Why You Should Regularly Switch Banks

Managing your finances can feel overwhelming, especially when choosing the right bank. But once you settle on a bank, the average American holds onto the same checking account for around 17 years. While consistency and peace of mind are great, sticking with the same financial institution may come at a hidden cost. Other banks may offer perks better suited to your lifestyle, so it may be time to break out of your comfort zone and switch your bank to take advantage of new benefits.

Higher Annual Percentage Yields

An annual percentage yield (APY) is a fantastic way for customers to earn interest on their savings. There’s also virtually no risk involved, as your money remains ensured, and you can access your funds as soon as you need them. But if you’ve been stuck with the same bank for a while, chances are you’re not taking advantage of the most up-to-date, customer-friendly APY rates. Many banks currently offer APYs over 4%, yet only one in five Americans has an interest rate above 3%. Look into local banks offering high APY rates and make the switch — otherwise, you’re leaving free cash on the table.

Greater In-Person Convenience

Depending on where you live, certain bank chains operate more brick-and-mortar branches and ATMs for your convenience. That’s why it could be worth switching to a chain with plenty of locations, no matter where you live or travel. Some banks also offer extended hours for in-person banking, so it’s worth looking into banks that are open at times more convenient to your schedule.

Lower or No Fees

Many banks charge maintenance fees that eat away at your finances, but some waive those fees entirely. Many banks will agree to waive fees if you keep a minimum cash balance in your account. Also, if you’re currently paying ATM fees, plenty of banks will waive those and let you withdraw cash for no extra charge.

Better Online Features

Many people have shifted to exclusively banking online, and some banks offer better websites and apps than others. Some more popular online banking features include sending money virtually through Zelle and the ability to lock and unlock your credit and debit cards in the event of theft. If your bank offers limited online capabilities, opening a new account elsewhere might be worth offering more online benefits.

Sign-Up Bonuses

Banks are always looking for ways to attract new customers, and one of the most popular methods is with sign-up bonuses. These bonuses often mean hundreds of dollars right in your pocket, with Bank of America offering a $200 sign-up bonus, Chase giving new customers up to $300, and BMO offering $400 for new users. Then, there’s Citibank, which currently offers up to $2,500 in bonus cash as long as you meet their minimum deposit qualifications. In addition to cash, other sign-up bonuses include swag, gift cards, and other perks.

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