Amid evolving news + uncertainty surrounding COVID-19, your financial needs are our top priority.
For individual financial information, click here.
For Small Businesses, including the Paycheck Protection Program (PPP), click here.

9 Reasons to Switch Bank Accounts

December 16, 2019 · 4 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

9 Reasons to Switch Bank Accounts

Is your bank ghosting you? Charging fees out of the blue? Do you feel like you’re settling instead of looking for “the one”?

It can be tough to tell when it’s time to call it quits with your bank, especially after all these years and bank statements you’ve shared. Switching banks isn’t always easy, but neither is detecting those red flags.

If you’re generally happy with your bank, it might be best to stay put, especially if it’s a busy time. While it’s typically easy to open a new account, you’ll need to transfer your balance over, change autopay settings and more. If you’re not up for the task, you could end up with late fees, penalty payments, and more.

But, if you and your current bank account are on the rocks, it might be time to move on—for the right reasons, of course. A brokerage cash management account, which combines checking and savings accounts under one virtual roof, could be one option. The accounts tend to offer higher interest rates and also often don’t charge fees that a brick-and-mortar location might.

Learn why you might consider trading up and switching accounts.

Fees

What’s worse than the dreaded 2am “U up?” text? Possibly an unexpected fee or charge from your banking institution to your account. Some banks charge up to $30/month in checking fees, then there are fees for using out-of-network ATMs and more.

If minimum balance fees, maintenance fees, paper statement fees, and weighty overdraft fees plague your monthly account balance, it might be time to consider switching accounts.

You could research alternative financial institutions and see if they charge similar rates or if they waive fees in certain circumstances. If you’re noticing unnecessary fees popping up in your account, it could be time to look for a new institution to better manage your money with.

Bad Customer Service

Does it feel like your bank is never there for you when you actually need them? When you detect fraud on your debit card, does it take half a day to straighten the charges out? Maybe the call center hours aren’t great, or you haven’t been happy with the in-person service at your bank’s retail location.

Whatever has given you pause, bad customer service is a common reason for leaving a bank. You might want better branch hours or online chat service instead of a customer service line. Your reasons might vary, but if you don’t feel you’re being treated as a valued customer, then it’s worth considering a move.

Joint Accounts

If you’re getting married or joining a partnership and want to open a joint account, it might be time to switch accounts. Your partner’s financial institution might offer better features, or have better customer service. In that case, it might be time to say farewell to your current account.

Lack of Branches

Maybe you’ve been with the same bank for years but moved to a different city. It could be a struggle to find your bank’s location, leading you to incur hefty ATM charges from using other ATMs when you’re in need of cash.

If your bank isn’t convenient location-wise to you, and you often find yourself in need of a brick-and-mortar location, then you might think about making the switch to a bank more common in your area. If brick and mortar doesn’t matter much to you, it might be time to consider an online-only cash management account, which often offer ATM reimbursement across the country.

Safety and Security

If you’re concerned about the safety of your funds at your current bank, then it might be time to switch. Check to see if your current bank is FDIC-insured. This insurance would mean your cash is still covered, even if the bank goes under.

You Want “In” on Incentives

If you’ve been with your bank for a while, you probably haven’t thought about incentives or sign-on bonus offers. While a one-time offer shouldn’t be the primary reason your switch bank accounts, taking advantage of an additional benefit might just be the cherry on top of your sundae.

Pay attention to rewards programs, or a bonus for a first-time deposit of a certain amount—it might end up being the tipping point to open something new.

Multiple Accounts

When it comes to bank accounts, you might be considering playing the field and opening multiple accounts at once. For business owners, freelancers, or foreign travelers, this can be a common practice.

If you’re looking to keep these accounts separate, you could consider opening a new account at a different bank or financial institution.

Lack of Features

You might’ve been floored by the rates and specials you had when first signing up with your current bank, but if you notice peers getting better features with other institutions, then maybe it’s time to move.

This could be ATM-fee reimbursement, a better online portal, and mobile check deposit, or overdraft fee forgiveness. If you feel like you’re missing out on special features with your current bank, then take a look around to see what other institutions offer. You might be surprised by what you’ll find.

Better APY

Wouldn’t we all like to make money just for putting our cash in a financial institution? Most offer some kind of APY (annual percentage yield), for using their services. The thing is, APYs can vary dramatically depending on where you’re banking or managing your money.

It might be only the difference of a few dollars a year, but hey, if you’re considering a new financial institution, take note of their APY as compared to your current institution.

Another Reason to Switch

If the signs are pointing you in a new direction, you might consider trying SoFi Money®. With an APY of 0.20%, no fees, and the ability to use any ATM worldwide that accepts Mastercard® and SoFi will reimburse you for the fees, it could be the perfect match you’re looking for.

SoFi works hard to give you high interest and charge zero account fees. With that in mind, our interest rate and fee structure is subject to change at any time. See our terms and conditions to learn more. Remember, you deserve more, and if something’s not meeting your needs, there are plenty of other fish in the sea.

Check out SoFi Money — a cash management account that offers high interest and no fees!


SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC .
Neither SoFi nor its affiliates is a bank.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOMN19053

TLS 1.2 Encrypted
Equal Housing Lender