A credit union may be worth a try

Many Canadians bank at credit unions, choosing them over the big banks because of lower fees and a perception of better service than the big banks.

Credit unions differ from banks and other financial institutions in that the members who have accounts in the credit union are owners of the credit union and thus have a voice.

According to a recent survey conducted by FirstOntario Credit Union, 40 per cent of Canadians are unhappy with the high service fees their bank charges them.  However, nearly 10 per cent said they are reluctant to switch because it is the only bank they have ever had, or they feel that switching would be too much trouble.

The thought of switching banks can be daunting, but the reality is that switching to a credit union is simple and straightforward. 

Here's how to get started:

Set a date: Any big decision requires planning. Setting a date gives you time to plan according to a timeline that works for you.

Tell a friend:  It may surprise you how many people you know have actually switched banks or gone to a community-based credit union. Their experience may prove useful, and they can point out shortcuts or tips that could come in handy.

More than 10 million Canadians are members of an affiliated credit union across Canada, drawn by lower banking fees and the ability to have a voice in how their financial institution is run.

Open your new account:  Generally, you just need an initial deposit in order to open an account.  Credit unions provide the same products and services expected from a financial institution but with a personal, friendly touch and a commitment to invest back in the communities in which they operate.

Get your new account in order:  Ensure your new account is fully functioning.  Order new cheques and reroute your direct debits and direct deposits. 

Ask the credit union for a direct deposit authorization form that includes your new account information. Give this form to your employer and anyone else who makes direct deposits to your account.

Also Read:

The benefits of bundling your banking

Why I moved my savings to ING Direct

Robb Engen is half of the Boomer & Echo personal finance blogging team with his mother, a former financial advisor.  Reach him at robbengen@gmail.com