According to research released today by TD Bank, Hispanics are less concerned with setting up a new bank account (21 percent) prior to moving to a new location than the general market (30 percent). The study, an extension of the TD Bank Checking Experience Index, surveyed more than 1,100 Americans, including 150 Hispanics.
A report from the National Association of Hispanic Real Estate Professionals shows that Hispanics are the fastest growing group of first-time homebuyers. With so many Hispanics entering homeownership, it’s important they are fully prepared for the move. TD Bank’s Survey has found that Hispanics, as compared to the general market, do not factor banking into their move and could wind up paying bank fees as a result.
“The TD Bank Survey demonstrates that banking is not a priority for Hispanics when they are deciding to relocate,” explains Felipe Basulto, Retail Market Manager, TD Bank. “While over two thirds of Hispanics do not open a new account when they move, we know from our research that the best way to avoid fees – which is a priority for Latinos – is to select a bank that offers convenient and local access to store locations and ATMs.”
Other Key Facts
· The top five reasons Hispanics move to a new home include a bigger house/more space (30 percent), a different neighborhood (25 percent), being closer to family and friends (18 percent), personal employment/job (17 percent) and growing or shrinking family (13 percent).
· Of those who opened a new bank account, the majority (66 percent) of Hispanics said that they set up a new bank account one month after they moved (21 percent set up prior to moving).
· Four in ten (41%) of Hispanics have a bank within 3 miles from home followed by a quarter (25 percent) who said within 4-5 miles.
· Only 28 percent of Hispanics opened a new checking account after they moved and of those that did select a new primary bank, 47 percent did so to avoid fees and charges.
Switching to a New Bank
The survey shows that while the majority of Hispanic respondents (72 percent) did not set up a new primary account after they moved avoiding banking fees is a concern for them. Below are helpful tips for setting up a new account to help consumers avoid fees:
· Shop around for a bank that provides extended hours and online banking options that fit your lifestyle and schedule.
· Find a bank that is conveniently located near your home and/or work; and offers a large network of ATMs to allow for no cost transactions. It may make sense to look into institutions that offer checking accounts that reimburse non-bank ATM fees, such as TD Bank’s Relationship Checking account.
· To ensure a smooth transition when switching accounts, make a list of all direct deposits and automatic payments that will be transferred to your new account.
· You can set up new direct deposits by providing your new bank’s routing number and checking account number to your employer, Social Security, VA, and any other direct deposit payers, and some banks, like TD Bank, will help you with this process.
· Switch your automatic and online payments/withdrawals by contacting the payees and providing your new routing number and checking account number. This could include utility companies, credit cards, car loans, cable/satellite services, and cell phones.