Growing frustration with the financial industry has inspired many people to reconsider their banking options. 
The role that many large banks played in the near collapse of the US financial system has sparked a recent grassroots movement that encourages people to move their money away from large institutions and into community banks and credit unions.
Many people are discovering that local community banks and credit unions represent values that are more aligned with their own.
Local banks often invest most of their profits back into the local community, have their top executives living in the community, and can quickly make business decisions since they are owned locally.
The “Move Your Money” campaign spearheaded by Arianna Huffington of the Huffington Post and Rob Johnson of the Roosevelt Institute is leading the charge.
It’s important to identify your local community banks and credit unions and see if they are a better fit for you than a larger institution.
The following list of actions offers an easy and useful way to locate and evaluate your community banking options.
1) Locate Banks
An important first step is to locate your local community banking institutions. The following are two resourceful online locators that will help you create your first list.
The Independent Community Bankers of America has a community bank locator page on their website. You may also look for their iPhone and iPod Touch application by searching for “ICBA Community Bank Locator” on iTunes.
The not-for-profit trade group Credit Union National Association has a credit union locator page on their website that may also assist you in your search.
2) Evaluate Banks
Once you have your list of candidates it’s time to screen them and decide which one is best for you.
There are many variables to consider as you search for a new banking institution. A more extensive list of them can be found here.
You’re likely to be most concerned with the fee structure and the list of products and services offered. Online banking, access to a wide network of ATMs, and savings and loan rates are just a few of the services that you may consider important.
An indispensable resource in your search is the website bankrate.com. You can search and compare banks using their “Safe and Sound” bank rating system that ranks both credit unions and banks. You may also use their site to determine how competitive your bank candidates are when it comes to loan interest rates, CDs, and checking/savings accounts.
Another helpful resource for bank ratings is Bauer Financial. They offer a bank and credit union search that will quickly help you determine the rankings of your banks.
3) Transfer Accounts
Once you’ve found the right bank for you it’s time to begin moving your account.
You should make sure that your new bank account is open before you close your old account. It’s important that you have your new debit or credit card in hand. It usually takes several days to a week for new cards and checks to arrive by mail.
You may want to consider moving a small percentage of your money into your new bank account first. This will allow you to familiarize yourself with their system and make sure that all of your online banking, cards and other services are fully activated and ready to be used.
Make a list of any accounts that may be connected to your old bank account. These could include direct deposit accounts from your employer or scheduled billing services.
Finally, you can make that phone call you’ve always wanted to make, and let your old bank know you’re finished with them.
Photo Credit: http://www.flickr.com/photos/kubina / CC BY-SA 2.0
