5 Reasons to Switch Banks in June

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Switching banks can save you time and money. Here are five big reasons you should consider dumping your old bank in June. [[{“value”:”

Switching banks can be a major hassle, but so can sticking with a bank that you’re not happy with. Annoying fees, low interest rates on savings products, and clunky apps aren’t things anyone should waste their time on these days.

There are plenty of great banks out there that make managing your money a breeze and will even pay you for the privilege of holding your cash. Here are five reasons you should seriously consider breaking up with your old bank this June.

1. Higher APYs on savings accounts and CDs

Brick-and-mortar banks were long considered the industry standard, but over the last decade, they’ve been left in the dust by online banks with much higher annual percentage yields (APYs). Right now, the best savings accounts are offering close to 5.00%. That could earn you $500 in a year if you have a $10,000 initial balance. A brick-and-mortar CD with a 0.01% APY would only earn you $1 on that balance in a year.

CD rates are also high right now. The best 1-year CDs have rates just under 5.00%, while the best 5-year CDs have rates closer to 4.00% APY. These are some of the highest rates we’ve seen in years, and they could put hundreds or thousands of dollars in your pocket.

2. Fewer fees

Brick-and-mortar banks still charge monthly maintenance fees to their customers. Some of these can be as high as $30. To be fair, most institutions waive the fee if you meet certain criteria, but not everyone does. Summer brings enough expenses without paying the bank you’ve entrusted your savings to.

Switch to an online bank account and you won’t have to worry about paying monthly fees. Most online banks also do away with a number of other bank fees, like out-of-network ATM fees and even overdraft fees in some cases.

3. Better digital tools

Summer usually takes people out and about, and it’s not always easy to find time to run to your local bank or wrestle with its ancient online interface. You want to be able to quickly see what you have and get your money where it needs to go.

Online banks don’t have branches, so they put a strong emphasis on building a great digital experience for customers. Their apps are usually user-friendly and enable you to view your balance, transfer funds, and even deposit checks remotely.

4. Larger ATM networks

Some brick-and-mortar banks have large ATM networks. But if you work with a smaller regional bank, you could have trouble finding an in-network ATM to get cash from, especially when you’re traveling for the summer.

Online banks usually partner with a nationwide fee-free ATM network, like Allpoint. This doesn’t guarantee that there will be one where you’re going, but the odds are certainly better than they would be if you stuck with your regional bank.

5. Better perks

Brick-and-mortar banks spend a lot of money paying their employees and maintaining their branches. But online banks have lower overhead costs, so they can often offer their customers better deals. This includes lower fees and higher APYs, as mentioned above.

But it can also include things like the option to get your paycheck up to two days early or a bank account bonus for new customers. These factors shouldn’t be the sole reason you switch to a new bank, but they can be a tiebreaker if you’re torn between two accounts.

Whether you wind up switching or not, it’s worth comparing offers from a few other banks so you know what’s out there. If you decide to go ahead with it, remember to switch any automatic payments you have set up to your new account so you don’t accidentally fall behind on your bills.

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