Services like credit cards, saving & checking accounts, loans, etc., are provided by banks and hence we choose to use their services. However, the services level ranges widely with every brand in the US.
However, the decision of switching a bank or a bank account is influenced by number of factors.
- Higher Interest Rates
This doesn’t necessarily mean only interest rates. I am talking about general monetary benefits offered by a bank. Though interest rate given by banks, which is 0.5% currently, is governed by the Fed to a larger extent, other benefits are not. Frugal people select a bank that offers $100 with every new account, or something like that. However, monetary benefits remain to be the most influential factor in switching a bank. - Service level
Most of us love exceptional customer service and are also ready to pay a bit extra for it. In my case, I despise
calling up Chase (don’t believe me? Try calling them up someday). However, I simply love to contact my local branch bank because I know the manager quite well, and they greet me by my last name, always. So, I prefer it over Chase. However, in addition to calling by last names, a customer service encompasses many other services that provides ease and value-for-money. Hence, it affects the decision of selecting or despising a company. - Accessibility
This is one of the most important reasons affecting the choice of bank. And quite obviously, I would choose a local bank that’s near my house instead of Chase, which is around 3 miles away. Ease to access one’s own money is what we pay for, right? - Security
With lots of giants being bankrupt recently, people have started being more cautious choosing their banking services. Hence, a minor error or rumor that mentions instability of bank immediately affects its business; people start switching their account to other banks. Hence, security is one of the important reasons now, more than ever.
I have accounts in a couple of banks. However, I haven’t been compelled to switch to other banks because all the above factors are taken care of quite satisfactorily.
I believe the main reason for changing banking services should be security. If you are unsatisfied, you should immediately make alternative ways.
Many banks do provide less interest rates but their services are better than all. So due to lower interest one shouldn’t change its bank.
Keeping long relations with banks is always beneficial. You are given good privileges and your concern becomes primary for them.
You never know when your bank goes default. Today even known banks are shut in a moment. It has become variable to keep accounts with different banks.
Long relations with bank means your the customer with golden hands! You get super great service
Accessibility is really a major issue for switching banks. There is no point to keep an A/c if you cannot access whenever you need.
There are some banks which are really good and takes care of every customer but their accessibility is very low. That is one big thing for banks.