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Let’s face it, switching banks can be a pain. If you have one main bank, your checking account is probably there, your paycheck lands there, and your bills, payment apps, and other accounts may all be connected there.

Even if you’ve thought about changing banks, it may feel a bit like switching gym memberships or cellphone plans: Whether you’re better off or not, it’s easier to just stick with what you have. With everything else going on, and the hassle and time it would take, it tends to fall low on the to-do list.

The thing is, there are tradeoffs — especially if inertia keeps you from earning a competitive interest rate on your savings. And these days, you don’t have to settle for just one bank. Thanks to online banking, setting up new accounts is pretty simple, making it easier to cherry pick the rates and products you like the best.

So what? A little curiosity can go a long way. And a growing share of people, especially younger folks, are rethinking where they keep their money. One in four U.S. households are now considering changing their main bank — a 10-year high, according to data from RFI Global, a market analytics firm for financial services companies.

If you’ve been toying with the idea of adding or switching banks, here are a few things to consider:

•  Interest rates: Online-only banks have a clear edge when it comes to savings accounts. They typically offer high-yield accounts with much higher interest rates than traditional banks, according to Bankrate. (SoFi offers an annual percentage yield, or APY, of up to 4.30%.¹)

  This gap adds up: Put $5,000 into a savings account earning an APY of 0.01% and after five years, you’d barely have earned enough to buy a hamburger. A high-yield account earning 4.30% would net you almost $1,200 in interest.

  (Caveat: The Federal Reserve is lowering benchmark interest rates. That means banks can borrow more cheaply and have less incentive to use strong APYs to attract customers. Translation: High-yield APYs have probably peaked for now.)

•  Rewards and incentives: This is the top reason people switch banks, according to the RFI data. (Though competitive interest rates are also high on the list.) “Rewards” can mean anything from cash sign-up bonuses and loan discounts to financial advice and access to special events. Only you’ll know what’s important to you — and what’s worth making a move for.

•  Fees: From overdraft and ATM fees to monthly account charges, small costs can quietly chip away at your balance. That doesn’t mean fees are always a dealbreaker — if you’re earning more in interest than you’re paying in fees, the trade-off can make sense. But you should know exactly what you’re paying for and whether you’re getting value in return.

•  Convenience: This one’s personal. Some people want a one-stop shop that includes crypto, investing, and budgeting tools. Others value physical branches and ATM access. Think about what you actually use your bank for — and whether you’re getting what you need.

Ultimately, you’re in control. If you’re a SoFi member, we hope we’ve earned a place in your financial life. But if your bank is profiting from your inertia, it may be time to take a closer look. Check your rates, tally your fees, and ask yourself whether your bank deserves your loyalty.

Related Reading

Banks Love Your Loyalty – Do They Actually Reward You for It? (U.S. News & World Report)

How Much Americans Are Losing by Keeping Money in Low-Yield Accounts (Bankrate)

How to Switch Banks: An Easy Step-by-Step Guide (Yahoo)

¹ Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

Most people carry a wallet full of plastic — maybe three to four active credit cards plus at least one debit card connected to their checking account.

But when it comes time to pay for something, which one do you pull out? If you have more than one rewards credit card, you probably choose the one that will reward you the most for whatever you happen to be buying — giving you extra cash back on gas or groceries, for instance.

But otherwise, how should you decide which one to use? Because credit cards are a loan product and debit cards aren’t, there are pros and cons to each, some of which can have ramifications for your credit score or budget.

Here’s what to consider when deciding which payment method is best and when.

Debit Cards

Pros:

•  Limits overspending: Debit cards deduct money directly from your checking account, so you can’t really spend more than you have. (You can get dinged with a fee for overdrawing your account, though, so don’t try it.)

•  No added costs: You’re not borrowing money, so there’s no potential for accruing interest charges or incurring late fees. You might also avoid the percentage fees some places charge for using a credit card (for example, when paying taxes to the IRS).

•  No debt: Again, no borrowing means you don’t run the risk of building up debt you’ll have to repay.

Cons:

•  No rewards for spending: One of the biggest downsides to debit cards is the lack of spending rewards like airline miles or cash back.

•  Doesn’t build credit history: Since you don’t have to repay anything, using a debit card doesn’t usually help build your credit history or improve your credit score.

•  More risk: If your debit card is stolen, any money that’s spent comes out of your account immediately, and resolving fraud can take time.

Credit Cards

Pros:

•  Rewards and perks: Many credit cards reward spending with cash back or travel points that can be redeemed for hotels or flights. Depending on your spending (you fly a lot or you’re a foodie,) these can add up to hundreds of dollars a year. (Though fancier cards can charge big annual fees.)

•  Builds credit history: Using a credit card responsibly can help establish and improve your credit score. While a good track record with auto loans or student loans will also help you build credit, on-time monthly credit card payments can be an important stepping stone if you’re just starting out.

•  Better fraud protection: Credit cards offer better protection against fraud, and you won’t immediately lose money from your checking account.

•  Time: Credit cards buy you a bit of time. Unlike debit cards, you don’t have to pay for your purchases right away and you’ll have a few weeks to pay your bill. This can be very convenient — as long as this doesn’t lead to overspending.

Cons:

•  Risk of overspending: Credit cards can tempt you to spend more than you can comfortably afford to pay, leading to debt. This isn’t a problem, however, if you use your credit card as if it were a debit card, paying your balance in full every month.

•  High interest rates: If you don’t pay your balance in full each month, you’ll be charged some of the highest interest rates of any loan product. The average in August was 21.4%, the latest Federal Reserve data shows. And credit card debt can quickly rack up thanks to compounding interest.

•  Can hurt your credit score: Just as with any other credit product, late or missed payments can have a significant impact on your score.

•  More complex: Some cards will draw you in with a 0% interest rate for the first year (sometimes longer), making it easier to run up a balance you’re unable to handle once the finance charges kick in.

The right balance of credit vs. debit will vary from person to person and can fluctuate depending on your stage of life and financial situation. The most important thing is to keep control of your cards — rather than letting them control you.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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