Consumer loyalty to one bank is not what it used to be. One of the main reasons for this is a four letter word that starts with F. FEES…
These days choosing the wrong financial institution can cost you hundreds a year in fees. Checking accounts offered by mega banks have increased most fees in recent years. So much that the average overdraft fee among the largest banks now costs about $35 according to bankrate.
If you’re on the fence about switching banks just know that you’re not alone. Resonate recently collected data that found nearly 31 million consumers feel undervalued by their current institution.
Here’s three tell-tale signs that it’s time to move on and find a new bank or credit union.
A Dismal Interest Rate
If your money is only earning the current average interest rate of 0.09% it’s time to shop around. There are many banks willing to pay you more in interest. For example Radius Bank offers a checking account that pays 17-20x more than the average interest checking account.
The rule of thumb is higher rates can be found with online only financial institutions.
Too Many Old Fashion Fees
There are a number of fees your bank may be charging you. In fact the average traditional bank account has over 30 different fees according to wallethub.
You should not be paying for things like monthly maintenance fees for failing to keep a minimum balance, or atm fees. If you are it’s time for a change.
There are more low-cost banking options than ever before thanks to tech based providers like Aspiration. If you’re not ready to go with an online only bank you can also find low-cost accounts with most credit unions.
You’re Getting Bad Service
There is a lot that can be said for poor customer service from your bank. Having to wait on hold to speak with a real person, and still not getting your problem resolved can be frustrating.
You should be able to communicate with your bank in various ways to get the answer you’re looking for.
If you’re jumping through hoops to get a simple issue fixed by your bank save yourself the angry tweet, and just switch already.