5 reasons to change banks in June

Switching banks can be a big hassle, but so can sticking with a bank you don’t like. Annoying fees, low interest rates on savings products, and clunky apps are things no one should waste their time on these days.

There are many great banks that make it easy to manage your money and even pay you for the privilege of storing your cash. Here are five reasons why you should seriously consider breaking up with your traditional bank this June.

1. Higher APYs on savings accounts and CDs.

Brick-and-mortar banks have long been considered the industry standard, but over the past decade they have been overtaken by online banks, which offer much higher annual percentage yields (APYs). The best savings accounts currently offer interest rates close to 5.00%. If your starting balance is $10,000, you can earn $500 per year. An offline CD with a 0.01% APY will only earn you $1 per year on that balance.

Current CD interest rates are also high. CDs with maturities up to one year have interest rates below 5.00%, while CDs with maturities up to five years have interest rates closer to 4.00% APY. This is the highest rate we’ve seen in years, and could put hundreds or even thousands of dollars in your pocket.

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Check out SoFi and save APY Up to 4.60% Fee information Draw a circle with the letter I inside it. Earn maximum APY by using direct deposit (no minimum required) or depositing $5,000 or more in qualified deposits every 30 days. See the SoFi Checking and Savings Rate Sheet at https://www.sofi.com/legal/banking-rate-sheet. FDIC member.	APY Up to 4.60% Fee information Draw a circle with the letter I inside it. Earn maximum APY by using direct deposit (no minimum required) or depositing $5,000 or more in qualified deposits every 30 days. See the SoFi Checking and Savings Rate Sheet at https://www.sofi.com/legal/banking-rate-sheet.	earn the least $0
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American Express® High Yield Savings APY 4.25% Fee information Draw a circle with the letter I inside it. 4.25% annual return as of June 1, 2024 Member FDIC.	APY 4.25% Fee information Draw a circle with the letter I inside it. 4.25% annual return as of June 1, 2024	earn the least $1

2. Reduce fees

Brick-and-mortar banks still charge monthly maintenance fees to their customers. Some of these can be as high as $30. To be fair, most institutions will waive the fee if you meet certain criteria, but not all do. In the summer, you have enough money to spend without having to pay the bank where you deposit your savings.

By switching to an online bank account, you don’t have to worry about paying monthly fees. Most online banks also eliminate other banking fees, such as out-of-network ATM fees and, in some cases, overdraft fees.

Summer usually gets people outside, and it’s not always easy to find time to run to the local bank or wrestle with outdated online interfaces. You want to be able to quickly see what you have and get your money where it needs to go.

Because online banks don’t have branches, they focus on building great digital experiences for their customers. The apps are generally user-friendly and allow you to check balances, transfer funds, and even deposit checks remotely.

4. Bigger ATM network

Some brick-and-mortar banks have large ATM networks. However, if you work at a small, local bank, you may have trouble finding an in-network ATM to withdraw cash, especially when traveling in the summer.

Online banks typically have partnerships with national commission-free ATM networks, such as Allpoint. This doesn’t guarantee they’ll get where you’re going, but your odds are definitely better than if you stick to your local bank.

5. Better benefits

Brick-and-mortar banks spend a lot of money paying employees and maintaining branches. However, online banks can often offer better deals to their customers because they have lower overhead costs. This includes lower fees and higher APY, as mentioned above.

However, this may also include things like the option to get paid up to two days early or bank account bonuses for new customers. These factors shouldn’t be the only reason to switch to a new bank, but they can be a deciding factor if you’re stuck between two accounts.

Whether you want to switch or not, it’s worth comparing offers from different banks so you know what’s out there. If you decide to proceed, don’t forget to switch any automatic payments you have set up to your new account to avoid accidentally falling behind on your bills.

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