4 Key Signs You Need To Change Your Banking Approach
Written by
Casey Bond
Edited by
Chris Cluff
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Having a bank you can rely on, especially during trying economic times, can make or break your bottom line. So if you feel like your current banking relationship leaves plenty to be desired, it might be time to change your approach.
From excessive fees to cumbersome processes, here are four signs it’s time to switch things up.
You’ve Had the Same Checking Account for Ages
People tend to stick with the same checking account for way too long, according to Andrew Latham, a certified financial planner and managing editor at SuperMoney. In fact, one recent survey put the average time we stick with the same checking account at 17 years, which Latham said is not too surprising when you consider the hassle attached to switching accounts.
“Banks know this, which is why they offer huge sign-up bonuses for new clients,” he said, “but not much love for existing clients.”
If you aren’t sure whether your current checking account is still serving your needs, Latham suggested asking yourself three important questions:
- Are you paying any monthly fees?
- Does your checking account require a high minimum balance?
- Do you have an account that doesn’t offer competitive interest rates on your balance or rewards on your purchases?
“If you answered yes to any of those questions, you probably should shop around for a new checking account,” he said.
You’re Getting Hit With Fees
“There can be obvious signs you may need to change your banking approach, and some you might not notice immediately,” said Oliver Manzano-Perez, an assistant vice president and branch manager with Addition Financial Credit Union.
One of those sneakier indicators is fees.
“Getting hit with unnecessary high fees such as overdraft fees, paper statement fees and annual fees on credit cards are red flags that can take a big bite out of your budget,” Manzano-Perez said.
Low fees are the most important feature for people opening new accounts, according to a new GOBankingRates survey.
Plenty of banks and credit unions offer fee-free accounts, which can save you hundreds of dollars a year. All you have to do is seek them out.
Your Banking Experience Feels Clunky
Reva Rao, chief lending officer at Travis Credit Union, said banking shouldn’t be difficult and frustrating.
“If your bank or credit union offers a complicated sign-up process for loans and other products, then it is not a world-class institution,” she said. “Financial Institutions are moving faster than ever to provide a streamlined experience, whether in the branch or digitally in order to remain relevant and competitive.”
In other words, the best financial institutions invest in customer experience, making it their No. 1 priority in all they do.
“This includes technology, operational experiences like account opening, servicing needs and customer/employee interactions,” Rao said.
If you dread having to deal with your bank because it takes too much time and creates too much frustration, know that there are better options out there.
You’re Spending Too Much Time at Physical Branches
If you were to sit down and write a list of your favorite places to visit, the bank probably wouldn’t make your top 20. Yet plenty of Americans regularly spend time standing in line at the bank to perform basic banking tasks.
But it doesn’t have to be this way.
“Before, it was important how far you lived from the closest financial hub, downtown or city; and, because of bank location scarcity, you were forced to ignore some drawbacks or inconveniences that your only bank offered,” said Ohan Kayikchyan, a CFP and founder of ohanthemoneydoctor.com.
He said the banking game has changed.
“Easier than ever before,” he said, “one can establish a banking relationship, open a checking or savings account, apply for a loan or transfer funds within a couple of minutes, without leaving the house.”
So, if you’ve been spending more time at your bank’s physical branch than you’d like, it might be time to look for a new one. The best banks and credit unions offer robust digital services like mobile check deposits, account transfers and online bill pay, with excellent security features to keep your data safe.
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