Here's How Much Money You Can Make in a Year Just by Switching Banks

If you're still using the bank account you opened in your teens, you could be paying a lot more than you have to just to use your bank. Don't feel bad; I've done the same thing. In fact, the average U.S. consumer keeps the same checking account for nearly 18 years.

In my defense, I kept my account so I could quickly transfer money to my dad and husband, who use the same bank. However, I also opened a high-yield savings account (HYSA), certificate of deposit (CD), and investment account at a newer bank that offers much higher interest rates and lower fees.

If you haven't looked at the options for bank accounts lately, there's a good chance you're losing out on thousands a year by paying more and earning less in interest. Here's what you could save by switching banks.

No minimum balance requirements could save you $120 a year

Major national banks often charge a low balance fee for savings accounts, usually somewhere between $5 and $10. While the amount you're required to keep in your account varies from $300 to $500, you can expect to pay the bank to hold your money rather than earning interest.

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

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 28, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 28, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 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.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

Luckily, as more banks drop this fee, others are pressured to follow suit. If you move from a bank that charges this fee to one that doesn't, you could save $120 a year.

No overdraft fees could save you $250 a year

Overdraft fees are those pesky fees that kick in if you spend more than is in your checking account and the bank has to transfer money from your savings account to cover it. For that small banking transaction, which is generally automated, you can expect to pay between $10 and $35. In fact, the average U.S. consumer pays more than $250 in overdraft fees a year. Moving to a bank without overdraft fees could save you hundreds of dollars a year.

Note: These are different from insufficient funds; overdraft fees are the money banks charge you to spend your own money.

No (or lower) ATM fees could save you $343.44 a year

You can now expect to pay an average of $4.77 to use an out-of-network ATM. This includes the average surcharge from the ATM-operating banks, plus the average charge of $1.58 from your own bank. While there is no standard withdrawal limit, a few banks limit you to six savings account withdrawals per month.

I'm going to base my numbers on this figure of six ATM withdrawals a month. This means that if you switch to a bank that pays back ATM fees or doesn't charge them, you can save $28.62 per month, or $343.44 per year.

New account bonus: Earn $300 to $400

Many banks offer bonuses averaging between $300 and $400 for opening a new account. The terms can vary by offer and bank; for example, you might need to set up direct deposit or deposit a specific amount and keep the account open for a few months.

Total saved and earned (drum roll please)

Now, let's add up all these numbers. Per year, moving to a new account could save or earn you:

• $120 with no minimum balance fees
• $250 with no overdraft fees
• $343.44 with no ATM fees
• $350 (split the most common offers down the middle) in bonus fees

By switching your bank, you could make and/or save a total of $1,063.44 a year.

The fees and bonuses offered can vary by bank and tend to change quickly. I've seen new account bonuses as high as $700, so definitely spend some time shopping around. To find out which bank fits your needs, check out the best checking accounts with the lowest fees and highest bonuses.