Why It May Be Time for You to Switch Banks

When you change banks, you may have to deal with different interest rates, new fees, and the assorted updating that such a change requires. However, despite having to buy new checks, changing banks can be worth the effort. Here are four signs you should consider a new bank:

Bad Customer Service

When considering this reason, it’s important to be careful in your judgment. A single incident of rude service is no reason to change banks, however, a consistent pattern of behavior is. When looking at new banks, consider what they offer for customer service, to see if it’s a good fit, i.e. if you want live chat, look for a bank that offers this.  

Increasing Fees 

Many banks have added new fees or changed existing ones. When reviewing fees, consider if the fee itself is one you can avoid (such as an overdraft) or one that is simply due to a bank being a bad fit, such as account maintenance fees due to a low balance. If the fees are not directly caused by your actions, look for a bank that better fits your earning and spending habits.   


Your bank should be convenient for your needs. Now, convenience takes many forms your bank could lack in branch locations, ATMs, fully featured online account access, or a useful app. If your bank isn’t offering you access to the services you need, seek out one that does.

Lack Of FDIC Protection

In the broad sense, FDIC insurance protects for up to $250,000 per customer in case of bank failure. This means that even if your bank goes out of business, you won’t lose the contents of your account(s). If your bank does not carry FDIC insurance (or it has lapsed,) consider switching. No matter the health of the bank, lack of FDIC insurance is a risk you should never take.

There are several practical reasons to change your banking provider. Many people stay with a bank simply due to routine or habit. While changing banks does require work and a transition period, the effort can be well worth it. If your bank is raising fees or not providing the service you need, then it’s worthwhile to find a new bank, rather than continue to pay for unsatisfactory service.