12 Ways To Bank Smarter And Put More Cash In Your Pocket Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
Cavan Images/Getty Images June 07, 2022 Karen Bennett is a consumer banking reporter at Bankrate. She uses her finance writing background to help readers learn more about savings and checking accounts, CDs, and other financial matters. Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. David Schepp is a wealth editor for Bankrate, focusing on deposits and consumer banking content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Here is a list of our . Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Banking can be complicated, with thousands of banks to choose from that each offer an exhaustive set of disclosures and fine print. And then there’s the rates and fees, all of which need to be considered carefully before you sign on the dotted line. But these tips and tricks can help you bank smarter — so you can earn more money and save time. 1 Reevaluate your bank
The average U.S. adult has had the same primary checking account for about 17 years, according to a . Customers often stick with the same bank if it doesn’t charge them fees or if they feel it would be a hassle to switch banks, the survey found. “Just don’t fall asleep at the switch,” says Greg McBride, CFA, Bankrate chief financial analyst. “The marketplace is constantly changing with new offers, innovative products and features that might put more money in your pocket or make your life easier. Or both. So it pays to have your antenna up and be on the lookout for something that is a better deal or works better for your financial lifestyle.” Take a look at the fees you’re paying and whether you can avoid them. If your bank requires a lofty minimum balance, for example, see if there are online with lower minimums to sidestep maintenance fees. These banks also typically offer fee-free ATM withdrawals, plus large ATM networks convenient to home and work. can help you find the right bank for you. 2 Don t assume your bank is giving you the best rate
You may feel your bank appreciates you as a customer, but that doesn’t necessarily mean it’s paying a competitive annual percentage yield (APY) on your funds. “Part of it is people just assume that their bank is going to do — I’ll say, ‘right by them,’ so to speak — and give them what they should be getting,” says Elizabeth Buffardi, a certified financial planner at Crescendo Financial Planners in Oak Brook, Illinois. The twice in spring of 2022, after keeping them at near zero for two years. The rising interest rates have caused some banks to increase yields on their savings accounts and (CDs), making it a good time to shop around for the best rates. You can find online banks with deposit accounts that pay rates many times the national average. 3 Don t let a high rate fool you
An account’s APY is the rate you’ll earn per year if the interest is compounded. The APY for savings and interest-bearing checking accounts is often variable, while the APY for most CDs is fixed. When shopping for an account with the highest APY, read the fine print to see how long the rate you’re being offered lasts. A promotional or introductory rate may be competitive, but could only last for a few months or a year. Also check whether a certain minimum balance is required in order to receive a given APY. 4 Consider a CD for a higher APY
Today’s savings accounts and money market accounts can earn a yield of up to about 1.15 percent and 1.23 percent, respectively. You might be able to find a better rate with a CD if you’re comfortable with locking in your money for a set term. currently pay up to about 1.8 percent on a , while two-year CDs pay about 2.5 percent and about 2.85 percent. Keep in mind a CD might have a higher minimum balance requirement than a savings account. Also, withdrawing the money before the end of the CD term may incur a penalty, which can take a bite out of any interest you earned and possibly some principal, too. If in doubt, put your money in a liquid savings or money market account instead. 5 Strategically plan your bank interactions
Planning your visit to a branch for nonurgent matters, rather than just dropping by, can help ensure you’ll receive the help you need. If you’re applying for a , for example, knowing that a mortgage specialist will be there when you go can save time. Another time-saving option is making transactions online, when possible. When calling a bank’s customer service number for routine matters, try during off-peak hours to help reduce the wait time. 6 Communicate if you plan to close an account
Don’t assume your bank account will automatically close an account if you zero out the balance. Contact the bank to see that the account is closed properly. Also, it helps to move any automatic bill payments over to a new account before closing the old one. The same applies to payments you receive such as direct deposit, Social Security or a pension. Not closing an account with a zero balance could result in overdraft charges if automatic bill payments haven’t been stopped, which ultimately can hurt your credit and make it more difficult to open other accounts. 7 Closing an account too soon could cost you
Reasons for closing a bank account include moving to a new location, switching to an online bank or finding better rates or a sign-up bonus elsewhere. It pays to know whether there’s a penalty for closing your current account, however. Some banks will charge you a fee if you close an account soon after establishing it. For instance, both KeyBank and Regions Bank charge a $25 early closure fee if you close your account within 180 days of opening it. Read the fine print if you wish to close an account soon after opening it. You might decide to avoid an account closure fee by waiting until the designated time frame ends while opening a new account elsewhere in the meantime. 8 Consider keeping your money in multiple banks
You might find the in having accounts at both a brick-and-mortar bank and an online bank. Many consumers stick with brick-and-mortar banks for the ability to visit a branch for in-person assistance with banking needs. Traditional banks may also have more robust ATM networks, giving you access to cash locally as well as throughout the country or world. A downside to brick-and-mortar banks, however, is they often don’t pay a competitive yield on deposit accounts. It’s common for a traditional bank to pay an APY of 0.01 percent on a savings account, while an online bank can pay up to 1.15 percent on a , making it a smart complement to a branch account. 9 Don t forget about that card you never use
You may have a credit card that goes unused for long stretches of time. A potential downside of closing such a card is it could affect your credit utilization ratio — the percentage of credit used compared with the amount that’s available — which could ultimately lower your FICO score. But some banks will close a credit card if it isn’t used often enough. One way to help prevent the bank closing such a credit card is to set up a recurring charge on the card, such as an insurance payment or gym membership. You might also find you don’t use your debit or ATM card often nowadays, since cash-only transactions are less common and making debit card purchases can mean you’ll miss out on and points. Making a withdrawal or purchase once every couple of months with your debit card may be enough to keep the bank from closing it. 10 Keep your bank account active
A bank may close your bank account if you aren’t using it often enough, and it may also charge a dormant account fee. Policies vary among banks, but a general rule of thumb is to use your account at least once every couple of months. Keep in mind that If you have a bank account that has gone dormant, it may have been sent to your state as abandoned or . Check with the state you live in for its abandoned property policies. Supply your bank with an up-to-date address so it can contact you if your account becomes inactive or dormant. Money sitting in an old account may have a yield that isn’t keeping up with inflation, and it could also be incurring a dormant or inactive fee. 11 Let your bank know when you re traveling
A declined credit card, debit card or ATM card transaction is the last thing you need when you’re on vacation. Each bank may have different policies, but you may want to err on the side of caution and let your bank know you’re traveling to avoid having transactions declined. You may be able to report this travel info to your bank through its app, or you can call to relay your travel dates and destinations. 12 Budgeting can help you save money
Knowing how much you spend is vital to achieve your savings goals, and a budget is a road map for getting there. Creating a budget and analyzing your expenses can help you find areas to trim your spending, such as recurring payments for services you no longer use. can add up over time, and so can annual fees. A tool that can help you is , which allows you to input your income and spending. , such as Mint, PocketGuard and YNAB, can help automate the process. SHARE: Karen Bennett is a consumer banking reporter at Bankrate. She uses her finance writing background to help readers learn more about savings and checking accounts, CDs, and other financial matters. Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. David Schepp is a wealth editor for Bankrate, focusing on deposits and consumer banking content. Related Articles