6 Key Signs You Should Break Up With Your Bank

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Switching banks can be a hassle, but it’s better to go through the inconvenience than to languish with one that isn’t meeting your needs or making you feel both comfortable and confident. The right financial institution should make you feel like your money is working for you.

To put it more simply, it’s 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 that will present you with higher APYs, better customer service or just more convenient access to your funds. Here are six key signs you need to switch banks.

High or ‘Random’ Fees

Many people are tempted to switch banks when they discover sneakily high and seemingly random fees on their monthly statements. Many standard fees include minimum balance fees, transfer fees, ATM fees, maintenance fees, overdraft fees and more.

You should know that depending on the bank, many of these fees are waivable or not charged in the fitst place, so if you are spending more than you are saving or earning in interest, it may be best to break up with your current bank.

Lack of Products or Services 

The banking products and services you value depends on who you are and what you need or prefer, but if your current bank doesn’t offer the range you want (e.g., specific loan types, investment options or advanced online banking features), switching to a bank that does is a smart move.

Just because your current bank won’t grant you a personal loan doesn’t necessarily mean others won’t. In this case, it may be a good idea to move your funds to the financial institution that better serves YOU. 

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 your bank’s website or mobile app isn’t user-friendly or functionalities are lacking, it could be a major hindrance to your daily banking. Convenience goes a long way in which bank you choose, so keep this in mind if yours is making your daily tasks harder than they should be.

Non-Competitive Interest Rates

We’re living in a time of high interest rate options, and many banks (especially online institutions) are offering exceptionally high APYs on select accounts. This is one perk of the digital age, as online banks don’t have the same overhead as brick-and-mortars so they can pay the savings forward to their customers. 

At the same time, it’s worthwhile to note that banks are competing to give you lower interest rates on loans. Make sure your bank is in this crowd.

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.

Essentially, as with any of your possessions, if your banking and personal information isn’t safe, you should put it in a better-protected place. Banks that have suffered serious data breaches or don’t prioritize security could be a big red flag for your finances. 

Poor Customer Service 

Banks needs your money, and for that alone, they should treat you like the gold you are and not like you are indebted to them. Poor customer service is one of the biggest reasons you should break up with your bank — you deserve to get treated like a person and not the numbers in your account. 

Transfers can be a pain, but sometimes it is worth it. If you’re consistently experiencing poor customer service — such as long wait times for support, unhelpful staff, unnecessarily complicated internal policies or unresolved issues — making the switch to a new bank sounds like a better money move.

Nicole Spector contributed to the reporting for this article.

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