Why switching bank accounts could earn users more money
Bankrate: 77% of Americans like to bank via the web or mobile apps
(InvestigateTV) — Bankrate found that the typical bank account holder has had the same checking account for an average of 19 years.
For savings accounts the average is 17 years.
Ted Rossman with Bankrate called this a staggering amount of loyalty.
“In an odd way it’s almost comforting in a sense, I mean, gosh, how often do we stick with something that long,” he commented. “But it can actually be a problem and here’s why. A lot of people are in accounts that are no longer fitting that well, kind of like 20-year-old pants, or something like that. Maybe you are being charged monthly fees that are avoidable.”
He said some accounts may be charging out-of-network ATM fees that could be avoided by switching. Or users may be missing out on increased interest rates.
Those that have been using the same account for a long time are probably not getting the best return on their money, he added. And he understands that switching accounts can be a hassle.
“I would say to that, your best approach might be a hybrid approach,” Rossman shared. “Maybe you do keep the longstanding checking account, assuming it still works for you, but pair that with a new savings account. A lot of the best online banks are offering in the neighborhood about 4.5%. The big bank down the street is probably offering nothing or next to nothing.”
Rossman suggested opening a new savings account and transferring funds between accounts to take advantage of higher interest rates for your emergency savings.
A $10,000 emergency fund earning 4.5% interest could bring in an extra $450 a year—essentially free money.
Copyright 2025 Gray Media Group, Inc. All rights reserved.
