Most customers stay put with their bank, even when it isn't serving them well. Here's how to tell when your bank is falling short — and the steps to switch to a better fit.
1 When Staying Put Costs You
After eight years as a customer at a big bank, Victor Villegas cut ties over an $18 fee.
“I looked at the benefits that other banks offered,” the instructional designer in Dallas says. “I realized that I was getting the short end of the stick in the banking relationship.”
It’s not a move many people make. In 2014, the EY Global Consumer Banking Survey reported that 60% of customers had no plans to move accounts within the next year, and it wasn’t always because they were satisfied. For example, 17% said that it was too difficult or time-consuming to change banks.
But not switching could be costly. If you haven’t looked at what your financial institution’s competitors offer, you might be getting the short end, too.
Your financial needs can change with time, and you won’t know if your bank is still the best one to meet yours unless you browse your options. You might find free accounts, low fees, more promising savings rates or better budgeting tools.
According to the same Global Consumer Banking Survey, 32% of customers who had closed bank accounts within the last year did so because of their bank’s rates or fees. You might also want to change banks because:
You got married (or divorced). It’s a fresh start, so try something new: a joint account at a bank that meets you and your spouse’s needs or a personal checking account with the features you want.
Your bank’s customer service fails to impress. Walk away if your neighborhood branch closed down, the call center’s hours don’t work with your schedule or you’re consistently met with a poor attitude.
Your bank doesn’t have your must-have features. If your bank lacks a decent mobile app, mobile check deposit capabilities, person-to-person money transfers, a digital wallet or budgeting tools, those are all valid reasons to leave.
You can also return to your old bank later. Charlie Lucero, a registered nurse in Santa Clarita, California, left his bank because he didn’t think he was properly informed about the fees attached to his account. He returned because his job suddenly qualified him for a free account.
Your relationship with your bank doesn’t have to be long term. If you’re unhappy or think you’d be happier elsewhere, move on.
And you don’t need to switch to another traditional bank. Technology gives you alternatives, such as online-only banks. These offer low fees, high interest rates on savings and strong digital experiences — but they don’t always accept cash deposits or have physical branches.
Some consumers also turn to prepaid debit cards. They have fees of their own, but a 2014 study by Pew Charitable Trusts reports that about one-third of prepaid card users closed a checking account because of overdrafts or bounced check fees.
Villegas created a system that works for him. He now has accounts at two banks for different purposes: an online bank for perks and a brick-and-mortar bank for its large ATM network.
You can do the same — or use another strategy. Feel free to mix and match institutions as you please.
4 Open Your New Account
One thing to note: Make sure changing banks will solve your problem. For three years, former bank teller Karlie Flores watched customers switch banks when banks changed policies in response to federal regulations. According to her, some customers didn’t understand that they would be met with the same requirements at any bank.
Once you’re ready, opening a new account can take as little as a few minutes online — but the other steps will take more time. Your old bank might require you to make a phone call, fill out paperwork or visit a branch to close an account. You’ll also have to reroute any direct deposits or automatic bill payments. Taking the right steps to switch banks can minimize obstacles.
It may sound tedious, but if you’ll save money, it could be worth it.
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Frequently Asked Questions
How do I know if I should switch banks?
Consider switching if your needs have changed or your bank charges high fees, since the EY Global Consumer Banking Survey found 32% of customers who closed accounts did so over rates or fees. Other signs include poor customer service, a closed neighborhood branch, inconvenient call center hours, or missing must-have features like a decent mobile app, mobile check deposit, person-to-person transfers, a digital wallet or budgeting tools.
Do I have to switch to another traditional bank?
No. Technology gives you alternatives such as online-only banks, which offer low fees, high interest rates on savings and strong digital experiences, though they don’t always accept cash deposits or have physical branches. Some consumers also turn to prepaid debit cards. You can even mix and match institutions, like keeping an online bank for perks and a brick-and-mortar bank for its large ATM network.
Why don't more people switch banks?
Many people stay put even when they aren’t satisfied. In 2014, the EY Global Consumer Banking Survey reported that 60% of customers had no plans to move accounts within the next year. Among reasons for staying, 17% said it was too difficult or time-consuming to change banks. But not switching could be costly if you haven’t compared what competitors offer.
How long does it take to open a new bank account?
Opening a new account can take as little as a few minutes online, but the other steps take more time. Your old bank might require you to make a phone call, fill out paperwork or visit a branch to close an account. You’ll also have to reroute any direct deposits or automatic bill payments. Taking the right steps to switch banks can minimize obstacles.
Will switching banks actually solve my problem?
Not always, so make sure changing banks will fix the issue first. Former bank teller Karlie Flores watched customers switch banks when policies changed in response to federal regulations, and some didn’t understand they would face the same requirements at any bank. If a switch will save you money, though, it could be worth the effort despite sounding tedious.
Bank Not Measuring Up? How to Tell and What to Do (by NerdWallet) page context
Bank Not Measuring Up? How to Tell and What to Do (by NerdWallet) is a Billshark page. It can help you with your bills and your choices, and it can show you how to save.
Wondering if your bank still fits? Spot the signs, compare options like online banks, and switch banks smoothly to stop overpaying on fees.
Use this page to learn about Billshark. Then go to the part of the site that fits what you need. Small steps add up. You can save a lot over time.
We share this page to help you make sense of your monthly bills, your choices, and what to do next. Keep this page handy. Ask us if you get stuck.
This page links you to more help from Billshark. Use it when you want more detail or a clear next step. You can save a lot over time.
Got a question about a bill you pay each month? This page can help you find the best answer. Read on to learn more. Small steps add up.
Read each part of this page at your own pace. If you need more help, go on to a guide on your topic. It is free to read. Keep this page handy. Ask us if you get stuck.
We put facts and tips in one place. This makes it easy to learn about the bills you pay at home. We are here to help. It only takes a few minutes.
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Use the menu and the links to go from a big question to the facts that fit your own needs. Keep this page handy. Ask us if you get stuck.
We keep things short and clear so you can choose well. You can then read more if you want to. It only takes a few minutes. You are in the right place.
The links on this page help you weigh your choices. They also help you see what you pay and what to do next. You can save a lot over time.
Our goal is to help you spot the bills you pay each month. We also share smart ways to keep them low. Ask us if you get stuck. Read on to learn more.
Come back to this page when you have a new question. It will still be here to help with bills and savings. You are in the right place. It is free to read.
We link the small choices you make each day to the big picture. That means your budget and what you spend at home. We make it easy for you.
Each part of this page helps you see what you need. It may be help with a plan, your account, or a good read. Read on to learn more. Small steps add up.
Use what you learn here to plan your questions. Look at your choices, then take the next step when you are ready. It is free to read. Keep this page handy.
Our pages link to each other. That way, you can find more help and still keep track of what you came for. We are here to help. It only takes a few minutes.
This page makes it easy to find the key facts first. Then you can pick a plan or make a change with less stress. Small steps add up. You can save a lot over time.
Good facts help you see why a bill went up. They also show you what to check before you call or reply. Keep this page handy. Ask us if you get stuck.
This page puts the key facts in one place. It can help you talk with a company about your bills and how to save. It only takes a few minutes. You are in the right place.
Our other pages explain the words you see on a bill. They also help you weigh the pros and cons of each plan. You can save a lot over time. We make it easy for you.
Our tips focus on real choices you can make. Start with the basics, then read a more detailed guide if you need one. Ask us if you get stuck. Read on to learn more.
This page is one of many that we share. Together they cover home costs, the firms you pay, and how to get help. You are in the right place. It is free to read.
Take your time and read this page first. It helps you see your choices and find out what to read next. We make it easy for you. We are here to help. It only takes a few minutes.
We set this page up so you can compare and keep reading. You will not need to hunt for what you want. Read on to learn more. Small steps add up. You can save a lot over time.
Monthly bills come with rules, terms, and fine print. This page helps you find the parts that count for you. It is free to read. Keep this page handy. Ask us if you get stuck.
Our pages give you a clear view of what you pay each month. You can then pick the plan or guide you want. We are here to help. It only takes a few minutes.
Some of our guides cover the basics. Others go into detail on one company or one type of bill. Small steps add up. You can save a lot over time. We make it easy for you.
It pays to read first and act later. This page links you to the next guide if you want to learn more. Keep this page handy. Ask us if you get stuck.
We share guides that help you make sense of your bills. They show your choices and the best next step. It only takes a few minutes. You are in the right place.
Want more detail on a bill, a plan, or your account? Check this page against the links we share here. You can save a lot over time. We make it easy for you.
We group our pages by topic to keep things simple. This helps you stay on track as you read about your costs. Ask us if you get stuck. Read on to learn more.
A bit of background goes a long way. It helps you spot what counts before you check a bill, change a plan, or call us. You are in the right place. It is free to read.
This page is part of our help library. It gives you clear facts and links so you can keep on reading. We make it easy for you. We are here to help.
Your needs can change, so come back any time. Our other pages can help you look into a new cost or plan. Read on to learn more. Small steps add up. You can save a lot over time.
We laid out this page to help you get the facts and compare them. You can then choose your next step with ease. It is free to read. Keep this page handy.
Most customers stay put with their bank, even when it isn't serving them well.
After eight years as a customer at a big bank, Victor Villegas cut ties over an $18 fee.
“I looked at the benefits that other banks offered,” the instructional designer in Dallas says.
It’s not a move many people make.
But not switching could be costly.
» MORE: How to switch banks.
Your financial needs can change with time, and you won’t know if your bank is still the best one to meet yours unless you browse your options.
According to the same Global Consumer Banking Survey, 32% of customers who had closed bank accounts within the last year did so because of their bank’s rates or fees.
You can also return to your old bank later.
Your relationship with your bank doesn’t have to be long term.
» MORE: NerdWallet’s best checking accounts.
And you don’t need to switch to another traditional bank.
