If Your Bank Hasn't Done This Recently, It's Time to Put Your Money Elsewhere – The Motley Fool

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by Maurie Backman | Published on Nov. 24, 2022
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Whether you’re putting money into a checking account, savings account, or both, it’s important to choose the right home for your cash. That means finding a bank with great customer service, minimal fees, and an online platform that’s easy to use (even if you bank at a brick-and-mortar establishment, chances are, you’ll do your share of transactions online).
But those aren’t the only things to look for in a bank. If you have money in a savings account, your goal should be to snag the highest interest rate possible on your cash. And that’s why it’s important to keep tabs on what interest your bank is paying — and move your money elsewhere if your bank stops being competitive.
For many years, the interest rates banks were paying on savings were so minimal that it almost didn’t matter where you kept your money. But these days, savings account rates are up across the board in the wake of rate hikes on the part of the Federal Reserve. And so you finally have a solid opportunity to generate a nice return on your money.

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That’s why you’ll need to make sure the interest rate your savings account is paying is competitive. And if it isn’t, it may be time to move your money over to another bank.
Over the past number of months, many banks have increased their savings account interest rates, as well as their CD rates. If your bank hasn’t, or if it hasn’t increased its rates at a comparable pace, then there’s no sense in selling yourself short by keeping your cash parked where it is.
Keep in mind that if you have savings at a physical bank, moving over to an online bank could result in a nice boost on the interest rate front. Online banks don’t have to pay rent for different locations like brick-and-mortar banks. And since they tend to have a lot fewer overhead costs, that savings commonly gets passed along to consumers in the form of more generous interest rates.
You may be less than thrilled with the interest rate your bank is giving you on your savings. If that’s the case, then switching banks makes sense.
But that’s not the only reason to consider making a change. Maybe you’re tired of waiting 20 minutes or more to speak to a customer service representative every time you call your bank with a question. Or maybe you don’t like the fact that your bank nickel and dimes you with fees in your checking account.
Your bank should not be a source of stress. If anything, it should make your life easier. And so if there’s any aspect of your banking experience you aren’t happy with, you really shouldn’t hesitate to explore alternative options.
There are so many banks to choose from these days — both physical and online. So if yours has been letting you down, it may be time to cut ties and find a better home for your hard-earned cash.
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you more than 15x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2022.
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Maurie Backman writes about current events affecting small businesses for The Ascent and The Motley Fool.
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. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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