Answer: Unless your credit scores are excellent (typically FICO credit scores of 740 or above), these days you probably shouldn’t waste your time trying to negotiate a lower rate with your current issuers.

People with great credit have some leverage, because they can easily transfer their balances to competitors offering low rates. People with only “decent” credit usually can’t qualify for those offers.

You may be able to get a better deal by transferring your balance to a three-year, fixed-rate personal loan. Check with your local credit union first, as these member-owned organizations often have better rates and terms.

Which is what JPMorgan Chase did in an interview with American Banker about its plans to impose new checking account fees.

“We don’t want to raise fees on our customers,” a spokesman for JPMorgan Chase said Wednesday, “but unfortunately regulation is forcing us to do it, and as a result some customers may end up unbanked.” He declined to discuss how many customers would be subject to a monthly fee as a result of the changes.

The background: banks’ fee income soared in recent years as the financial institutions quietly changed their policies on over-limit transactions, particularly those made with debit cards. Instead of declining a transaction if you didn’t have the money in your account, the banks started approving them so they could charge you $30 to $35 a pop. Many banks also reordered transactions before processing them to ensure the largest ones would go through first, draining the account more quickly so subsequent transactions could generate more fees.

Banks typically imposed these “bounce protection” or “courtesy overdraft” program without asking customers’ permission, and some banks wouldn’t allow you to turn them off.

Regulators finally stepped in, requiring banks to get customers’ permission to enroll them in bounce protection. To no one’s surprise, most customers declined.

But banks had gotten hooked on the easy money, and now they’re scrambling to find other ways to ding us to get that cash flow rolling again. The bank spokesman is repeated the industry mantra that the devil (regulators) are making them do it, and that poor people will suffer.

Low-income people bore the brunt of the bounce protection programs, since their accounts were more likely to be running on fumes. That’s why many have sworn off banks. Some 9 million households in the U.S. are unbanked, including nearly 20% of those making $30,000 or less.

But FDIC Chairman Sheila Bair is convinced banks can find a way to profitably offer low-cost checking accounts by making most transactions electronic. On Jan. 1 the FDIC launched a pilot program at nine banks to test the such accounts’ feasibility.

In any case, banks have plenty of other options beyond raising their prices. They can run themselves more efficiently, build more relationships with the customers, and (heaven forbid) maybe even trim those year-end bonuses a tad.

To protect yourself from this latest round of fees, you should:

• Closely monitor your account and any communications from your bank. Many banks large and small are planning to impose monthly fees on once-free accounts.
• See if you can (or want to) change your banking behavior to avoid the fees. If you have a spare $5,000 lying around, for example, you can avoid the new fees on some accounts at Bank of America by sticking that money in a savings account linked to your checking. Your interest rate will be dismal, but rates at online banks aren’t much better, so that money may be better off sitting at BofA and helping you avoid the $15 monthly maintenance fee for your checking account (which would be like getting a 3%+ return on your money).
• If you can’t or don’t want to meet the criteria necessary to waive fees, ditch your bank. Many credit unions still offer free checking. You can find which ones you might be able to join here.

She’s already required to save $1 of her $7 allowance each week. Mandatory savings have been part of her allowance since she started getting one four years ago. With the new savings account, we made a bargain that if she saves any more than $1 week, we’ll match it dollar for dollar. So if she saves $2, we’ll kick in an extra buck.

Then, each December, she’ll be allowed to withdraw half of her savings to spend. The other half has to be left alone to grow.

The cool thing is that our credit union pays a 7% return on the first $500 in a savings account. It’s a lot easier to show the value of savings when you have an actual interest payment to show, instead of the three cents a month or so she’d be earning at a regular bank.

We think our arrangement will strike the right balance between teaching delayed gratification and making savings fun. We hope the incentive will encourage her to save more, while giving her access to the funds once a year will reassure her we’re not locking away her savings forever. (Although “hands off” savings helps me sleep better at night, most kids see it as confiscating their money.)

How was saving encouraged in your family, if it was? What are you trying with your kids to make savings a habit?

Answer: First, scrutinize every mailing or email you get from your bank to learn about any changes that might be coming to your account. Many banks will still allow you to avoid fees by keeping a minimum balance, arranging a direct deposit or making a certain number of debit card transactions. If you can’t modify your banking habits to avoid the fees, consider switching your account to a credit union. These member-owned institutions are likely to continue offer free checking or to at least make it easier to qualify. You can search for credit unions for which you might be eligible at www.findacreditunion.com.

Answer: You may not have to give up anything, and you may gain a few things, depending on how you bank.

Credit unions are member-owned, which means they don’t have to worry about making profits for shareholders. That translates into better interest rates and lower fees than banks. Many people discover credit unions when they’re looking for auto financing or personal loans, drawn by credit unions’ typically lower rates compared with those charged by banks.

You may find banking with credit unions cheaper in other ways. Most have very low minimum balance requirements for free checking and savings accounts. Many credit unions are also members of the Co-Op Network, which offers fee-free access to more than 28,000 ATMs nationwide, far more than any bank.

That doesn’t mean they’re right for everyone. While most credit unions offer online banking and free bill payment services, for example, their other services may vary. Some offer real estate loans, for example, while others don’t.

Before you switch, you’d be smart to review your transactions over the past few months and think about what loans or services you’re likely to need in the future. Make a list and ask your credit union what it provides and what fees it charges.

If you decide to move, open your new accounts first and set up online access so you can monitor your transactions. Then move any direct deposits you have, such as your paychecks. Change any automatic debits and recurring payments so they come out of your new account. Keep open your old accounts until all payments have cleared, then shut those down.

To find a credit union you can join, visit www.creditunionfinder.com

As promised, here’s what to do after you’ve made the decision to jump ship.

1. Make a list. Review your transactions for the last few months and list all the automatic and recurring payments being made out of your current account. Don’t forget to include any automatic payments that occur less often, such as quarterly, biannual or annual payments.
2. Open your new accounts. If you open your accounts with a check, there will typically be a holding period before you can access your funds. Also, ask about getting true overdraft protection, which links your checking account to a savings account, credit card or line of credit.
3. Set up online access. Familiarize yourself with the new bank’s system and add the accounts to any personal finance software or site you use (Quicken, Mint, Yodlee, etc.) If you use online bill pay, you can start adding payees to the new bank’s system.
4. Switch any direct deposits. You’ll typically need to contact your employer’s human resources department and fill out a form with your new bank’s routing number and your account number.
5. Transfer any automatic or recurring payments. If you were making payments from your old bank’s bill pay system, set up the payments on the new bank’s system. If the automatic debits are coming from billers, contact those companies and give them your new bank’s information. (You may be able to do this on the billing companies’ Web sites.)
6. Monitor both accounts for a few weeks. Check in frequently to both banks to catch any messed-up or missing payments.
7. Shut down the old accounts. Contact your old bank and ask how it wants you to proceed. Ask that any remaining balances in your accounts be mailed to you or transferred to the new bank. Cut up debit cards and checks associated with the old account.

In today’s post, I’ll cover how to shop for a new bank or credit union. In this post (click HERE), I write about ways to make the switch as painless as possible.

The best fit for you will depend on how you use banking services and your priorities.

Start by looking at your transactions for the last three months or so. What was the lowest balance in your checking and savings accounts over that time? If you constantly run on fumes or close to it, you’ll want accounts with low minimum balance requirements or that waive minimums when you arrange direct deposit of your paycheck. (My credit union requires a $1 minimum for its basic checking account. Big banks may require a $500 to $1,000 minimum balance to avoid a fee unless you have direct deposit.)

Cast a wide net. Don’t limit your search to name-brand banks. Community banks and credit unions can be good options as well. Move Your Money can help you find top-rated community banks by ZIP code, while Find a Credit Union and CULookup offer similar services for CUs. Community banks are covered by the FDIC insurance that applies to bigger banks, and most credit unions are covered by the National Credit Union Share Insurance Fund, which like the FDIC is backed by the full faith and credit of the U.S. government.

Check your target institution’s Web site for the closest branches and ATMs. You can always get extra cash at a grocery store with a debit card, but most people like to have a fee-free ATM and a branch or two close to where they live or work. Credit unions usually belong to the Co-Op Network, giving you access to more than 28,000 fee-free ATMs across the country.

Also check interest rates for checking and savings account. Getting any interest on your checking at big banks typically requires a huge balance ($10,000 and up), but some community banks offer decent rates on so-called rewards checking accounts. Get all the details before you sign up, since a certain number of transactions and a minimum balance are typically required.

Savings account rates vary as well. My big-bank savings account offers a fraction of 1%, while my credit union currently offers a 7% return on the first $500 deposited.

Test their customer service. Don’t just check them out on the Web. Call and talk to a human to ask questions, so you can see how you’re treated. Then, before you commit, visit a branch and ask some of the same questions again in person. What an institution promises and what it actually delivers in customer service can be worlds apart, and there’s nothing like face-to-face contact to help you decide.

What to ask (and make sure to write down the answers so you can compare your options):

• What are the minimum balance requirements (if any) for each account? What monthly fee will I pay if my account goes below the minimum or if there is no fee-free minimum?
• Do you reimburse for transactions made at other banks’ ATMs? If so, how many fee-free transactions can I make each month?
• Do you charge to talk to a teller? If so, how much?
• Do you offer online bill pay for free? Is there a limit on the number of bills I can pay?
• Do you charge for paper statements? If so, how much?
• What do you charge for transfers to outside accounts?
• Do you offer overdraft protection? How much does it cost? (What you want is true overdraft, which links your checking account to a savings account, line of credit or credit card in case a transaction exceeds your available balance. Don’t settle for “courtesy overdraft” or “bounce protection,” which can cost you a fortune in bounced-transaction fees.)
• If you use Quicken, QuickBooks or other personal finance software, ask about fees for those services.
• If you frequently send money out of the country, find out how much is charged for that service.

Next up: How to say goodbye.

Now the Huffington Post’s Arianna Huffington has started a campaign to get people to ditch their banks in favor of credit unions and community banks. The point isn’t just to get better interest rates and treatment; it’s to protest egregious bank behavior.

Here’s how commentator Bill Maher put it in a recent column “Stop the Abuse: It’s Time to Break Up With Your Big Bank“:

That’s right, I’m talking to all of you that keep doing your banking at the giant, too big to fail, Wall Street banks that brought our economy to the brink of disaster, were rescued by trillions of dollars of our taxpayer money, then paid us back by using that money to hire lobbyists to convince our lawmakers in Washington to kill financial reform.

They took our money… but cut back on lending.

They took our money… and made record profits — and paid themselves record bonuses.

They took our money… then returned to the risky behavior that led to the worst financial crisis since the Great Depression, with record unemployment, bankruptcies, and foreclosures.

They took our money… but kept on with all the greedy, abusive, ruthless, and cold-blooded practices that have earned them untold billions of dollars a year — year after year after year.

If the desire to poke big banks in the eye is what finally gets you to consider your local credit union or community bank, then I’m all for it. Learn more at MoveYourMoney.info.

This didn’t work for my daughter. She has been an authorized user for a few years and is trying to get her own credit card and can’t, because she has no credit reports or credit scores.

It is a shame that the honest people suffer for what has happened recently in the financial world and now young people who will pay their bills don’t even have a chance! She even has her own checking account and that doesn’t help. She is now 19.

Any advice on where to go or what to do?

Answer: The financial crisis and credit crunch have made it tougher for many people to get credit, but your daughter still has plenty of options.

You first should call the credit card company and ask if it will export your good history with the credit card to your daughter’s credit bureau files. Not all issuers will do so, but it doesn’t hurt to ask. If this issuer won’t export the data, check with your other card issuers to see if they will.

If that doesn’t work, your daughter can get a secured credit card to help build her credit history. Borrowers make a deposit with the issuing bank of $200 to $1,000 and get a card with that much credit. She can find secured card offers at www.cardratings.com and www.creditcards.com.

She should use no more than 30% of her credit limit at any given time and pay off her balances in full and on time every month.

She also might consider getting a personal loan to help build her credit. Credit unions tend to be more flexible about helping their members get started with loans, so encourage her to look into joining one of those if she’s not already a member. (To find credit unions to join, visit www.joinacu.org.)

Answer: The fact you could get any issuer to lower your rate in today’s environment indicates you have very high credit scores. People with less stellar credit have reported having their rates raised or credit limits lowered when they tried asking for rate concessions.

You could investigate the low-rate balance-transfer offers at sites such as CardRatings .com, CreditCards.com and the finance forum at FatWallet .com. Be aware that balance-transfer offers are getting less generous, however, so there’s no guarantee you’ll find another low rate when the current deal expires. You also need to factor in fees, because many balance-transfer deals add 3% to 4% to your balance.

Another option is to pay off your credit card debt with a three-year personal loan from your credit union or a social lending site such as Prosper or Lending Club. The rate you pay may be somewhat higher than you’re paying now, but it will be fixed, which means you won’t face a massive rate hike down the road — something that’s always a possibility with credit cards.