As you establish yourself financially, it’s worth asking whether your bank still suits your current lifestyle. A lot has changed in your life since you opened your first account—or your parents opened it for you. So how do you know when it’s time to switch to another financial institution?
How to know when it’s time to switch banks
How do you know when enough is enough and it’s time to move on? For starters, it’s always good to research what the competition is offering. Big banks and online banks sometimes have special welcome offers or incentives to switch, such as bonus points or cash rewards. That alone may be worth your while.
Long term, making the switch can help you save on account fees, gain access to different financial products, receive better financial advice or get a fuller picture of your finances (if, say, the institution has a financial app that offers insights into your spending.)
Is your bank still meeting your needs? Questions to ask yourself
To help you decide whether your financial institution is still serving you well, consider every aspect of the relationship, including customer service, fees, advice, and the security of your money and personal information. Here’s a list of questions to give you some perspective on if it’s time to break up and find a new bank.
Do you still need access to a local brick-and-mortar bank, and are the hours convenient for you? Or is doing everything online enough for you?
How’s the customer service experience? (Look at how the bank staff has dealt with you in person, on the phone and through online chat. Recall if you’ve been frustrated with wait times and resolutions.)
Are its different product lines enough for you? Some banks will bundle services for lower fees or discounts. Call up your bank and ask if they have such programs, if you’re not already partaking.
Speaking of products and services: Does the institution offer joint bank accounts you could share with a sibling, roommate or significant other?
Could you be paying lower fees? This one involves a bit of shopping around, looking at costs like one-time charges or monthly bank account fees.
Do you trust the people who are giving you advice? For example, for investments and life insurance, the advisors may only be offering you products they sell. Even if you don’t fully break up, you may want to pick and choose services based on what makes sense for you.
How secure is the institution? Find out if it is a member of the Canada Deposit Insurance Corporation (CDIC), and ensure that it treats and protects clients’ personal information from situations like cyber-security incidents and fraud.
As you go through the list of questions above, assess whether you’re happy with your current bank or if you should consider switching to a different one.
Combining finances with another person
Moving your accounts to a new home may also be beneficial if you’re in a relationship or want to combine your finances with another person.
My husband and I are customers of two different Canadian banks. Whenever we go into a branch or speak with our banks on the phone, we see stark contrasts between the customer service we receive. Plus, we have found that having our accounts spread between different banks makes it more challenging to move money around and see our full financial picture. So, if you’re in a similar situation, take the opportunity to visit both banks to see how they stack up against one another. You may be surprised to see what the similarities and differences are.
Maintaining accounts at a different institution than your significant other or sibling can make it more difficult to monitor or manage your finances together. Bringing them under one institution can help you enjoy all the benefits discussed above and get a pulse on how your financial situation looks under one umbrella. It can reduce the need to remember multiple log-in credentials or to move money around using bank drafts and Interac e-Transfers.