4 Reasons to Switch Banks in July

There are some good reasons why people don’t switch banks often. For one, you have to make sure your automatic payments — for bills like car payments or rent and utilities — are moved over to the new account.

But while there can be a few hurdles to jump over when switching banks, there are plenty of good reasons why now could be an excellent time to make the move. Here are four reasons to switch in July.

1. Lower fees

No one likes fees, and bank fees may be even more despised because it’s easy to forget which fees you’re being charged, why, and for how much. That may be why bank fees are one of the top reasons why people consider switching banks.

While many banks with brick-and-mortar branches charge maintenance fees ranging from $5 to $35 per month, most online banks don’t. Some in-person banks will waive the fee if you meet the deposit requirements, but you typically don’t have to worry about this with online banks.

A recent survey showed that 61% of Americans plan to travel this summer, which means more spending. This makes eliminating any and all unnecessary fees in July a smart move.

2. Higher APYs

Returns for bank accounts, certificates of deposit, and money market accounts have soared over the past two years. But not for all banks.

Traditional banks still pay paltry annual percentage yields (APYs) compared to online banks. For example, the basic savings account at my current bank has an APY of just 0.01%, while many online banks pay over 5.00%.

However, the higher rates on high-yield savings accounts won’t last forever, so jumping on them now could be a smart move. The Federal Reserve expects to lower interest rates later this year and into next year, which will likely push CD rates and savings account APYs lower.

3. Better customer satisfaction

I don’t think about my bank very often, except when it makes confusing changes to its mobile app or when I try signing up for a new service that’s not self-explanatory.

Banks don’t usually rank high on customer satisfaction surveys, so if you’re annoyed with your bank, it may be a good time to switch. Most online banks have better customer satisfaction levels than brick-and-mortar banks, with only some scoring above the industry average. But many in-person banks score far below.

4. Better access and services

As with any product Americans use, bank customers are always looking for something better. Recent data shows that 20% of bank customers considered switching banks because they want better cash access (like through ATMs) and more services.

For example, many online banks offer extended call center hours and some even have 24/7 support. Good luck trying to find that level of support from a bank branch location!

Having access to customer support is even more critical during the summer when you’re more likely to be traveling or juggling a busy family schedule.

Keep this in mind when switching

If you’re looking for a new bank account this July, remember that there are two factors to look for before switching: fees and services. Both of these top the list for Americans looking to switch banks, which means you’ll likely care about them, too.

And with interest rates still high, look for a savings account that pays you a high APY and doesn’t have any minimum deposit requirements. Just spending a few minutes comparing online banks could earn you easy money with a high APY account. Plus, spending some time comparing banks is a good excuse to stay inside and away from that July heat!

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