Some people do a lot of research before choosing a bank. Others simply pick a bank based on name recognition or convenience, such as selecting the bank that happens to have a branch down the block from where they live.
At some point, though, it could make sense to move from your current bank to a new one. So if you’re wondering whether you should make a bank change in 2024, ask yourself these key questions.
1. Are the interest rates my bank is offering competitive?
These days, savers have a prime opportunity to earn a nice amount of interest on their money. Following the Federal Reserve’s multiple interest rate hikes in 2022 and 2023, savings account and CD rates are now pretty generous.
Of course, things could start to change later this year if the Fed cuts rates, which it may do if inflation continues to cool. But for now, you can potentially earn a nice amount of interest in a CD or savings account.
So to that end, do some research and see how well your bank stacks up. If you find that many other banks are offering notably better interest rates, then it may be time for a switch.
2. Does my bank charge fees that other banks don’t?
Some banks impose fees for things like having too low a balance or making too many transactions. If your bank is one of them, you may want to find a bank that’s less fee-happy. You don’t want to keep losing money for no good reason.
One thing to keep in mind is that in recent years, a growing number of banks have decided to do away with overdraft fees. So if those are still a component of your checking account, you may want to make a change.
3. Is it easy to connect with customer service at my bank?
Reaching a customer service representative at your bank shouldn’t be a painful experience. You should not have to wait 30 minutes on hold listening to annoying music to speak to a live person, and you shouldn’t have to wait in an endless line every time you visit your closest branch.
If your bank is sorely lacking in the customer service department, that’s reason alone to consider a switch. You shouldn’t have to feel like the help you need is inaccessible.
4. Has my bank been involved in numerous security breaches?
Banks have long been a target for in-person and cyber criminals looking to make some quick cash. And unfortunately, hacking attempts are only increasing. JPMorgan Chase, in fact, says that it’s seen a notable increase in attempts to infiltrate its systems over the past year.
It’s crucial for banks to invest in physical and cyber security to keep your money safe. If you keep hearing reports that your bank has been involved in a security breach, you may want to consider making a move to a bank that’s investing more resources in preventing those things from happening.
You may be pretty happy with your bank, and if so, you don’t have to make a change. But if your bank is stingy in the interest department, charges high fees, has lousy customer service, and doesn’t have a good handle on information security, then it may be time to look at moving your money elsewhere.
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