Should You Break Up with Your Bank?

Whether it's because of bailout money and executive bonuses, overdraft fees or jacked up credit card rates, a lot of customers are unhappy with their banks right now.

Standing outside a Bank of America, Alfred Parsons says he's upset about a recent letter informing him of higher ATM rates.

"Actually I thought about taking my money and withdrawing all of my money and keeping it under my mattress, the old fashioned way!" joked Parsons.

Instead, he says he's headed up the street, to see if a competitor bank can offer a better deal.

Should you call it quits with the company that holds your money? Evolution Finance and Cardhub.com communications director Alexandra McDougald says there's a lot to consider.

"You need to make sure that your next account is as beneficial financially to you as was your first account," said McDougald.

First, you should understand what kind of customer you are. Do you need overdraft protection? How many checks do you write each month? How often do you use the ATM?

Then, find out what you're paying for these services, either through the bank's web site, or a comparison site like Bankrate.com. In some cases, you'll need to call the bank to get a complete schedule of fees.

In its 2009 Checking Study, Bankrate.com found that, no surprise, bounced check fees rose to another record high.

Today, overdraft fees range from $22 to $35 per check. Some banks are using a tiered system that charges customers more for each subsequent bounced check. ATM fees rose more than 10 percent, and can be as high as $3 a transaction. There are also maintenance fees, check enclosure fees, and fees for using a PIN for purchase.

After you've surveyed the land mine of fees, make sure you're dealing with facts, instead of emotion, counsels David Cunningham of Landmark Education.

"It's really important. If the account you've got isn't working for you, close it," says Cunningham.

There is always the chance that you may decide to stick with your financial institution, but Cunningham believes knowledge is power.

If you decide to walk away, it's not hard -- but it is time consuming.

After you open a new account, says McDougald, "Provide them with the routing number and account number from your old bank, and they can just do a wire transfer. You call your old financial institution after that's complete and say I'm ready to close this out."

Don't forget to transfer any automatic deposits and bill payments, leave enough money in your old account to cover checks that haven't cleared, and have some cash on hand during the transition in case there are any glitches.

Cunningham says doing homework and taking action helps shake off any doubt.

"That's the point of it, that you're left with peace of mind about what you're doing," he explains.

Once you start counting the savings, you'll know you've made the right decision.