3 reasons to switch banks now
The days of traditional banking may be nearing an end. Inflation is still persistent (if cooler than it's been in recent months), and interest rates to battle it are still high. In this environment, Americans should take a closer look at where they keep their money and how they use their accounts. It may not make sense to keep your funds where they are if you can make more money and pay fewer fees by switching it to another institution.
In fact, there are multiple compelling reasons why savers may want to switch banks now. Start by exploring high-yield savings accounts here now to see how much more you could be earning.
3 reasons to switch banks now
Here are three reasons why savers should switch banks today.
Higher interest rates
The average interest rate on a regular savings account is 0.40%, according to the FDIC. With $5,000 in that type of account, you'd earn a paltry $20 after a full year. But by switching to a bank that offers high-yield savings accounts, you could earn a rate that's 12 times higher. With an account earning 4.85%, for example, that $5,000 deposit would grow to $5,243 over the same time frame.
That's $223 extra dollars you'd earn simply by switching from a bank offering regular savings accounts to one offering a high-yield one. And that's at the 4.85% rate. You might be able to earn even more by opening a CD with a different bank instead (online banks, in particular, offer significantly higher interest rates).
So don't let your savings go to waste. Switch banks now and start earning more interest. Explore your CD options here to see how much more you could be making.
Little to no fees
Building your savings is already challenging enough. You don't want to see that amount dwindle due to excessive fees and penalties. You can easily watch your bottom line deteriorate if your current bank charges for items like maintenance fees, minimum balance requirements and transfers. If you've already suffered from too many of these penalties, you're probably overdue to switch banks.
Many online banks have little to no fees. Because these banks are available online, they don't have the same overhead costs as banks with physical branches. Those savings are passed on to you in the form of higher interest rates and reduced (or no) fees. So, if you're tired of seeing red on your bank statements, consider switching banks now.
Bonuses and perks
As if higher interest rates and reduced fees aren't incentive enough, many banks entice you to switch to them by offering cash bonuses or extra perks for doing so. This can include direct deposits of $200 to $300 or more into your new account.
With a new account in a new bank, you also may be able to secure perks like discounts with brands and companies, financial tools and expert advice and improved rates on loans. In today's environment, banks are competing for your business, so be sure to shop around to find one that offers the best bonuses and perks for your needs.
The bottom line
Don't let your savings suffer from inertia. In today's high rate environment, you could earn substantially more interest simply by switching banks.
But it's not just the extra money that's great. By transferring your funds to a different institution, you could also eliminate excessive fees and penalties that previously ate away at your bottom line. And, depending on the bank you choose, you could secure a substantial cash bonus and other perks that could benefit your personal financial situation.
