When to Switch Banks: 4 Key Financial Indicators

It may be time to make a move and put your money elsewhere.

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Many people aim to open a bank account and stay with the same financial institution for years. But if your bank isn't meeting your needs, then it may be time for a change. Here are four key factors that should prompt you to look into moving your money from one bank to another.

1. You're earning practically nothing on your savings

These days, savings accounts are paying very little interest across the board. The same holds true for CDs. Still, different banks offer different interest rates, and if yours is paying considerably less than other banks, it may be time to make a move.

Granted, if you're talking about a difference between 0.50% annual interest and 0.60%, it may not be worth switching if you like your bank and are used to it. If you have $10,000 in savings, the difference between those two interest rates is $10 a year. But for a more sizable interest rate gap, a move may be worthwhile.

2. All of your local branches have closed

A lot of businesses have been forced to shutter due to labor shortages, and that includes branches of well-known banks. If you're suddenly left without a convenient local branch due to closures, then it may be time to find a new place to do your banking. After all, the last thing you want is to have to walk miles just to access an ATM.

3. You're no longer commuting and therefore don't have a convenient branch to access

It may be the case that you chose a bank based on its proximity to your office. That may have made sense prior to the pandemic. But if you're now working remotely on a long-term basis and don't have a bank branch near your home, then it's probably time to make a change.

4. You're tired of waiting on hold every time you call customer service

Some people do their banking online rather than at a physical bank. Often, online banks are able to offer higher interest rates than brick and mortar banks because they don't have to spend money on things like rent and utilities. As such, they can pass some of that savings onto their customers.

However, if you're going to bank online, it's really important you have access to great customer service, since you can't just pop over to a branch and speak to someone in person. If you're finding that customer service has gotten ridiculously hard to reach, then it may be time for a switch.

With that said, as mentioned, a lot of businesses are short-staffed these days. If you're having a harder time getting a hold of customer service, it may be more of a temporary issue. But if you were having this problem before the pandemic, then it may finally be time to switch.

Given the number of banks you could choose from, there's really no reason to stick with an institution that isn't meeting your needs. If these factors apply to you, take some time to research different banks and find a better place to keep your money.