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5 signs it’s time to switch banks

You have so many banking options, so make sure yours offers the strongest perks.

It can be a pain to switch banks. You probably have your direct deposit, bill pay and everything else financially tied to your current bank account. While it may be a hassle, switching banks can yield higher savings, fewer monthly fees and a better banking experience overall. Here are five signs it’s time to look at other banking options.

1. You’re still being charged monthly maintenance fees

There are way too many banks that offer free checking and free savings accounts for you to still be paying monthly maintenance fees. If you’re paying monthly fees, it’s likely $5 to $25 per month, which means you’re paying around $60 to $300 per year just to have a bank account. It’s simply wasted money you don’t need to spend when free options are up for grabs.

2. Your savings APY is under 0.46%

The national average rate for a savings account is sitting at 0.46% APY, so if your savings account is at or below that, it’s time to open a high-yield savings account. There are many savings accounts with APYs as high as 5% — often with no monthly fees — that there’s no reason to stick with a poor APY.

Graphic source

3. Your bank doesn’t offer loyalty programs

If you’ve been with your bank for years and nothing has changed, it’s time to start looking for a bank that rewards loyal customers. Banks can offer relationship programs, which are loyalty programs that offer loan discounts, monthly fee reductions or better rates on credit cards. Some of these programs might require you to maintain a monthly balance. If that’s the case, then it might not be worth it.

But if there are no strings attached and you prefer to bank with just one institution, consider switching to a bank that rewards you for it. Just make sure you’re not tying up all your money at one bank, since most only protect you up to $250,000 through FDIC insurance.

4. Your credit card doesn’t have perks

Credit cards are great for emergencies or large purchases, but that’s not all they can offer. Some credit cards offer cashback rewards, travel perks, airline miles, credit-building and more. If you’re going to have a credit card — or multiple cards — it’s a good idea to find one that offers tangible perks.

5. Your bank’s mobile app stinks

Mobile and online banking have been staples for years, and if your bank still has an outdated or buggy online banking experience, there’s no excuse. Good mobile banking apps can offer mobile check deposits, text alerts for fraud or low balances, in-app chat support, reward tracking and so much more. If you can’t rely on your bank’s online portals, that’s a huge inconvenience — and you can avoid it by switching to a better bank.

Bottom line

There are hundreds of banks and credit unions to choose from, and you don’t have to stick around with a bank that charges exorbitant fees, lacks loyalty programs or has a poor online banking experience. Switching banks can take some effort, but the payoff could be well worth it.

About the Author

Bethany Hickey is a personal finance writer at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance and AOL. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine.

This article originally appeared on Finder.com and was syndicated by MediaFeed.org.

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