4 Reasons to Break Up With Your Bank

Don't stick with a bank that's not treating you right.

Key points

• Some banks are better than others.
• It may be a good idea to switch banks if you're being charged a lot of fees.
• Changing banks could also make sense if it's not convenient to make deposits.

Many people open a bank account and stick with their current bank for years after -- often not considering whether the relationship is still working for them. This could end up being a costly mistake.

You don't have to make this error. Instead, you can be on the lookout for these four key issues that could suggest it's time to break up with your current bank and switch to a different one.

1. You're being charged a lot of fees

The biggest reason to switch banks is if you're paying fees with your current financial institution. Specifically, you may be hit with a monthly maintenance fee for your account, ATM fees, overdraft fees, or a host of other costs.

Many banks have eliminated these fees, so you should be able to find a less expensive alternative. If you can keep more money in your pocket by simply switching financial institutions, there's no reason not to.

2. You're not earning much, if any, interest

If you have a savings account with a bank that's paying you a very low interest rate, then it may be worth switching to a different financial institution. With inflation surging right now, it's even more important than ever to make sure you're being paid a reasonable interest rate on the money in your bank account. If you aren't earning much, if any, interest, then you're just losing ground.

Many banks specifically offer high-yield savings accounts that pay rates well above the national average. Look into these options if you aren't being rewarded with much interest for your saved money at your current bank.

3. Making deposits is inconvenient

If it's not convenient to move money into your current bank account, then you may want to switch to one that makes life easier.

Some banks, for example, allow you to deposit large sums of money via mobile deposit. This means even if you get big checks throughout the month, you can put the funds into your account from the comfort of your home using your phone or tablet. Others, however, don't offer mobile deposits or have low limits so you end up having to go to the bank to put your money into your account. This can be a hassle, especially if you don't have a branch near you.

There are also some financial institutions that offer early access to your money from your employer. If your bank doesn't and it would be convenient for you to be able to use your directly-deposited funds a day or two early, then you may wish to look into a new bank that offers this feature.

4. You're getting poor customer service

Finally, if your bank doesn't treat you right, you should think about switching to one that does. Poor customer service can take many forms, from not answering questions to misapplying payments to being slow to post deposited funds.

If any of these four red flags apply to your current banking relationship, there's no reason not to look at what other options are out there. Changing banks could make your life better and easier, and it could be well worth doing.