- I almost felt married to the first bank I opened an account with over 10 years ago.
- However, over the years I have wanted to switch to other banks with better benefits and now I am ready.
- I want better interest rates, lower fees, fewer rules on account minimums and open a CD.
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It’s weird to say, but for so many years I felt married to my bank. I opened my first bank account more than 10 years ago, at the one used by my parents. I didn’t do any research or compare offers from other banks. I just made a quick and easy decision.
Several times over the past five years, I have wanted to change banks to one with better benefits, such as low fees and a high interest rate. When I tried to close my savings and
at my bank, I felt a sense of guilt. Did my loyalty matter? Did I do wrong?
But this year, I realized that I had had enough. It’s time to divorce my current bank and transfer all my remaining assets to a new one. Here are five reasons I’m giving up loyalty for better benefits at a new financial institution.
1. I lose interest
One of the main reasons I can’t wait to get my money out of my current back and close the account is because I’m losing money every day on interest. Currently, my bank offers an interest rate of 0.01% on their savings account. Other banks I consider offer an interest rate of 0.5%.
When I think back to the passive income I could have earned over the past 10 years by simply making a change, I feel an even greater sense of urgency to make the move.
2. I’m fed up with endless fees
The amount of charges I’m accumulating in my current bank has been bothering me a lot lately. At the end of 2021, I had a $35 overdraft fee and a $15 wire transfer fee.
I do my best to manage my cash flow, but sometimes things happen that are out of my control. I look forward to moving to a bank that waives these fees so I can continue to manage my money without having to worry about additional fees.
3. I can’t always maintain the minimum average balance
One of the monthly headaches I face with my current bank – where I not only have personal accounts but also my business accounts – is that they charge my business account a $16 fee if I don’t meet not their rules regarding the minimum balance that I need to have every month.
To avoid this charge, I must maintain an average balance of $5,000 or use my business debit card to make at least $250 in qualifying purchases per month. There are months where I can’t do this and I have to fight against these charges. Although I often manage to get the $16 back, it’s still frustrating to have to deal with it.
I would like to move to a bank that does not have these rules and there are many who do not.
4. I no longer need a bank branch
One of the main reasons I stuck with my current bank was that many of the financial institutions I was tempted to switch to had no physical location and only existed online. I romanticized the idea of sticking with a bank that had branches in cities all over the country.
But the truth is, for the past two years, I’ve had no reason to physically set foot in a bank. All of my customer service inquiries or inquiries were handled over the phone.
Once I was able to experience a purely virtual relationship with my current bank, I realized there was little value for me in staying with a financial institution just because they offered an in-person experience.
5. I also want to open a CD
I’m a minimalist when it comes to managing my finances and like having only one major credit card and one bank where all my accounts are hosted.
That’s why when I change banks, I want to open a CD account with them and invest some of my money there to enjoy a higher interest rate. At my current bank they are offering 0.05% for a 37 month term and at a bank I am considering they are offering 0.8% for a 60 month term.
Putting money in a CD with a high APY in a new bank will make me feel like I’m taking better care of my finances than I do now.