If you ever think about switching your bank, you should ask yourself a few questions first.
How satisfied are you with your old bank account? Did you experience something that you didn’t expect? If yes, it might be the ideal time to switch your bank.
But, you should consider many factors before switching banks. The factors include shifting, financial status, security preferences, banking habits, or vivid services, etc. The interest rates offered by your new bank account or their fee structure may also play a vital role.
Whatever the reason you consider, switching a bank is not easy. You should check the reliability and many other aspects of the new bank first. If you are not getting better banking service from the new bank, you shouldn’t switch. Making wrong banking decisions is not wise at all!
But when should you think about switching banks? Not to worry. There are a few clear signs that you should consider.
Ultimate signs to switch your bank account
Let’s discuss the clear signs that you should switch your bank account now!
1. Higher Interest Rates
Switch banks if your bank or credit union fails to offer higher interest rates on savings accounts. You should prefer CD accounts as an alternative. They give you higher interest rates compared to conventional savings accounts.
Loren Howard, Founder of Prime Plus Mortgages suggested that consumers should research well before switching banks. Check if your new bank allows you to lock in your interest rate. On top of that, the new bank should also provide higher rates and greater rewards. But you should always consider your financial needs and financial goals.
2. Higher Fees
Every year many banks and credit unions collect thousands as fees from their clients. In 2019, banks earned $15 billion from overdraft fees and low balance fees. The average cost of charges was between $30-35.
Paying monthly maintenance fees can be expensive for you. It may cost you $5 to $25 per month. Practically, you pay $60 to $300 per year to have a savings account. So, you should look for banks that offer free checking and savings accounts.
Niclas Schlopsna, Managing Consultant and CEO, spectup suggested that consumers must push their banks to reveal all details regarding fees and charges. If your current bank is charging excessive fees, then you should switch to a bank with lower fees.
3. Improved Customer Service
Close your old account if you are getting poor customer service from your existing bank. You should get prompt responses when you call your bank. Your bank must offer personalized solutions to all your banking related issues. The bank should maintain detailed information about your financial situation. You should find a financial institution that can help you with your future financial goals and how you manage your finances.
4. Loyalty and Rewards Program
If your checking account doesn't offer much, consider switching banks. Why use a dull, no-interest checking account when you can get cash back, interest, and more?
Relationship programs and loyalty programs might offer loan discounts, monthly charge reductions, or lower credit card rates. Some programs demand monthly balances. If so, it may not be worthwhile.
Consider moving to a bank that rewards you for banking with just one institution if there are no strings connected. FDIC insurance only covers up to $250,000. So, you should not put all your money in one bank.
5. More Account Options
Different people need distinct checking and savings account features. Look for a better bank account if your bank doesn't offer one and your present account doesn't fit your demands.
You should be able to choose between a conventional checking account for the basics, a rewards account for a more, and second chance checking to get back on track. A bank with several services makes it easier to manage your accounts. A full-service bank with good customer service can simplify your finances.
6. Increased ATM/Branch Access
Out-of-network ATMs charge $2, $3, or more. If your bank has few locations and few ATMs, it can be hard to access your money without a fee.
Many individuals are migrating to digital or internet banking, but you may prefer visiting your local branch office. According to the National Community Reinvestment Coalition, 9% of U.S. physical banking offices closed between 2017 and 2021. Some banks are expanding despite these numbers. If direct banking is necessary, consider switching banks that are opening branches. Eric Novinson, Founder of This Is Accounting Automation suggested that consumers must switch banks if their existing banks start closing branches in their neighborhood.
7. More Technically Secure Tools
Currently, people prefer banking online with a bank's mobile app. From paying checks, getting notifications on fraud or low balances, talking to customer service in the app, keeping track of your rewards, and many more things consumers can do with their mobile banking app. If you can't trust your bank's online services, like if it's hard to pay your bills or cash a check online, it's time to switch banks.
Try to find a bank that uses current technology to do things online. Check for banks that can give you:
- Speed while transferring funds, payments and deposits such as automatic payments, recurring payments, or depositing checks.
- Easy access to your account from anywhere, at any time.
- Personalization options so that you can handle your money easily. You should be able to keep tracking your account through features like personalized alerts, transaction history, and budgeting tools.
- Total security through biometric login, two-factor authentication, and real-time fraud tracking services.
8. You're Going To Open a Joint Account
You might be opening a joint account with your spouse, kids, or anyone else. In that case, you should check your current bank and its services. If it is not fulfilling your requirements, you can switch to a new joint bank account.
You and your joint account holder may like your existing bank. But you should check that you are getting all the necessary services, such as a direct deposit facility, automatic bill payments, automatic payment information, and many more.
9. You Are Going To Borrow a Loan
Check if your current bank or credit union offers loans at reasonable rates. If they don't, you may open an account with a new bank and apply for a loan. It will still be a good decision if you don't need a loan right now. It will help you in the future if you need to borrow money.
10. You're Moving to another location
If you're moving to a town or state that your present bank doesn't serve, you may switch banks and open a new account. Find a bank that will help you whenever needed and fulfill your banking requirements completely.
11. Your Bank is Being Acquired
It's normal for banks to merge. It is up to you whether to stick with your current bank or move. Normally, after the merger, the services, perks, and rewards change according to the shareholding bank's policies. So, you might not be getting the same services or benefits as earlier. Verify every aspect and decide what to do.
Conclusion
Keep an eye on your checking accounts, linked accounts, and transactions. If you find anything suspicious, contact your bank. If they can't give you satisfactory answers, don't hesitate to switch banks. You can choose from hundreds of financial institutions. You don't need a bank with poor mobile banking, low balance fees, fees on transfer funds, zero loyalty programs, etc. It might take some work to switch banks, but the benefits might be well worth it.
