4 Signs It's Time to Upgrade Your Bank Account

Here's when it pays to look at moving your money.

Once you get into the habit of using the same bank for years, it can be hard to make a switch to a new one. After all, there's something to be said for knowing how your bank works and being familiar with the tools it provides, such as its mobile app. 

But at some point, it could pay to upgrade to a better bank account. Here are four signs you're ready to make a change.

1. There are better interest rates to be had

The money you keep in a savings account or certificate of deposit (CD) is unlikely to earn you a lot of interest, especially in today's environment. But that doesn't mean you shouldn't chase the highest interest rate possible. 

Perhaps your bank only offers 0.20% interest on a savings account, whereas another bank might offer 0.60%. Even though 0.60% isn't a very high rate at all, and it won't amount to much interest on an annual basis unless you have a lot of money in savings, it still pays to go after an interest rate that's more generous.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
CIT Platinum Savings APY 4.85% APY for balances of $5,000 or more Rate info 4.85% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000 for max APY Open Account for CIT Platinum Savings On CIT's Secure Website. Member FDIC.	APY 4.85% APY for balances of $5,000 or more Rate info 4.85% APY for balances of $5,000 or more; otherwise, 0.25% APY	Min. to earn $100 to open account, $5,000 for max APY
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of September 8, 2024 Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of September 8, 2024	Min. to earn $0

Remember, a savings account is the best place to stash your emergency fund. But you might as well earn as much interest on that money as you can. 

2. You're being charged a lot of fees

Some banks are notorious for charging different types of fees. Now some of those fees may be avoidable. For example, if you make a point not to overdraw your checking account, you won't be hit with any overdraft fees.

But other fees may be harder to avoid. If your bank charges an account maintenance fee, for example, you may be losing money month after month for no good reason. And if so, it could be time for a change. 

3. There's a bonus you can snag

Many people are used to sign-up bonuses within the context of credit cards. Well, some bank accounts offer bonuses too, especially within the context of checking accounts. That's free money that could help you cover a lot of bills, so it's probably worth going after -- especially if your bank already has its share of shortcomings. 

4. Its tools aren't user-friendly

Even if you keep your money at a physical bank, you may do most of your actual money-transferring and managing online. But if your bank's mobile app or website offers a poor user experience, then it could pay to move your money over to a bank that employs better, more easy-to-use technology.

It especially pays to switch banks if your bank's mobile site crashes often. That's the sort of instability you shouldn't have to deal with as a customer.

Don't settle

You shouldn't settle for a bank account that doesn't offer the best perks and experience. If these signs apply to you, it means you're probably ready for a bank account upgrade -- even if it means having to get used to a different way of banking.