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We’re pretty loyal to our bank. Once you open a bank account, you tend to stick with it for the long haul. The average American says they’ve used the same primary checking account for over 14 years.
It’s hard to imagine ending a long relationship. But sometimes, it’s better to break up and move on. There are plenty of reasons to consider switching to a new bank. Here’s when it makes the most sense.
#1. You’re unhappy with your current services
Any good relationship is built on trust and strong communication. The same goes for you and your bank.
How’s the customer service at your current bank? Do they offer all the services you need?
If you feel it’s hard to get help from your bank when you need it, that’s a good reason to look for a new bank. This includes a lack of responsiveness, unhelpful staff, or disregard for customer satisfaction.
Local banks or credit unions often offer a more personalized approach to their services and have more time to dedicate to good customer service.
Maybe your current bank doesn’t offer the services you need. Banks with reduced branch locations, limited hours of operation, or an outdated online banking system make accessing or managing your account difficult.
If you want to keep your accounts in one place, consider a large bank, like Chase or Bank of America, which offers a variety of products and services. If you’re looking for a specific type of account, like a high-yield account, consider an online bank, which typically offers more competitive rates.
#2. You’re paying high fees
Many banks charge some sort of fee for their services, but some are unnecessary or exorbitantly expensive. One in four Americans with a checking account is paying monthly fees, an average of $24 monthly.
Every dollar you pay in fees is a dollar less in your checking or savings account, so it’s wise to look for a new bank if you’re getting hammered by fees.
Some standard fees that banks charge include:
- Monthly account fees
- Out-of-network ATM fees
- Overdraft fees
- Paper statement fees
- Foreign transaction fees
Some banks will waive monthly fees if you hit specific minimum balance requirements. Others will offer other ways to avoid maintenance fees, such as setting up direct deposits.
If you want a fee-free bank, consider an online bank, such as Ally Bank, which has no fees and no minimum balance requirement. Here are other free bank options.
If ATM fees are the problem, look for a bank with an extensive network of branches or ATMs. These banks will reimburse you for ATM fees that other banks charge.
#3. You want better interest rates
Interest rates are important for both savers and borrowers. Savers want accounts with high interest rates so their savings can grow quickly. Borrowers want loans with low rates so they don’t have to pay much interest on their debts.
If you’re looking for good interest rates on savings, look for banks that offer high-yield savings accounts. While the average savings account pays just 0.53% APY, some banks offer high-yield savings accounts that pay rates over 4% as of July 31.
If you’re looking for low-cost loans, compare multiple banks. Different banks specialize in various types of loans. Local credit unions and smaller banks often offer more affordable loan options.
#4. You’re moving
If you’re moving, you might need to switch banks. This is especially true if you currently bank with a local or regional bank.
For example, if you live in Florida and have an account with a local bank, you probably won’t find many branches or ATMs if you move to Minnesota. Finding a bank with locations in your new area is a good idea to maintain access to branches and ATMs. This is less of an issue with an online bank or national bank.
#5. You want more rewards & perks
Some banks offer perks or other rewards for loyal customers. Switching makes sense if you find a bank that offers a rewards program that could work for you.
These perks can come in many forms, like extra cash back on credit cards, interest rate discounts, waived fees for certain services, and more.
Depending on the bank and rewards program, customers can get a host of benefits, including:
- Credit card rewards
- Savings account interest rate boost
- Fee waivers for select banking services
- Mortgage origination fee credits
- Interest rate discounts on home equity and auto loans
- A reduction in foreign currency exchange fees
- ATM fee waivers
As you increase your balance at the bank, you’ll receive more perks. Different banks have different reward and perk programs, so compare bank options to find the one that offers you the most value.
Bottom line
Changing your bank can be difficult, especially if you’ve used the same checking account for years. But it can be worth the effort in many cases. Switching banks can help you save money, access better services, or provide other perks.
Before switching, consider both your current and future financial needs. Look for banks that can help you meet those needs and compare their offerings to find the bank that is the best fit for you.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.