6 Major Signs You Need To Switch Banks
Switching banks can be a hassle, but it’s better to go through the inconvenience than to languish with a financial institution that isn’t meeting your needs or making you feel both comfortable and confident.
Find Out: How Much Money Do Americans Have in their Bank Accounts in 2024?
More: Use This Checklist To See Whether Your Bank Is Costing You a Lot of Money
But that all sounds a bit vague, doesn’t it? In other words, it would be more beneficial to know what real deal-breakers you should watch out for in a bank, and how to know when it’s time to move your money to another financial institution.
Here are six major signs you need to switch banks.
High or ‘Random’ Fees
Bryan Ghingold, of Pittsburgh, Pennsylvania, switched banks some years ago due to high and seemingly “random” fees.
“The bank was a ‘rich person’s’ bank,” Ghingold told GOBankingRates. “They had minimum balance fees, transfer fees, ATM fees, [etc.]. I was so flabbergasted. At the time, I had just moved to Los Angeles with nothing in my pocket but hopes and dreams. I didn’t have money to spare on fees.”
Ghingold’s choice to switch banks because of fees was a totally valid decision, and one that experts back.
“If you’re consistently facing high fees or charges for things like account maintenance, it may be time to move on,” said Christopher M. Naghibi, Esq., EVP, COO, First Foundation Bank, who went on to call out ATM fees, too.
“ATM withdrawals for example are astronomically high and there are plenty of banks that credit you even third-party ATM fees so you have access to your money anytime you see an ATM without being gouged,” Naghibi said.
A Lack of Products or Services
Which products and services you value depends on who you are and what you need/prefer, but if your current bank doesn’t offer the range of products or services you need (e.g., specific loan types, investment options or advanced online banking features), switching to a bank that does is a smart move.
“Just because one bank can’t or won’t lend to you doesn’t mean they all will have that challenge,” said Naghibi. “I am not a fan of a ‘split banking relationship,’ so plan to keep your deposits with the bank that meets your needs and don’t over-complicate your life. Also, if you are a business owner and need a loan, most banks will require your ‘primary banking relationship’ anyway.”
Lacking or Subpar Digital Presence and Engagement
We live in an interconnected, fast-paced and increasingly technology-centric world. Your bank needs to honor this by offering excellent digital experiences.
“If their online banking and mobile app functionalities are lacking, it could be inconvenient for your banking needs,” Naghibi said.
If this is the case, it’s probably time to switch banks.
Non-Competitive Interest Rates
We’re living in a time of historically high interest rates, and many banks (especially online institutions) are offering exceptionally high APYs on select accounts.
At the same time, it’s worthwhile to note: banks are competing to give you lower interest rates on loans. Make sure your bank is in this crowd.
“If your bank isn’t offering competitive interest rates on savings, loans or credit cards, it’s worth shopping around,” said Geri Hopkins, COO at Skyla Federal Credit Union.
Data Security Concerns
Fraud is on the rise and it’s critical that your bank is doing everything to keep you — and your data — safe.
“With the rise of digital banking, data security is crucial,” Hopkins said. “If your financial institution has suffered serious data breaches or doesn’t prioritize security, it’s time to switch.”
Poor Customer Service
Your bank needs your money, and for that alone, they should treat you like the gold you are.
“The bane of my banking existence is poor customer service,” said Naghibi. “I once had all of my family’s trust accounts with a big bank whose name shall not be mentioned. I was so annoyed […] with the lack of customer service that I took it all out and found someplace that treated me like more than a number. It was a pain to transfer, but my life has been so much easier since.
“If you’re consistently experiencing poor customer service, such as long wait times for support, unhelpful staff, unnecessarily complicated internal policies or unresolved issues, it could be time to switch,” Naghibi said.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Major Signs You Need To Switch Banks
