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  • Writer's pictureDoctor Money

5 Reasons to Break Up With Your Bank

Updated: Mar 25, 2022

Banks play a key role in our financial health and planning. And if you are like most people, you probably have an account in the same bank in which you opened your first account. It is also probably the same bank your parents used. Another reason could be that it is the closest branch to your house. Well, that’s how most of us choose banks for our personal accounts. But the truth is it doesn’t really mean that it is the best option for you and your financial needs.

While switching banks isn’t really time-consuming and costly, breaking up with anyone, even your bank, can feel a little overwhelming. Whether it is a matter of growing comfortable with your current bank or indifferent to the level of service you are receiving, why not for once evaluate if it’s time to break up with your bank.

Break Up With Your Bank : 5 Reasons to do it this year

If you feel that your bank is not meeting your financial needs, it is probably time to consider different options. In any case, here are the top 5 reasons for a change of bank account!

Customer Service Is Bad

It often happens that your bank offers great solutions and experience at first but over time their customer service declines. Whether your bank has poor hours or impersonal service, if you feel that the customer service is not at par with your expectations, it is probably right to transfer the bank account to another bank.

A few aspects of customer service that you should consider while switching to a new option are as under:

  • Better customer service hours, including in-person and over the phone

  • Prompt response and resolution of problems

  • Friendly bank representatives that offer positive interactions at the bank

  • Adequate branch amenities, like branch hours, ATMs and and a wide range of competitive in-house services

Interest Rates are High

It is true that refinancing a loan especially with a new bank is a bit of work. So naturally you might want to stick to your current bank even if it is charging a high rate on your loan. But there is a way out of this plight. For instance, if you find that another bank is offering a better rate that can help you save a lot, you do not need to make the switch right away. Instead you must first ask your current bank if they can match the offer. If they do, you will save a lot of both money and trouble.

However, if your bank refuses to offer you a better deal, you must know it’s time to cut it loose. So while it might require your time to make the switch, the lower interest rate will translate into more money to your principal and a lot of savings over the duration of your loan. After all, a little time and effort is totally worth the savings you can make from it.

Your Bank Isn’t Offering the Products You Want

Sometimes there is nothing wrong with your current bank except for the fact that it is not offering the banking solutions that you want. In such a case, it might not be a bad idea to have another account in a new bank. For example, your bank allows you to have a checking account but another is offering a high-yield savings account. So you can either have both accounts in the new bank or you could use a combination of both.

When using a combination, make sure that you’re able to get a lower monthly maintenance fee on those accounts. Lastly, make sure that the accounts have the features that you are looking for. If you are having a hard time

understanding and managing your financial situation, you can borrow help from Personal Capital. The company’s online financial advising and personal wealth management services can help you stay on top of your financial goals. You can also learn to use a financial goal tracker to make sure everything is as per plan.

Break Up With Your Bank : Banking Fees are High

Nowadays it is easy to get a free checking account as almost half of non-interest checking accounts are free. But getting a good offer for one banking product is probably not a good idea to transfer your bank account to another bank.

However, if you are noticing that you are paying hundreds of dollars every year on overdraft, ATM charges, and more, it is time to make the switch. For example, out-of-network ATM fees are usually high. A good way to avoid it is to either open an account in a bank with ATMs near you or you can also go for a bank that reimburses ATM fees.

You Have to Consolidate Your Finances

Another reason for changing your bank account could be your need to consolidate your finances. Often consolidating all your financial solutions to one bank can provide you with other free services. It is obvious that the more services you use of a bank, the better will be deals they offer you.

For instance, with Wells Fargo, the more banking products you use with us, the more free, monthly services you can qualify for. Consolidating your financial products also helps you manage your debt, mortgage, and bills better.

Bottom Line

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Transferring a bank account to another bank has various perks. You get to have better interest rates, cut down fees and even have access to better banking solutions and service. But despite all those benefits, deposit accounts are usually sticky. In fact, most people are unwilling to make the switch.

So if you have any or all of the reasons to switch banks, it is important to consider a few things. Firstly, compare different options and consider if a switch will benefit you. Research thoroughly and figure out what matters the most to your financial needs.

Tackle your finances and financial needs better with the Doctor Money app. This smart option not only helps you manage your expenses, spending, and debt effectively but also lets you stay updated about your financial situation.

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