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Managing your money in retirement isn’t just about focusing on investment accounts and Social Security status; It’s all about choosing the right bank. The financial institution that worked well during your working years may no longer meet your needs once you are living on a fixed income.
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In this ever-changing economy, high interest rates, evolving digital services, and rising bank fees have made retirement banking even more difficult. Retirees often require different features than younger customers, such as easy access to cash, reliable customer service, strong fraud protection and accounts that help their savings keep pace with inflation.
Christopher Stroup, Certified Financial Planner (CFP) and Owner silicon beach financialHere are five key signs you should consider switching banks in retirement. From outdated services to poor customer support, these red flags can affect your financial security and peace of mind.
1. High service charges
Since many retirees don’t keep most of their cash in regular checking or savings accounts, you may find that your bank is charging a monthly fee for not meeting the minimum requirement. Stroup suggested that if your bank is doing this around minimum balance requirements or for services that may be more affordable elsewhere, you may want to switch.
“As you move toward more fixed income in retirement, every dollar counts,” Stroup said.
2. Low interest rates on savings accounts
Additionally, interest rates remain high enough to make banks competitive in terms of rates. If you are not getting the best possible rate on your savings, another bank is easily ready to take your business.
“Paying excessive fees or earning little or no interest on your savings can impair your financial security,” Stroup said.
3. Poor customer service or lack of support
Because your financial needs may change radically in retirement, Stroupe said, you may need more personalized support, especially “when managing investments, accessing money quickly or troubleshooting account problems.”
He warned that if you are consistently experiencing long wait times, poor service or inadequate support, it may be a sign that your bank is not providing the level of service you need or deserve.
4. Limited online access or outdated devices
“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’s time to make the switch.
“Retirees often want to manage investments, review balances or transfer funds without leaving home.”
5. Inconvenient or inadequate ATM access
As you age, easy access to cash or the ability to bank without visiting a branch becomes more important, Stroup said. You do not become loyal to a bank just because you have been banking there for years. “If your bank doesn’t have an extensive network of ATMs or has a high fee for using another bank’s ATM, it can be frustrating and costly,” he said.
Although you’ll never want to be in a rush to move money around, do your research, compare, read the ins and outs and consider whether you’re getting the most from your bank.
Kaitlyn Moorehead Contributed to the reporting of this article.