Want to switch your money out of the biggest banks? Report says it's a hassle

PHOENIX - Last year, frustration with the nation’s biggest banks reached a high point when Bank of America announced it would charge a $5 fee per month to their customers in order to use their debit cards.

People were so angry, the bank relented just weeks later and never implemented the fee.

That began the Move Your Money Project and there was even a National Bank Transfer Day . There was a lot of talk about people switching away from the big banks to local or community banks.

Despite the protests, though, a new report from Consumers Union says most consumers stayed put.

Studies show that while one in five customers who keep their money in the biggest banks said they considered switching their money to a smaller operation, only one in 14 Americans actually switched.

Why?

Consumers Union , a policy and action branch of Consumer Reports , might have the answer – “simply put: it takes time and money to move your money,” it says.

And there are lots of obstacles in your way if do try to close your account, according to the report, Trapped at the Bank: Removing Obstacles To Consumer Choice In Banking.

First, you have to transfer all of your automatic deposits and debits from your old account to your new one. Then, you’ll probably have to wait while those transfers are processed, according to the report.

There could also be fees for closing your account in the first place. And, some banks can even reopen your account even after you’ve closed it.

But it’s not impossible. Consumers Union lays out what you need to do if you want to switch accounts, plus, their experts list recommendations for how banks can make it easier for you to make the switch.

Here they are:

• Banks should bear the responsibility to transfer the automatic credits and debits from old to new accounts.
• Banks should provide same-day electronic fund transfers at no cost to consumer.
• Checkhold times should be reduced so that consumers can quickly access deposits in their new accounts.
• There should be no punitive fees to close an account.
• Banks should not reopen accounts after consumers close them.
• Account closing procedures must be transparent and easy to locate.
• The feasibility of bank account number portability should be examined.

Check out the full report here .

Have you ever thought about changing banks? Email me or go to my ABC15 Facebook page and tell me about your experience.