3 Signs You Should Switch Banks Now

with Inflation Still persistent and interest rate After years of battling it out, it’s clear that the old ways of doing business are over. In today’s economic climate, Americans need to take a closer look at their finances and be more discerning about where they put their savings and do their banking. Even if you’re comfortable using your current bank or credit union, it may not be the best institution to use right now. In fact, you might even be lose money By leaving your accounts where they are.

But how do you know when your bank is worth it and when it’s time to look elsewhere? Below, we’ve compiled a list of signs that you should switch banks now While it’s not exhaustive (everyone’s personal financial situation is different), it should provide a good barometer for considering a move.

Start by exploring high-yield savings accounts with different banks here to see how much more money you can earn.

3 Signs You Should Switch Banks Now

Here are three signs it’s time to move your money elsewhere.

Your interest rate is lower

The Average interest rate on a regular savings account About 0.40%, respectively FDIC. Rates on high yield savings accounts, meanwhile, is exponentially higher. It is not uncommon to find an account that offers interest rates 12 times More than what can be secured with a regular savings account. That’s substantially more money than you could earn by switching your savings to a higher-yield account offered by your current bank.

How much money are we talking about? For example, using a $5,000 deposit, that money in a regular account would grow to just $5,020 after one year. But if you put it in a high-yield account earning 4.85%, that same deposit would grow to $5,242 over the same period. The more you deposit, obviously, the higher the rate you can take advantage of.

Don’t just accept the first interest rate you get that is higher than your current bank. Shop around first to find the highest possible rate. Start here now.

You are getting charged fees and fines

Your savings are hard enough. Don’t let it get eaten up by maintenance fees and minimum balance penalties. There are many online banks that offer both High interest rates and no feesLet your money grow continuously.

That said, this account is usually given by Online Bank. Because these institutions do not have the overhead costs of physical branch banks, they generally have lower costs. They pass these savings on to account holders by reducing or eliminating higher interest rates and fees and penalties.

You already do most (or all) of your banking online

If you’re a member of a bank that has physical branches but you do most or all of your banking online, that’s a sign you should consider switching to an online one. As mentioned above, online banks can offer much higher interest rates and little to no fees and penalties.

While an online bank may not be convenient for someone who prefers to go to their local branch and do their banking in person, it is probably preferable for those who already do their banking online. In this case, transferring to an online bank should be relatively seamless, and you’ll earn more interest and pay fewer fees. It’s a rare win-win.

Check out your online high-yield savings account options here now and get started

Bottom line

In today’s economic climate, you don’t want your savings to suffer inertia. You can earn the highest interest possible with your current bank (and not get hit with fees and penalties). But if you don’t, and you already do most of your banking online, it might be time to switch banks By transferring your money to an online account, you can earn more interest, pay fewer fees, and enjoy the convenience you’re already accustomed to banking electronically.