5 Reasons to Close a Bank Account
by Maurie Backman | Updated July 17, 2021 - First published on March 3, 2021
Sometimes, it pays to break up with your bank. Here's when.
Drive around your neighborhood or look online. Chances are, you'll realize that you have options when it comes to your bank account. As such, if you're not 100% happy with your existing bank, it pays to dump it and find a new one that better serves your needs. Here are a few reasons to consider closing an account and starting fresh elsewhere.
1. The customer service is terrible
Poor customer service is something you shouldn't put up with in general -- and especially not from your bank. In a recent study by The Ascent, about 97% of people ranked quality of customer service as an important bank feature. When you think about customer service, pay attention to factors like how long it takes to speak to a representative, and how knowledgeable those representatives are. Politeness is important, too, but it only goes so far. If you need to wait on hold for 25 minutes only to reach someone who can't help you, that's not good.
2. You're charged ridiculous fees
Some banks charge fees for having too low a balance, making too many transactions, or simply having an account in the first place. Your goal should be to minimize those fees or avoid them altogether. If your bank charges a lot for your account, it's time to consider looking at a new one.
3. You can snag a higher interest rate elsewhere
Today's interest rates aren't much to write home about. But it certainly pays to seek out the highest rates possible. If your bank is paying a minimal amount of interest, you may want to close that savings account and find one that will pay you more generously. The same holds true for a certificate of deposit. If there are better offers out there, consider closing your CD once it comes due and open one at another institution.
4. Local branches have shut down
As a banking customer, convenience should be important to you. Having branches nearby makes it easy to access ATMs, notary services, and other features you might require in person. As such, if the nearest branches to your home or place of work close down, that's reason enough to close your bank account and open a new one someplace more convenient.
5. The online experience is clunky
These days, a lot of us do more banking from our laptops or phones than in person. If your bank's online setup makes it difficult to access your account or perform transactions, that's a good reason to make a switch. And if you have any online security concerns, you shouldn't hesitate to close your account and move your money someplace else.
There's no shortage of banks these days, so why settle for one that isn't meeting your needs? If the above scenarios apply to you, it may be time to close your bank account and open a new one. You could save money on fees, score more interest on the money you have socked away, and have a less stressful and more convenient banking experience overall.
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