Switching banks can be a massive pain. The last time I went through the process, it took me several months to officially pull the funds out of one bank and deposit them into the accounts I had opened months prior at my new bank. This factor alone makes many people stay stuck with their current bank, complaining about the fees and customer service issues that wouldn't be a problem elsewhere.
If you think you might be getting the short end of the stick in your banking relationship, get out, and get out now. Here are a few indicators it might be time to say goodbye.
You’re being charged for things you can get free elsewhere.
My reason for leaving my last bank was simple: suddenly they wanted me to start paying monthly for the privilege of using my debit card. No thanks.
Plenty of banks now charge fees for anything from having a low balance in your checking account to doing a balance inquiry at an ATM – services which come free of charge at other banks.
The customer service is seriously lacking.
Is your bank helpful when it comes to making account changes or discussing your account or loan options? Are fee structures fully explained? Do you feel well taken care of when you need assistance?
If you answered no to any of these, you could likely find better customer service elsewhere.
Your interest rates are more dismal than most.
Savings account interest rates may be low across the board, but some are worse than others.
I switched all my savings accounts to an online bank in part because the interest rates were much higher than my brick and mortar bank. We’re talking .01% compared to 1%. Check out this list of banks with the highest rates.
The FDIC doesn’t back them.
FDIC is the organization which offers insurance on your deposits up to $250,000. This means that, in case of bank failure, you won’t have to worry about your hard-earned dollars disappearing overnight.
While most banks in the United States are covered by the FDIC, some smaller banks might not be. Make sure you check yours here.
It’s no longer convenient.
My friend recently told me he does all of his banking through the credit union which only operates out of the student center of the college he attended. For him, college was almost ten years ago and is now at least an hour from where he lives. Talk about inconvenient.
If you’re frequenting the ATM and paying fees for it because you can’t logistically go to a branch, cut the ties. Your life will be so much easier.
The mobile offerings aren’t keeping up with the times.
I am far more likely to reach for my phone to do my banking then take the time to go to a branch. So, for me, my bank’s app must include things like check deposit.
If your bank is falling behind on the mobile banking wave of the future, and this would be your preferred type of banking, it’s absolutely worth making the switch.
Are you thinking about breaking up with your bank? What’s your reasoning?