So, you’ve been wanting to end your relationship with your mega-bank, but you can’t break up just yet. While you work toward making a clean break, we’ve got some suggestions for how you can “cheat” on your mega-bank: ways you can move money into banking products from community development financial institutions (CDFIs), even if you’re maintaining a primary bank account elsewhere.
1. Savings accounts — No matter where you keep your primary checking account, you can open up a savings account with a community development bank or credit union anywhere in the country. Many CDFIs offer online banking services, so consider shopping around for a bank or credit union that matches your values best.
2. IRAs, Roth IRAs, Education Savings Accounts, and money-market accounts — For your education, retirement, and other specialized long-term savings needs, these common types of savings accounts can be found at many, but not all, community development banks and credit unions. Be sure to roll over IRAs from your mega-bank to your new community development bank or credit union without taking money out to avoid any tax liabilities. Be aware that money market savings accounts often require a relatively high minimum balance, and offer relatively high rates of return, based on current interest rates. Continue reading “7 Ways to Cheat on Your Mega-Bank”