5 Warning Signs That It’s Time to Switch to a New Bank

At some point in life, most people have at least one major complaint about their bank. They might experience a long hold on a call, a glitch disrupts debit card usage, or a representative acts unkindly. Unless the issue escalates beyond expected norms, these reasons aren’t usually warning signs that it’s time to choose another bank and take steps to detach from your current one.

This guide outlines the top five warning signs that you need a new banking solution. Read on to learn why even one of these signs should prompt you to switch as soon as possible.

1- A Bad Fit With Products and Services

Although your bank might offer a lot of products and services that consumers often use, you might feel like it’s not providing you with everything you need. For example, you love the personal checking and savings options, but the business ones don’t offer enough to help you achieve your goals, such as a specific point of sale or reporting solution. Perhaps you need a bank that offers a low cash mode, safety net, or standby cash option that provides you with time or a financial buffer during an emergency.

2- Passive Income Rates Are Too Low

Many people rely on their savings and investment accounts for an extra income that they earn passively simply by trusting their bank with their money. You should always start shopping for a different financial institution to help with your passive income if the interest rate for a supposedly high-yield savings account is below 4%. Compare rates locally and online to find the best one.

3- The Bank Has High or Many Extra Fees

An excellent bank depends primarily on direct services instead of fees for revenue. Its administrators recognize that positive customer experiences in a community bring repeat business and word-of-mouth referrals over time. A bank shouldn’t be trusted with your money if it’s hitting you with high or too many fees, especially if it hides the fees or acts like fees are the “cost of doing business.” Better banks don’t charge fees for every little thing, such as account maintenance or statements. Plenty of banks also give their customers a break when using another bank’s ATM.

4- It’s Not Mobile or Nomad Friendly

If you’re a long-distance traveler, a digital nomad, or merely tech savvy, you might need a bank that provides more mobile services. For example, remote hometowns and small-to-medium-sized banks often take longer to catch up to modern changes. These banks rarely have the funds or partnerships needed to provide convenient mobile services. Even if you don’t travel outside of an area, you should consider a new bank if the current one doesn’t offer services for people with tight schedules who are often on the go, such as a night-deposit ATM, a user-friendly mobile app, a camera-based check scanning and deposit tool, or an on-site debit card printer.

5- The Customer Service Isn’t Good Enough

Lastly, customer service involves far more than face-to-face and telephone interactions. If you’re frustrated or unhappy more often than not with any aspect of customer service, it’s time to switch financial institutions. For example, your bank doesn’t have at least one local branch and ATM, great office hours, or understandable foreign call and email agents. Some banks invest in apps with tracking and other background processes that drain cell batteries when not in use or nonsensical online chatbots. Perhaps you’re tired of not having a personal banker who provides you with one-on-one service. Whatever the failure, any negative impression is definitely a good reason to switch banks.