I want you to march into your bank right now and tell the teller they can take their mediocre interest rates and shove them. Just kidding, don’t do that. 1.) The poor teller has nothing to do with the rates and doesn’t get paid enough to deal with that 2.) you’ll probably get “escorted” out of there pretty quickly. Most likely there are better options than your current bank though.
Most people have a tendency to find a bank that’s close to them and then stick with it for their whole life and not seek out alternatives. I commend them for their loyalty, but this isn’t a marriage. It’s okay, you’re allowed to look. I won’t tell.
Here’s a few reasons you should make that switch.
Bonuses For Opening New Account
Wanna feel like a famous athlete that gets paid just for committing to an organization? Well now you can because some banks are giving away free money just for opening an account with them. For example, I recently saw an offer where they would give you $250 just for holding at least $500 in your account for 60 days. Fifty percent profit in 60 days with no risk? Don’t mind if I do. There are a lot of offers out there that offer various gifts, so find one that looks good to you and start doing your research. Sometimes there are stipulations to be able to receive the gift so make sure you understand all of that before you open the account. Also look out for monthly fees they may charge (they usually can be negated through holding a certain amount in the account or direct depositing enough into the account each month).
Savings Account Interest Rates
As cool as .01-.05% savings accounts are, it turns out there are better ones out there. Thanks to the internet there are some banks that are able to operate almost completely online, which cuts their overhead costs of operating brick and mortar locations. They are then able to pass some of that savings onto you, the customer. Ally Bank and Marcus by Goldman Sachs are both well-respected options that fit this bill. Both are offering just below 2% (about 40-200x other banks) interest for savings accounts at the moment and have all the same insurance coverage as the bigger banks so you don’t need to worry about your money disappearing. These types of accounts are especially good for emergency funds and will allow you to just about keep up with inflation while those very low interest rate accounts will get eaten away by it.
Perks can make a huge difference in your banking experience, so look for a bank that has some good ones. A few examples of these are no overdraft fees, no ATM fees, 24/7 customer service, fraud detection, and free transfers. If your bank doesn’t have all or at least most of these it might be time to jump ship.
Realistically you can have more than one bank account. Once again, this isn’t a marriage so no one is going to judge you for getting a little polyamorous with your banks. You can use one for your savings account and another for your checking account if you want to. And don’t feel bad if you do end up leaving one. I think they’ll be okay.