chequing account). Eventually he had to go into the bank and negotiate with the banker to get those fees waived and changed to a more suitable account for him. What an experience!

However, what really annoying is what happens when you move from one bank to another bank, especially if you have to move your pre-authorized transactions. seems to be very straight forward, but you really need to make sure you have buffer in your current account in case the service providers do not change over to your new account in time.

Here is a client’s painful experience, together with his advise to any of you who plan (or eventually will) move your account from one bank to another:
The phone calls. Customer service.  NSF charges for the pre-authorized bills that you forgot to change over. Ugh! What a process. In the mist of the NSF charges, missed payments and errors from both my end the end of the payee, the experience of changing over banks has been one that I have come to dread. I have learned a few valuable lessons this past week when it comes to switching over financial services: 
Make a list of ALL accounts you have that require pre-authorized debits, leave some money in the account that you are closing just in case and last but not least, call or email to confirm that your pre-authorized payments have received your new banking information and are ready to debit that account in the near future.

As you see, I cannot stress how important it is to confirm that your new banking information was received and it was correct. I have this other client who switched account and sent in new account information, just to realize that they read the account number wrongly and had been charging another account holder for the payment. Of course, after a few months, the other account holder found out about this "unknown payment" going on, and the service provider came back and charged the client all the outstanding balance all at once. Not to mention it screwed up her cashflow that particular month, she found out her credit bureau had negatively reported on it as the service provider considered her missed all her payments over that period of time!

Did you have similar experience, or even worse things happened? Why don’t you contact us and share yours?

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