Should I Switch Banks?
Updated
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Pretty much everyone has asked the question, "Should I switch banks?" at some point or another. With so many options out there, including new online-only banks popping up all the time, it can be tough to know if you're getting the best deal where you are.
Ultimately, where you bank is up to you, but here are a few things to keep in mind if you're thinking about trying a new bank.
Changing banks could open the door to higher interest rates, lower fees, better customer service, and simpler account management tools. This is often the case for those who switch from brick-and-mortar banks to online banks. Online banks have lower overhead costs, so they're able to offer higher rates while charging fewer fees than traditional banks.
High interest rates are one of the biggest draws for customers looking to switch banks, but it shouldn't be the only feature you focus on. If a bank offers a high annual percentage yield (APY) but has poor customer service and error-prone online tools, accessing your funds is going to be a nightmare. So it's wise to consider a good interest rate as just one of several boxes a great bank account has to check.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 3.80%²
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for CIT Platinum Savings
On CIT's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
|
Earn a bonus of at least $225 after a one-time deposit of $25,000+.
Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Open Account for American Express® High Yield Savings Account
On American Express's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
3.70%
Rate info
3.70% annual percentage yield as of April 22, 2025. Terms apply.
Min. to earn: $0
|
N/A
|
Open Account for American Express® High Yield Savings Account
On American Express's Secure Website. |
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.
Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
Switching banks can be a bit of a pain, though it may not actually take that long. Many online bank accounts let you open an account from home whenever it's convenient for you. All you need is some personal information and possibly an initial deposit. Once you get everything set up, you can transfer your funds over and start using the new account.
What's more of a hassle is dealing with the old account you're leaving behind. If you have automatic bill payments set up from this account, you'll want to switch these over to your new account right away to avoid any late payments. Then, you can either hold onto the account as a backup or close it if you no longer use it. Some people switching to an online bank prefer to hold onto a brick-and-mortar checking account at least, so they have a place to easily withdraw cash if they need it.
Here are a few things to keep in mind when choosing a new bank.
Most banks offer FDIC insurance, which protects your money up to $250,000 per depositor per account. But it's still a good idea to verify this before you switch banks. If the institution you're considering doesn't have FDIC insurance, your money could be at risk if the bank goes under.
If the bank offers online or mobile banking tools, it should also have adequate encryption to prevent hackers from gaining access to your account. Most banks publish information about their security measures on their websites.
How easy it is to access your money depends on the type of bank account you choose as well as the bank itself. Most checking accounts give customers several options for accessing their cash, but high-yield savings accounts may require you to transfer the funds elsewhere first.
It's ultimately up to you to decide how you want to access your funds. For some, being able to visit a physical branch is key, while others don't need this. Think about your desired deposit and withdrawal options and look for a bank account that offers most or all of them.
Interest rates are another important factor to consider, especially for deposit accounts. If you're interested in the best savings account rates, online banks are hard to beat. Here's a closer look at how a typical online bank's rates stack up against a brick-and-mortar bank's rates:
Most banks and credit unions offer checking accounts, savings accounts, certificates of deposit (CDs), mortgages, personal loans, and more. You may not need some of these services right now, but if you think there's a possibility you'll use them in the future, consider choosing a bank that offers them.
Think about any specific bank account features you may want as well. For example, some bank accounts include budgeting tools or the opportunity to earn interest on debit card purchases. If these things appeal to you, look for a bank account that offers them.
Many of us are comfortable banking online these days and rarely speak to a bank representative. But if there's ever a problem with your online account or you have a question about services, it helps to be able to talk to a live person. See what support options are available to you and check their hours. Phone and email support are the most popular, but some banks may offer live chat help as well.
It doesn't hurt to get feedback from the bank's customers, too. If you know someone who banks at the institution you're considering, you can ask them about their service. Or check out its ratings from independent agencies like J.D. Power.
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Motley Fool Money's top savings account picks can earn you more than 10x the national average savings account rate.
Changing banks shouldn't affect your credit score because banks typically don't pull your credit report unless you're applying for a credit card or loan.
Yes, it's possible to have accounts with more than one bank, and some people even prefer this.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
