3 Reasons Why Sticking With the Same Bank for 20 Years May Not Be a Good Idea

Published: 3/24/2025, 4:04:43 AM EDT

3 Reasons Why Sticking With the Same Bank for 20 Years May Not Be a Good Idea — A man uses an ATM machine in a stock photo. (Shutterstock)

Americans can be quirky when taking the long view regarding financial commitments.

For instance, U.S. adults will switch jobs 12 times in their lives, or once every 4.1 years. They’ll also change hair stylists, mobile phone providers, auto mechanics, and golf clubs, among other lifestyle favorites, every few years or so, without thinking twice about it.

But one consumer relationship Americans won’t change very often is with their bank, especially their bank checking accounts.

That’s the takeaway from a new Bankrate study that concludes the average U.S. consumer will stick with the same bank for 19 years. Most banking consumers surveyed for the report say they stay with their financial institutions for understandable reasons like convenience and fewer hassles in changing banks.

Is that extended loyalty a good idea? Financial experts aren’t too sure.

“Things change over time,” said Bankrate senior industry analyst Ted Rossman in a statement. “You’re probably not wearing the same clothes or driving the same car that you had two decades ago. Your lifestyle changes, and your bank accounts should, too. It’s important to shop around every year or two to ensure you’re getting the best deal.”

3 Reasons to Make the Banking Switch

Why change banks when you feel like you don’t really need to? Consumer financial specialists say there are plenty of good reasons to make a move to a new bank or credit union–most of them with a dollar sign attached.

Here are three “make the switch” reasons that top the list.

1. To Curb or Cut Fees

If you’re being charged monthly fees for your account, you probably need to move to another bank.

“So many banks and credit unions offer low required balances, many as low as $5.00,” said Ashley Morgan, owner and attorney at Ashley Morgan Law, PC in Virginia, via email. “It’s about finding the right bank for your situation.”

If you need to use your debit card when traveling, find a bank that waives ATM fees and/or has an extensive in-network of ATMs.

“If you write a lot of checks, find a bank that offers free bill pay or gives you free checks each year,” Morgan said. “Banks are all competing, and many offer perks to get you to become a customer and stay with them.”

2. If You Are Not Getting a Great Rate of Return on Savings Vehicles

If you are regularly parking cash in your bank’s money market, certificate of deposit, or regular checking accounts, and you are getting paltry return yields of 2 percent or so, know that you can do better at other banks, especially online banks.

The Bankrate study noted online banks regularly offer high-yield savings accounts with returns of 4.5 percent or more. Digital banks can afford to pump up their savings yields as they don’t have to spend money on bank branches and extra staff.

“Online banks often offer higher savings rates—the top yields are close to 5 percent right now, whereas the largest brick-and-mortar banks tend to offer something like 0.01 or 0.02 percent,” Rossman noted.

Banking customers who are reluctant to switch banks, even for better cash savings, can get creative. “It can be a hassle to switch your primary checking account and reset all of your bill payments and direct deposits, so a good approach is to link the local checking account to an online high-yield savings account,” Rossman said. “That represents the best of both worlds.”

3. If You Are Having Financial Troubles

When it comes to possibly having issues with lenders and creditors, using the same bank long-term can work against you financially.

“If you’re facing potential collection activity from creditors, like with the IRS or defaulted credit cards, being at the same account for years means the creditor is more likely to know where you bank,” Morgan noted. “If you previously paid a creditor from XYZ Bank, the first place a creditor will try to garnish or levy is typically at XYZ Bank.”

If you’re worried about collection activity from creditors, the first thing Morgan advises clients is to switch banks. “It’s completely legal to start using a new bank account if you have a creditor trying to collect,” she said.

If You Want to Stay at Your Bank

Like most customer service sectors, banking is unique in that the experience isn't just about the transaction; it’s all about the relationship you develop with your financial institution.

“The longer you have an account with a financial institution, the more history you build with them,” said Hillary Seiler, CEO at Financial Footworks in Idaho, by email.

Seiler points out that banks always keep score and long-term customers can leverage that scoring model.

“If you manage your account well, that bank is more likely to offer you better rates, lower fees, and access to more financial products because they can see firsthand how you handle your money,” she said. “Your track record allows them to make faster decisions that can benefit your long-term financial picture.”