Two week win

tl;dr Using the rules, I started to switch banks so my dollars can work between jobs... without worry.

I started with YNAB about two, almost three weeks ago. Gave every dollar a job, trying to age my money by not doing the mad dash to pay all my bills on payday. My debt card's chip has been acting up, and I've needed to call and get a new one. Before rule 2, I had dread about remembering to find each payout and changing my card info.

It hit me I could consider changing banks. Why not use a bank that will let me put my dollars to work? If a goal is to age my money  why not let it collect interest? Started shopping around, and settled on Ally bank. Having a picture of where my money needed to go and when, as well as money aging, meant a lot of stress of how much to move, what needs to be updated, and when... was gone.

Like i said, its not a huge win, but one based on feeling empowered.

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  • Feeling empowered IS a HUGE win. It dramatically changing what you think is possible. Changing banks has always been available to you (it's available to all of us, really, whether we choose to do so or not). But it was having the system of YNAB that allowed you to think of it as possible for you. That's a big deal. And it makes me wonder... just what else is possible?

    Like 2
  • Nice one! I've been considering changing to Ally checking for a couple months now, but haven't pulled the trigger yet since I have a lot of direct deposits linked to my current checking account. It's charging me $25 a month as a "low balance" fee, though, so I know the sooner I switch the better...!

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      • TechieM2
      • IT Professional and General Geek
      • techiem2
      • 2 wk ago
      • 2
      • Reported - view

      Purple Panther $25/mo?  Ouch!

      Like 2
    • TechieM2 Your reply and this thread were the catalyst for me to finally sign up for a different checking account. Just opened today. Thanks! Haha

      Like 5
      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 2 wk ago
      • 1
      • Reported - view

      Purple Panther That $25 in one month is more than many's savings interest in a year! 😳

      Like 1
    • Superbone Yes, I didn't even realize no-fee accounts existed before! The plan is to gradually switch my day-to-day money over from the $25-fee checking account to my new checking account I just opened. But before I can close the first account, I have to unlink a lot of automatic payments, etc. over the next few weeks. 😪

      Like 1
      • TechieM2
      • IT Professional and General Geek
      • techiem2
      • 2 wk ago
      • 1
      • Reported - view

      Purple Panther Yeah...changing direct deposits and automatic payments is a pain.

      Like 1
      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 2 wk ago
      • 1
      • Reported - view

      Purple Panther I'm glad you're on the right path! Yeah, I've done it a couple times in the last couple years. It's a little tricky. You've got to keep enough in both accounts and wait until all automatic transactions have finished posting in the old account before you can close it.

      Like 1
      • Dave
      • Slate_Gray_Deer.9
      • 2 wk ago
      • 1
      • Reported - view

      Purple Panther glad to hear we could help bring about change.

      The strategy I’m using for my account switch is to move the money for things that aren’t based on my debit card, but account numbers. Think bank to bank payments like my mortgage, car, and credit card payments.  Funny part is I don’t even have my new debit card yet, so day to day and card based payments have to come out of my old account for now. 

      Like 1
    • Purple Panther I did it all recently & wish I did it sooner!! It wasn't that big of a deal.  A couple of hours tops to do all the transactions. Most things are online now. Make a list of all your debits & credits, then switch them over. Have money in there for a couple of months. I ended up not closing my account that was charging me $17/month but switched it to a basic at $4 since I use it for my investment withdrawals and debt smackdown. It makes a difference to earn money in your chequing account rather than pay big fees!! :)

      Like 3
    • Purple Panther 

      Sounds like you should definitely switch. That $25 a month could be an emergency fund in a year

      Like 2
  • Fortunately in the UK we have a system called CASS (Current Account Switching Service). You basically instruct your new bank to transfer your old account. They handle transferring across all your direct debits and standing orders, and it's all done within 7 working days.

    In addition, any charges made to your old bank, or any deposits made into your old bank account will automatically be forwarded on to your new account. Your old bank is required to do this for a minimum of 36 months, and can only stop once there's been a period of 13 months without needing to forward any payments to your new account.

    So it's been made an almost seamless experience here in the UK.

    Like 5
    • Richard Holland 😮Wow!

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      • Cyan Yeti
      • Cyan_Yeti.6
      • 2 wk ago
      • Reported - view

      Richard Holland Yes-WOW!!!

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      • Dave
      • Slate_Gray_Deer.9
      • 2 wk ago
      • Reported - view

      Wish we had something like that
       

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    • Richard Holland Now that is totally cool! Is the UK on a standard banking system too? In Canada we have to do the manual changes ourselves but i would assume that it is easier to set up if the base system is standardized. My understanding is that there is not a standardized banking system in the US which would make this quite complicated. But if we could do that in Canada it would be sooooooo cool!

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    • No, most banks have their own systems, but a few years ago the ombudsman (or government legislation, can't remember which) required the banks to make it easy for customers to switch, and imposed a set of requirements on all banks that they have to follow to retain their banking licences.

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