Tired of Being Robbed by Your Bank?

While interest rates paid to you by banks are at historic lows, fees charged by banks are heading the other direction – higher and more numerous. It’s no wonder consumers are getting fed up with banks. But before you make any sudden moves to switch your account to another bank, make sure to conduct some due diligence first.

If you can get a better savings interest rate at another bank and not lose any services or pay more in fees, it’s an option worth considering. If you don’t think you’re getting a high enough interest rate (or you’re paying too much on your loans), it’s worth your time to compare rates at other institutions.

With Congress acting to stop banks from automatically charging consumers for things like overdraft protection, banks are looking for other ways to take your money. One way is to start charging monthly fees for not maintaining a minimum balance in your savings and/or checking account. Another is to charge a monthly fee for taking too much money out of your savings account or making frequent withdrawals. So be aware of stealth fees as you shop – more interest on your savings account doesn’t count for much when it’s more than offset by higher fees on your checking account.

If you decide to actually switch banks, depending on the type of account you open, your new bank may subject you to what’s called in the industry as a “hard credit pull” – basically pulling your credit score. While that’s not normally a problem, if you happen to be negotiating a new home loan, that credit check could temporarily lower your credit score – and make it harder to borrow at the best rates and terms on that new home.

Make sure you get your money’s worth by checking not just rates, but other things that are important to you, like fees and customer service. And don’t forget small local banks and credit unions. They may not show up within the national listings of sites, but they still may offer great deals.

Feel like your bank is robbing you? We’d like to hear about it. Post your comment below. Your email address will never be published at this site for your privacy and protection.