Switching bank accounts: onwards and upwards!

As mentioned in a previous post, I recently decided to switch over to PC Financial. The reason for this switch was mainly the increases in my banking fees as of late. Of course I understand that I’m paying for service and convenience, but as an avid online-banker, I am perfectly happy doing all of my banking online. In fact, going into the bank to close my account was probably the first time I’d set foot inside a branch in years. As such, I’m happy to move over to CIBC’s little sister PC.

The process

Give yourself about one month to get everything switched over. In my case, the process included:

  • Opening up a PC account and adding bill payees
  • Switching over my direct deposits from my part-time job
  • Waiting for my contract job to finish (I didn’t want the additional work of switching over my direct deposit when I only had 1-2 pay periods left)
  • Canceling my automatic transfers into my ING savings account

Most of these tasks are simple, but switching over direct deposits can take some time. This is why I decided to switch over while between jobs. This way it was one less direct deposit transfer to worry about.  Last week, once I confirmed that my deposits were in fact being received into my new account, I went in and canceled my CIBC account. It was quick and painless!

My line of credit

Irrational blogger confession: I have a CIBC line of credit with an interest rate of 6%. I love my LOC. Back when I had no money, I put about $3,000 on it for a car repair. I’ve been slowly chipping away at it to the tune of a few hundred dollars a month, leaving about $1,300. I always think it’s pretty silly when people leave debt while they have enough money to pay it off, and this is exactly what I’ve been doing. I definitely see why people do it now! It’s psychological and it makes you feel like you have more money than you do. Although the interest on such a small sum is miniscule, it definitely makes no sense to pay any interest at all.

After apprehensively paying out my LOC and closing my chequing account, I am happy to say I’ve slashed about $20 per month in banking/interest fees! Small changes people, small changes.

What’s next?

Confusingly, I now hold too many accounts including:

  • PC Chequings
  • PC Savings
  • ING Savings (one individual, one joint with bf)
  • CIBC Line of credit

I am not entirely sure what one rather small individual is supposed to do with five bank accounts so I’m going to have to get organized! As some of you may know, ING is facing some upheaval resulting in a potential large bank buyout. Not sure what this will mean for current INGers? Potential fees I say!

I know some bloggers like to keep many accounts for different purposes but I would personally prefer to keep one savings account and earmark for different purposes. I will probably try to stay within the PC family to keep things simple and cancel my individual ING savings account. I will also be keeping my LOC for emergencies. Not many of you know it, but I am not a huge proponent of an emergency fund!

Have you ever switched bank accounts? 

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