It May Be the Perfect Time to Switch Banks

• Author: Michael Bordonada
• Posted: 2023-11-22

Having a bank that you can trust with your money is a huge decision. You want a responsible and dependable financial institution to help you handle your money. Unfortunately, many banks today are experiencing glitches in their systems. Recently, Wells Fargo opened somewhere around 2 million accounts without permission; therefore, they had to pay a $185 million fine for this scandalous act.

Teddy Roosevelt once said, “Carry a big stick.” Massachusetts senator Elizabeth Warren has posted videos online to try to convince people that all is good with the company. She is speaking boldly; however, Rick Newman made the point that she does not have the big stick that Teddy Roosevelt possessed.

Even with the confidence that Warren has in Wells Fargo CEO John G. Stumpf, it will be the shareholders and the board at Wells Fargo who will decide his future fate. However, the customers of Wells Fargo can voice their opinion by deciding whether to stick with the bank. If they are looking to switch, this is the perfect time to jump ship.

Online based banks such as Ally, American Express, Capital One, Barclays, and Synchrony Bank offer some of the best interest rates in the industry. Because they do not have expensive locations all over the place, these online institutions are able to offer rates of up to 1.05%.

In fact, Goldman Sachs is giving customers an interest rate of 1.05% to regular clients because it wants to get money for its capital reserves. However, customers who were hit by the latest misconduct by a bank might not wish to take advantage of this offer because of their role in “The Big Short.”

According to GoBankingRates, Wells Fargo savings accounts interest rates are an average 0.01% and 0.03% as of September 22. The difference in these low numbers compared to the high yield accounts can really add up in an account. For example, an emergency fund of $10,000 would only make $3.00 where a high yield account would earn much more in a year. The difference is astounding.

At this time, the interest rates are very low; therefore, the high interest is such an attractive seller for customers looking for a new bank. Now would be an excellent time to switch financial institutions to take advantage of these nice returns.

Nevertheless, it is note-worthy to mention that online banks do not suit all individuals. Because they are strictly online, there is not a convenient method to deposit cash. You cannot talk to a person face to face, and without a debit card, it could take a lengthy amount of time to make withdrawals.

In addition, some of these online institutions are limited on the products that they offer. For example, American Express does not offer checking account options, and some banks require you to maintain a minimum balance, so the gains will not be much. Everyone needs to decide what is right for them. In the times we live in, online banking sure is an attractive offer.