5 Signs You Need to Switch Your Savings Account

5 Signs You Need to Switch Your Savings Account

You have a savings account…great! Now, tell me this: are you making the most of it? The simple fact of having a savings account is certainly a step in the right direction, but it’s not the only step. If you aren’t making the most of your savings, it may be time to switch your savings account.

The good news? There are plenty of GREAT options out there to serve all of your saving needs. I’m sharing 5 signs you need to switch your savings account ASAP. If any of the scenarios below apply to you, then make the switch.

If you aren’t one to change things around, I will forewarn you that the change may take some getting used to. However, once you get used to it, you will be so happy you made the switch. Your savings will grow, you won’t touch it as much, and you will be making the most of your savings!

Sign #1: You keep touching the savings you currently have

The entire purpose of a savings account is not touch it. If you are saving for something specific, then that savings should only be touched when appropriate.  Savings designated for rainy days and emergencies only? Then you should not be tapping into it unless a dire emergency takes place.

When you are constantly dipping into your savings, you are defeating the purpose of it. You are also hurting your future self. When a true need for that savings comes up, you will regret having touched it.

Are you tapping into your savings because you overspend the money in your checking? Get your budget and spending in order! You can also make your savings account harder to get to by keeping it with an entirely different bank – preferably with an online bank.

Sign #2: You are earning pennies in interest…literally

Another sign that you need to switch your savings account is if you aren’t earning any interest. Obviously, the more money you have saved the more interest you earn. However, if your savings account is with a major bank (Wells Fargo, Bank of America, Chase, etc.) then you are not making as much as you can.

Make the switch to an online savings account with Synchrony, American Express Bank, or any other online bank and you will earn significantly more in interest.

Why not make more money just by having your savings with a different bank? Check out Best Savings Account Interest Rates to see the night and day difference in what you can earn. You may as well make as much money as you can!

Sign #3: You pay a monthly fee for your savings

Never…ever…should you pay a fee to have a savings account. Most major banks, like the ones listed above, love charging fees. It’s what keeps them in business! Most fees can be avoided by meeting certain requirements like minimum balances, a certain number of transfers, or other factors.

While it may not be hard to meet the requirements to keep your savings account free, why worry about it in the first place? Once again, an online savings account comes to the rescue! Most savings accounts offered by online banks have no requirements. Not to mention, none of them charge you fees!

Sign #4: Your savings is linked to your primary checking account

It’s safe to say that your savings account should not be linked to your checking account, for a variety of reasons. Here are just a few of the reasons:

  • A simple transfer can result in less money in your savings
  • When you peak at your checking, you automatically see your savings – giving you a sense of comfort that money is there (even if it shouldn’t be touched)
  • It’s way too easy to get to

You want to set yourself up for success, right? Well, keeping your savings so close to your checking makes it harder for you to succeed. I’m not saying that you shouldn’t have reserves on hand in case of a very quick emergency.

I’m saying that your primary “no touch” savings should not be anywhere near your checking account.

Sign #5: You have a minimum balance requirement for your savings

When you are just starting out on your savings journey, there isn’t a balance! It’s not fair for a bank to require you keep a minimum amount in your savings at all times. Whether you have the money or not, you should not be forced to keep it in your account. What if you needed it and couldn’t quickly replace it?

If your bank requires you to keep a minimum amount in your savings account at all time, it’s time to switch your savings account. Consider a credit union (only if you aren’t sold on the thought of an online savings account). Most times, credit unions have very minimal balance requirements.

Related: CGS Podcast Episode #24: 18 Ideas to Save More Money


There is absolutely no excuse for you to succumb to the rules of a major bank. Your savings is yours, and you should get the most out of it! If any of the 5 signs above apply to your situation, don’t be afraid to make the switch. You will be better off for it in the long run!

Are you victim to any of the signs listed above? Have you already made the switch to an online bank? If so, where and what do you think of it so far? Share your savings account fears, stories and questions by posting a comment below!

The CGS Team



2 thoughts on “5 Signs You Need to Switch Your Savings Account”

  1. Been using allybank for a while now. Interest increases with amount of money in your savings. If you take money out from another bank’s atm using the debit card connected to your savings they reimburse you for the fee. Love them

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