It's easy to fall into certain routines in life and stick with them. You may, for example, be in the habit of stopping at a local coffee shop on the way to work to pick up your morning cup of joe. There may be a recently opened coffee shop in town getting rave reviews. But if you're used to your go-to shop, you may not even bother setting foot in the new one.
Similarly, once you get used to a certain bank, whether it's a physical branch or an online bank, it can be hard to make a switch to a new one. With a physical bank, there's the convenience of having the hours memorized and knowing when lines at the ATM tend to be shortest. With an online bank, there's the ease of knowing how to use the banking app and being comfortable with it.
But just because you're used to banking at the same institution doesn't mean you should stick with it. In fact, almost 50% of respondents to a recent survey by First Tech have considered switching from their current bank or credit union in the last two years. And if these factors apply to you, it may be time to make a move.
1. You're not getting a great interest rate on your savings
Savings accounts are paying pretty generously these days on the heels of the Federal Reserve's string of interest rate hikes. But whether interest rates are generally up or down, there's no reason to get paid less on your money when the option exists to get paid more.
Shop around and see what rates different banks are offering. If another bank can do significantly better, consider making a switch. You should also know that generally speaking, online banks tend to offer more competitive interest rates than physical banks, since they don't tend to have the same amount of overhead to cover. Many online banks are currently offering yields above 4% (as of December 2023).
2. You're being charged a lot of fees
Maybe your current bank is charging a monthly maintenance fee for your checking account. Or maybe you're charged a stop payment fee every time a check of yours gets lost in the mail and needs to be canceled.
You may find plenty of banks that don't charge these fees, so why continue to deal with them when there may be a better option? Instead, look at different banks and see which ones don't find every excuse under the sun to take your money.
3. Your bank has lousy customer service
Poor customer service can come in several forms. It could mean having to wait a long time to speak to someone, getting stuck with someone rude on the other end of the line, or being assisted by an incredibly kind soul who's utterly clueless about how to help you.