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2 signs that your bank is putting profit before your financial situation

Posted on by Josh L
2 signs that your bank is putting profit before your financial situation

The first time I saw a string of overdraft fees hit my checking account, I knew the bank could kick me out while I wasn’t healthy. The kicker? I was charged multiple fees that same day and I didn’t even notice my balance was low. Surprise! Talk about cruelty.

I’ve since discovered that banks have a surprisingly full set of tools they can use to gnaw away at your savings. Put on your glasses, people. Below are two signs that your bank is putting profits ahead of your financial situation. At least more than usual.

1. Hidden or complex commissions – what are they hiding?

Banks that charge hidden and complex fees raise red flags. Read: run. This is the year 2024. A complex commission structure is not necessary to retain funds or remain solvent.

In fact, the Consumer Protection Bureau (CFPB) has proposed capping the fee at $3 for major banks and credit unions. Banks today charge you a whopping $27 on average for an overdraft!

Our picks for the best high-yield savings accounts of 2024

APY

4.00%


Assessment information

A circle with the letter I.

Check the Capital One website for the most current rates. The annual percentage rate (APY) stated is variable and accurate as of October 23, 2024. Rates may be changed at any time before or after account opening.

Min. earn

$0

APY

4.00%


Assessment information

A circle with the letter I.

4.00% per annum as of October 29, 2024

Min. earn

$0

APY

4.70% APY on balances of $5,000 or more


Assessment information

A circle with the letter I.

4.70% APY on balances of $5,000 or more; otherwise 0.25% APY

Min. earn

$100 to open an account, $5000 for max APY

Bigger banks tend to charge higher fees and make it more difficult. Capital One, Bank of America and Citibank are among the banks that have sent the most complaints about fees over the past three years, according to Consumer Affairs. Online banks tend to charge lower and simpler fees.

Proof is online banking apps like Chime, which charge small fees and clearly state them on their website. Do you like fees? me too

Discover bank accounts with the lowest fees. Click here to compare our top 10 current accounts and avoid expensive overdraft fees.

2. Terrible rates – they bite your income

Banks offering interest rates nine times lower than high-yield savings accounts pose a threat. There is no need for this. You can open an online bank account right now and get a rate nine times higher than the national average. The catch is that there are no physical branches.

Or is it so? Capital One offers a stellar combination of great rates and physical locations. If you live near Capital One Cafe, you can get the best of both worlds. You won’t get as many seats as Chase offers, but does that matter? If you’re traveling, maybe. Otherwise, probably fine.

I switched from US Bank to Chime and more than tripled the APY on my savings account. And get this: Chime isn’t even one of our top high-yield savings accounts — click here to compare savings accounts with rates nine times the national average.

Should I change the bank?

Switch banks when your bills become more trouble than they’re worth. Commissions are expensive, shady ads are a ticking time bomb, and horrible rates are simply unnecessary. It’s 2024 and you have options. Consider a better bank.

I did it twice and it was worth it. The main disadvantage is that it takes time to unlink your debit card from your subscription and bill payments. But I’m no longer paying $100 a year in overdraft fees, and my savings add up to a lot more. If you time it right, you can even qualify for a bank account bonus.