Managing your finances in your golden years isn’t just about your retirement accounts. It’s also about choosing the right bank to ensure you’re getting better rates and services. The bank you used during your working years may no longer meet your needs when it comes to saving, and sticking with the wrong bank could cost you money.
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Christopher Stroup, certified financial planner (CFP) and owner of Silicon Beach Financial, explained five key signs that you should consider switching banks in retirement. From outdated services to poor customer support, these red flags can impact your financial security and peace of mind.
1. High Service Fees
Since many retirees do not keep most of their cash in regular checking or savings accounts, you might find that your bank is charging you a monthly fee for not meeting a minimum requirement. Stroup suggested that if your bank is doing so related to minimum balance requirements or for services that could be more affordable elsewhere, you might want to switch.
“As you shift to a more fixed income in retirement, every dollar counts,” Stroup said.
2. Low Interest Rates on Savings Accounts
Additionally, interest rates have remained high enough to make banks competitive for rates. If you’re not getting the best possible rate on your savings, there’s easily another bank that is happy to take your business.
“Paying excessive fees or earning little to no interest on your savings can erode your financial security,” Stroup said.
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3. Poor Customer Service or Lack of Support
Because your financial needs can change radically in retirement, you may need more personalized support, especially, as Stroup said, “when managing investments, accessing funds quickly or troubleshooting account issues.”
He warned that if you’re consistently facing long wait times, poor service or inadequate assistance, it might be a sign that your bank isn’t offering the service level you need or deserve.
4. Limited Online Access or Outdated Tools
“In today’s digital world, you need easy, secure access to your accounts from home or on the go,” Stroup said. Thus, if your bank’s online tools are outdated or cumbersome to use, it may be time to switch.
“Retirees often want to manage investments, review balances or transfer funds without leaving the house.”
5. Inconvenient or Inadequate ATM Access
As you get older, easy access to cash or the ability to do banking without visiting a branch becomes more important, Stroup said. You don’t owe loyalty to a bank just because you’ve been banking there for years. “If your bank doesn’t have a wide network of ATMs or has high fees for using other bank ATMs, it can become frustrating and costly,” he said.
While you never want to be hasty about moving money around, do your research, compare, read the fine print and consider whether you’re getting the most out of your bank.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 5 Key Signs You Should Switch Banks in Retirement
