4 Signs It’s Time to Switch Your Bank

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Sometimes, you just have to say goodbye — to your bank. Here are a few ways to tell you need a new financial institution. [[{“value”:”

A typical American has $8,000 in deposit bank accounts, according to research collected by The Motley Fool Ascent. This includes checking accounts, savings accounts, and more specialized accounts like CDs. Since it holds the money you use to live your life, being happy with your bank is important.

If your bank has been making you unhappy lately, fear not. It’s pretty easy to switch banks, and doing so can give you the chance to earn a higher interest rate on your savings, enjoy better customer service, and use cool mobile apps to manage your money. Here are four signs you need to change banks.

1. You’re paying fees

You should not have to pay money to keep your cash in a bank account — period. Unfortunately, some banks charge monthly maintenance fees just to keep the account open. They might also charge you a fee for overdrafting your account (which is surely when you need to be charged more money, right?), for not making enough transactions, or for using an out-of-network ATM.

Good news! Some banks don’t charge fees like these. You can expect to pay a fee for a wire transfer or a cashier’s check — but it’s likely you don’t use those services often enough to worry too much about those fees. But why pay money for the privilege of using a particular bank account when you don’t have to? Switch banks if yours charges these fees.

2. Customer service is no help

Sometimes you need help with your bank account. Maybe a check you deposited was never credited to your checking account, or you noticed a suspicious charge you didn’t make. Either way, it’s time to talk to a human. If your bank’s customer service department is hard to reach or staffed with folks who just aren’t great at problem solving, you’re likely to end up frustrated.

It’s worth exploring your options for banks that offer excellent customer service.

How can you find out about this? Read reviews of banks you’re considering, from both professionals and people just like you. And explore those banks’ websites to see how you can reach help — it might be via online chat, phone, or even via social media.

3. Your APY lags behind

As of this writing, you can find CDs, money market, and savings accounts paying upward of 4% on your saved cash. While we have just seen our first Federal Reserve benchmark interest rate cut in years, that rate is still quite a bit higher than it has been in a long time, so some banks (especially online ones) are still offering those higher APYs on savings products.

Meanwhile, more traditional brick-and-mortar banks pay such low rates on savings products that they’re hardly worth bothering with. Here’s a breakdown of what you can expect to earn with $5,000 in a high-yield savings account vs. a traditional savings account:

Keeping your $5,000 in a bank account that pays 4.00% APY means you earned $200 for doing nothing other than leaving the cash alone. Meanwhile, will that $0.50 earned from a traditional savings account even buy you a gumball these days?

If your current bank pays a ridiculously low APY on your savings, it’s time for a change.

4. The mobile technology is lacking

If you have accounts with a small local credit union or bank, you might not be privy to the best in financial technology. This is understandable — locally based institutions tend to put more energy and focus into offering excellent customer service and doing right by their communities, rather than catering to banking customers who live elsewhere.

That said, more and more of our lives are lived on the internet, and if you’re frustrated by a prehistoric mobile app (or perhaps none at all), switching banks could give you the opportunity to join the online banking revolution. Imagine checking your balance, paying bills, and transferring money while you’re on the go. Or depositing a paper check by snapping photos of it with your smartphone. If you’re being let down by your current bank’s technology offerings, change banks to one firmly planted in the 21st century.

It can be hard to say goodbye, but if your current bank is charging you fees, offers unhelpful customer service, or pays you pennies (or fractions of them) on your savings, it’s time to find a new bank. You have a world of options out there, so do some research and find one that works better for your money and your life.

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