Bank not measuring up? How to tell and what to do.

For one, take a look at what your bank’s competitors are offering.

|
Rick Wilking/Reuters/File
Bank teller Tyler Wong talks to a customer at the Wells Fargo bank in Denver.

After eight years as a customer at a big bank, Victor Villegas cut ties over an $18 fee.

“I looked at the benefits that other banks offered,” the instructional designer in Dallas says. “I realized that I was getting the short end of the stick in the banking relationship.”

It’s not a move many people make. In 2014, the EY Global Consumer Banking Survey reported that 60% of customers had no plans to move accounts within the next year, and it wasn’t always because they were satisfied. For example, 17% said that it was too difficult or time-consuming to change banks.

But not switching could be costly. If you haven’t looked at what your financial institution’s competitors offer, you might be getting the short end, too.

Take stock of your financial needs

Your financial needs can change with time, and you won’t know if your bank is still the best one to meet yours unless you browse your options. You might find free accounts, low fees, more promising savings rates or better budgeting tools.

According to the same Global Consumer Banking Survey, 32% of customers who had closed bank accounts within the last year did so because of their bank’s rates or fees. You might also want to change banks because:

  • You got married (or divorced). It’s a fresh start, so try something new: a joint account at a bank that meets you and your spouse’s needs or a personal checking account with the features you want. 
  • Your bank’s customer service fails to impress. Walk away if your neighborhood branch closed down, the call center’s hours don’t work with your schedule or you’re consistently met with a poor attitude.
  • Your bank doesn’t have your must-have features. If your bank lacks a decent mobile app, mobile check deposit capabilities, person-to-person money transfers, a digital wallet or budgeting tools, those are all valid reasons to leave.

You can also return to your old bank later. Charlie Lucero, a registered nurse in Santa Clarita, California, left his bank because he didn’t think he was properly informed about the fees attached to his account. He returned because his job suddenly qualified him for a free account.

Your relationship with your bank doesn’t have to be long term. If you’re unhappy or think you’d be happier elsewhere, move on.

Research your options

And you don’t need to switch to another traditional bank. Technology gives you alternatives, such as online-only banks. These offer low fees, high interest rates on savings and strong digital experiences — but they don’t always accept cash deposits or have physical branches.

Some consumers also turn to prepaid debit cards. They have fees of their own, but a 2014 study by Pew Charitable Trusts reports that about one-third of prepaid card users closed a checking account because of overdrafts or bounced check fees. 

Villegas created a system that works for him. He now has accounts at two banks for different purposes: an online bank for perks and a brick-and-mortar bank for its large ATM network.

You can do the same — or use another strategy. Feel free to mix and match institutions as you please. 

Open your new account

One thing to note: Make sure changing banks will solve your problem. For three years, former bank teller Karlie Flores watched customers switch banks when banks changed policies in response to federal regulations. According to her, some customers didn’t understand that they would be met with the same requirements at any bank.

Once you’re ready, opening a new account can take as little as a few minutes online — but the other steps will take more time. Your old bank might require you to make a phone call, fill out paperwork or visit a branch to close an account. You’ll also have to reroute any direct deposits or automatic bill payments. Taking the right steps to switch banks can minimize obstacles.

It may sound tedious, but if you’ll save money, it could be worth it.

Melissa Lambarena is a staff writer at NerdWallet, a personal finance website. Email: mlambarena@nerdwallet.com. Twitter:@LissaLambarena.

This story originally appeared on NerdWallet.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to Bank not measuring up? How to tell and what to do.
Read this article in
https://www.csmonitor.com/Business/Saving-Money/2016/0824/Bank-not-measuring-up-How-to-tell-and-what-to-do
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe