3 steps for switching banks

This post comes from Karla Bowsher at partner site Money Talks News.

If your bank raised its fees tomorrow -- and it seems to be happening more and more -- would you ditch 'em? Most of us would, according to the National Foundation for Credit Counseling.

• Today's best savings rates

For their latest survey, they asked 2,200 people what they would do if their bank raised its checking account fees. The results:

• 51% would shop for another bank.
• 16% would complain to their bank.
• 16% admitted they'd probably never notice.
• 11% would grin and bear it.
• 6% would close their bank account and start using a prepaid card.

Based on a recent study by Harris (.pdf file), those of us who do switch banks will probably pick a small regional one instead of a big national one.

"When it comes to banking and investment brands, consumers seem to be leaning more toward local brands," says Jeni Lee Chapman, a vice president for Harris Interactive. "The feeling that larger financial companies let consumers down continues to weigh heavy on those brands. They will have to work hard to regain consumer trust."

In fact, when Harris asked 25,000 people to rank retail banks -- based on qualities like commitment, consumer connection, trust, and fair play -- none of the big names made the top five. The Brand of the Year award went to BBVA Compass Bank. The 10 best-rated banks were:

1. BBVA Compass Bank: 62.3 (out of 70).
2. Huntington National Bank: 57.1.
3. TD Bank: 56.
4. Fifth Third Bank: 55.8.
5. Bank of New York Mellon: 54.5.
6. PNC Bank: 53.5.
7. Chase Bank: 53.4.
8. Wells Fargo Bank: 52.9.
9. M&T Bank: 52.3.
10. HSBC Financial Services: 52.1.

If you're considering leaving your bank but aren't sure where to start, here's a three-step plan to moving on:

Find your new bank. Small local banks will probably offer better deals than the monster ones. Or better yet, don't use a bank at all. Use a credit union instead.

Credit unions are nonprofit and community-based, which is as close to the good old days as you're likely to find. Compared with giant banks, most credit unions pay higher interest on savings and charge less for loans. Their fees and interest rates on credit cards are often lower too -- and many still offer free checking.

• Find a better credit card

If you're worried about convenience, don't be. If the credit union you pick is a member of a shared branch network, you can access it at other credit unions, even those in Europe. In fact, you might even be able to access your account from full-service kiosks at the nearest 7-Eleven. See our story "7 reasons you should join a credit union this week."

If you're not eligible for a credit union through your job, use the Credit Union National Association's credit union locator to get a list of the nearest credit unions. Look for "community" as the type. That means you're probably eligible to join by virtue of where you live as opposed to belonging to some profession or group.

Then compare their rates and fees to those you're paying now. Like what you see? Find out if they're a member of a shared branch network by going to CUServiceCenter.com. If they are, that means you can go to any other shared branch credit union or ATM in the world to conduct business just as you would at your own. (Imagine banks doing that?)

Ease away from your old bank. Ask your new bank or credit union if it offers a "switch kit." That's a collection of the paperwork you'll need (which might be online) to redirect your direct deposits and inform companies that automatically take money out of your old account to start taking it from your new one.

More on Money Talks News and MSN Money:

• How to shop interest rates -- and why you should
• 8 tips to get credit when you don't have any
• Should you use your savings to pay off debt?
• In 2011: New and higher bank fees
• Study: 62% of banks fail to disclose fees
• Meet the woman the banks fear