Whether you’re looking for better interest rates or improved customer experience, switching banks is an important decision.
Here are four things you should consider when switching banks to ensure a safe and seamless banking experience:
Bank Fees
Almost all banks impose certain fees to cover the cost of their business and earn a profit. Check your bank’s website and information pages to find out the exact amount they will be deducting. Standard types of fees include:
Monthly Maintenance Fee: This is a recurring fee for administrative tasks. You can avoid it by maintaining the required minimum account balance.
Overdraft Fees: If you make a payment request for more than what you have in your account, an overdraft fee is charged. Always double-check your account balance before making a transaction.
ATM Fees: If you withdraw money from an ATM outside your bank’s network, a small amount will be deducted from your balance during the time of the transaction.
Compare the fee structures of different banks. Assess your banking habits and determine which fee is most likely to affect you. Knowing which fees your bank is going to charge can help you manage expenses and take measures.
Interest Rates
Next, compare the interest rates of different banks to get maximum returns on your savings. The annual percentage yield (APY) for savings accounts begins from 4.50%. You can also look for high-yield savings accounts with competitive interest rates.
For greater interest rates, you can also open a Certificate of Deposit (CD) account. A CD account pays interest on money for a set period of time. It is a secure and low-risk way to earn interest.
Set clear financial goals before you start looking for a new bank. This will help you shortlist banks and choose the one that offers the most appropriate interest rates.
Customer Service
Customer service can make a significant impact on your banking experience. Here’s what you should look for in a bank’s customer service:
- Consider their response time. Assess how fast the customer care team addresses inquiries and issues.
- Make sure the bank offers support through multiple channels, such as online chat, phone calls, and mobile apps. Most banks provide 24/7 customer support for a seamless experience.
- Consider the transparency of different bank features and fees.
- Ensure that the staff has in-depth knowledge of products and services and can provide personalized advice whenever necessary.
Customer care agents from reputable banks will show you how to switch banks. Read the step-by-step guide on switching banks by SoFi. It will provide guidance throughout the process and ensure that all your funds are securely transferred.
Security Features
Lastly, make sure your new bank has robust security features to protect your funds and personal information. Choose a bank that offers:
- Two-factor authentication before logging into your online account.
- Alerts for unusual account activity and large transactions.
- Multi-factor authentication during online purchases.
- Fraud monitoring services to detect and prevent unauthorized access.
- Stringent firewalls to protect your data during online surfing.
Thoroughly read your new bank’s security policies to make an informed decision.
