Not everyone likes change, which could be one reason why the average American stays with the same bank for 17 years. Some people simply like the bank they’re with, but others might be hesitant to switch because of the work involved. After all, who wants to have to switch their direct deposit and all of their recurring payments to a new account or debit card?
But the truth is, you could be hurting your financial wellbeing by not evaluating other options. Switching to a new bank could be easier and more rewarding than you might think.
Let’s look at some of the reasons it might be time for you to move your money to a new bank account.
- You could be earning more interest. Who doesn’t want to earn more money? If your current bank account has a dismal interest rate, you’re missing out on a chance to grow your nest egg. Online banks typically offer higher interest rates than banks with physical branches. At Bank5 Connect for example, you can earn significantly more than the national average savings account yield. Our High-Interest Savings account offers 1.50% APY1, and you can earn up to 5.10% APY2 with our Jumbo Savings account. And it’s not just savings accounts that can grow your money. While most checking accounts don’t earn interest, there are interest-bearing options out there – you just have to know where to look! At Bank5 Connect for instance, you can earn 2.70% APY1 with a High-Interest Checking account.
- You want better customer service. If you’re having problems getting in touch with your bank, or you’re not happy with the support you’ve received from them, it might be time to look elsewhere. Look for a bank that doesn’t outsource its contact center to a foreign country, or make you jump through hoops to talk to an actual person. Video support, live chat, and weekend hours are all things that could make your life easier, so find a bank that offers them. Before you decide on a new bank, do some research to see what their customer reviews are like. Steer clear of banks that have a bad track record when it comes to customer service.
- You’re currently exceeding FDIC limits. Most people know that it’s important to use a bank that’s FDIC insured. But some may not realize that the FDIC has coverage limits. With FDIC insurance, your deposits are insured up to at least $250,000 at each FDIC-insured bank, but what if you have more than that in a single account? With CD rates so favorable over the past couple of years, it’s not uncommon for some savers to have substantial account balances. It’s important to ensure that all of your funds are insured. Rather than spread your money across various financial institutions, you might consider using a bank that offers protection above and beyond FDIC limits. At Bank5 Connect for example, all deposits are insured in full, through a combination of FDIC and DIF insurance.
- You want fewer bank fees. If your bank is charging you left and right for various fees, you should consider making a change. Look for a bank account that doesn’t have a monthly maintenance fee. You should also review the bank’s policy on ATM fees, especially if you won’t be close to a physical branch. At Bank5 Connect for example, we don’t charge our customers for using a foreign ATM, plus we rebate them if the other bank charges for use of their ATM, up to $15 per statement cycle. You should also review the bank’s policy on overdrafts. Check their fee schedule to see if you’ll be charged an overdraft fee or a non-sufficient funds fee for overdrawing your account. The fewer fees the bank charges, the better
The bottom line is there are a lot of great reasons to switch banks. While changing banks can certainly be a bit of a headache, it could be well worth it. Plus, with today’s ever-advancing technology, it’s possible for you automate some of the changes involved, depending on which bank you’re moving to. At Bank5 Connect for instance, we offer a Switch My Bank service which makes it easy to switch your direct deposit over to a new Bank5 Connect account. This service also allows you to seamlessly update your existing electronic payments so that they come out of your new bank account or debit card.
No matter what your reason is for considering a new bank, follow your gut. Having a bank you can trust, and that makes it easy for you to reach your financial goals, is so important. Despite the work involved with changing banks, you’ll likely be very happy once you’ve made the move.
1APY - Annual percentage yield. Rate may change after account is opened. Fees may reduce earnings. Minimum deposit of $10 required to open account. Minimum balance of $100 required to obtain APY. Rate effective 4/27/2024.
2APY - Annual Percentage yield. Rate may change after account is opened. Fees may reduce earnings. Minimum deposit of $25,000 required to open account. Minimum balance of $25,000 required to obtain APY. Rate effective 4/27/2024.