Switching Banks

ATM

Switching Banks

Written by: Annette Harris, May 8, 2021

Have you ever looked at your bank statement and realized that you earned a whopping one dollar in interest from your bank? Or are you charged ATM fees, overdraft fees, or fees for not having $500 in your checking account? These fees might be a sign that it’s time to reevaluate who you bank with.


I recently switched my banking institution when I realized that I was receiving minimal benefits from the funds that were in my savings account. I took steps to research other banks and the savings account benefits they could provide to me. Researching multiple banks allowed me to compare the pluses and minuses of each institution's offerings. Typically, the bank is not giving you money, but you are giving the bank your money to hold, protect, and ultimately increase it.


See: How one simple decision could save you $750 a year.


Reasons People Look for New Banks


There are other reasons you may be considering a new bank:


  • The bank does not align with your financial goals

  • The bank does not have a local branch in your area

  • Customer service and financial guidance is non-existent


Finding a bank that you are comfortable with and have ease of access to, via the internet or locally, can create a sense of solace when it comes to protecting and growing your money.


How to Find a Better Bank


When looking for a better bank you should evaluate the fees associated with the account you are trying to open and if the bank can grow with you as your financial situation changes.


See my contributions to Bob Haegele’s 10 Steps to Finding A Better Bank article on Yahoo Finance.


I recommended asking the following questions:

  • Is a direct deposit required?

  • Are there ATM fees and if so, do you offer ATM rebates monthly?

  • Is a savings account required to have a checking account?

  • Is there a minimum balance required for opening and maintaining the account without fees?


Video: How Banks Actually Make Money


Did you see that if you are required to keep a minimum balance of $500 in your account that you may be charged fees that penalize you for not having the available funds? Understanding the minimum balances required and any other benefits the bank has to offer can ensure an informed banking relationship is created.


Other Banking Products


The basic checking and savings account is what most consumers start with. However, when looking for a good bank you should evaluate other investment products available at the bank. Does the bank only offer basic checking and savings, or does it offer products like Certificates of Deposit or high yield savings accounts? Banks that offer expanded options can offer guidance as your financial situation changes and eliminates the need for you to switch banks in the future.