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When it comes to changing bank accounts, inertia often sets in. But is it wise to sit tight with your current banking situation?
Big banks may count on you to do so. They know that once you start a relationship with them, it can be hard to change. Maybe you’ve signed up for direct deposit or you’ve had your account since college. You may like that there’s a brick-and-mortar branch near you and are reluctant to switch to online banking. Or maybe you have an online bank and figure they’re all about the same.
Whatever the case, now may be the time to rethink your banking relationship. Rising interest rates have encouraged some banks to offer more attractive rates as well as plenty of features and services with low or no fees.
Take a look at these five reasons why you may benefit from switching banks.
Key Points
• Many people stay with banks out of habit, but shopping around may get you better rates and lower fees.
• Better interest rates, especially for high-yield savings accounts, are a top reason for switching your bank account.
• Online banks in particular may offer some of the best APYs for savings and checking accounts.
• Other reasons for changing banks include signup bonuses and promotions, additional features, an improved mobile app, and reduced or eliminated fees.
• Switching banks may take some effort and research, but it can be worth it over time.
Smart Reasons to Switch to a New Bank
1. Higher Rates
The Federal Reserve (aka the Fed) raised the federal funds rate, a key borrowing benchmark, 11 times between March 2022 and July 2023. In response, some, but not all, banks have increased the annual percentage yield (APY) they pay on their savings and checking accounts. While the national average savings account rate is only 0.3% APY as of June 15, 2026, some online banks are offering rates higher than 4.00% APY. An increase like that can add up over time and boost your savings.
It’s important to remember that your bank won’t automatically raise rates in line with the Fed. Some banks find that an increase doesn’t fit with their business plan. Or they may figure they won’t lose many customers if they don’t offer an increase.
Thanks to lower overhead costs, online bank accounts tend to offer higher rates than bank accounts offered by traditional banks. It makes sense to check what APY you’re currently earning on your bank account and see how that compares with other banks. That’s a tip for both checking accounts and savings accounts. There’s no reason not to earn top dollar.
Recommended: All About Interest Rates and How They Work
2. Low or No Fees
You may also want to make sure that any extra interest you’re earning isn’t eaten up by fees. In fact, avoiding the usual fees can be a good reason to switch banks. Minimum balance fees, maintenance fees, paper statement fees, savings withdrawal fees, out-of-network ATM fees, and overdraft/non-sufficient funds (NSF) fees can add up over time and take a chunk of your savings.
In some cases, the fees you pay will depend on the way you bank. People who have a high monthly balance or who link their checking and savings accounts may never incur fees. Or, if your bank offers a wide network of ATMs in your area, out-of-network ATM fees will hardly ever apply. That said, many institutions, particularly online banks, offer no-fee banking with competitive APYs so you can avoid paying any account fees at all. This can be a wise move if you are being charged costly banking fees.
3. Better Online and Mobile Banking
When it comes to managing a bank account, today’s consumers generally want it to be fast and simple. Many have gotten accustomed to 24/7 banking. It used to be that online banks offered the most advanced digital services. To compete, many brick-and-mortar banks have improved their websites and mobile apps. But whether it’s an online or traditional bank, not all portals are the best they can be.
When looking for a new bank account, you’ll want to make sure the bank you’re considering offers a secure, easy-to-use, state-of-the-art platform. Can you pay bills, scan mobile deposits, check your real-time balance, change your password, report possible fraud, and complete other functions at any time and almost anywhere you have a secure connection? Is there a chat or phone function available to get help if you need it? If possible, talk to other customers to see if they’ve experienced any glitches or compromised security.
If you’re lacking the convenience of online and mobile banking, you may want to rethink where you bank for these reasons. There are many pros to online and mobile banking, and you should be enjoying them.
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4. More Banking Features
Many banks offer lots of extras when you open a new account or agree to maintain a certain minimum deposit. Waiving fees is common. So is a monthly reimbursement for out-of-network ATM fees. Some banks may offer a limited amount of no-fee overdraft protection coverage.
Connected checking and savings accounts with combined interest, discounts on personal loans from the same institution, and budgeting tools included in the banking app may also be available. In addition, many banks offer incentives for setting up direct deposit and early pay options that offer faster access to your paycheck.
Once you’ve created a list of banks with favorable APYs, it’s a good idea to compare the various features each bank offers to help determine which is the best fit for your needs.
5. Sign-Up Incentives
While switching banks isn’t necessarily complicated, it’s probably not a good idea to do so solely because of a temporary sign-up promotion. If the fees are high or if the bank lacks other features you need, the bonus or other incentive likely isn’t worth the trouble.
That said, if you’re shopping for a new bank, whether it’s a small or a large bank, and all other things are equal, it might make sense to take advantage of a special bank promotion. Who wouldn’t want some extra cash or a higher interest rate?
Recommended: 8 Ways to Make Your Money Work for You
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The Takeaway
The process of switching banks does entail some time and paperwork. So it’s easy to understand why consumers often avoid this task. But additional banking features, low or no fees, and a higher interest rate are some of the reasons why making the switch can make sense. Choosing a bank that’s a better fit can help improve your overall financial picture.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
How do I know if it’s time to switch bank accounts?
Look at the rates you’re currently earning, and compare them to other banks, both traditional and online, in your area. You may find better rates, reduced fees, and more features with a competing bank.
Will I pay more in fees with a new bank account?
It depends. Many banks, both online and traditional, offer reduced or no fees for their customers. Check rates and fees online or contact banks you’re considering to learn more about their fee schedule.
Is it worth switching bank accounts to access mobile banking?
Mobile banking has many advantages, primarily flexibility and convenience. If these aspects of banking are important to you, look into banks that offer a full-featured mobile app that’s easy to use.
Photo credit: iStock/NicolasMcComber
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet. We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/. *Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
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