Money
6 reasons you should probably switch your bank
If the bank fees are too high, the service too low, or you’d rather queue than use your banking app, it might be time to move on. If you don’t trust your data is secure, it’s definitely time…
By Bron Maxabella
Let’s be honest, most of us don’t think about our bank too much. We set up an account years (or decades) ago, and as long as the money goes in and comes out as expected, we don’t see much reason to change.
But banking has changed a lot in recent years. Newer, digital-first banks are offering better deals, faster service and much smarter ways to manage your money.
So if you’re still with the same bank you’ve been with since forever, it’s probably time to ask: is my bank really working for me?
Here are 6 important questions to ask about your current bank that reveal why switching might be the best financial move you make this year.
1. Are their fees reasonable?
Bank fees can be sneaky. A little monthly account fee here, an ATM withdrawal fee there, and suddenly you’re paying hundreds of dollars a year – just to access your own money.
If you’re looking to save more for retirement, keeping your money in a low-fee account makes a big difference.
A digital-first bank like AMP Bank, ING or ME usually won’t charge monthly fees and there are often no minimum balances or required monthly deposits attached to that.
2. Are their interest rates competitive?
Your money should be working for you, not sitting around earning next to nothing.
Traditional banks often offer lower savings interest rates compared to newer, more competitive banks. A higher interest rate on savings accounts and term deposits, means your money grows faster without you having to do anything extra.
If you’ve got a mortgage, check your interest rate there too. The ‘big 4’ banks (who own the majority of Australia’s mortgages) have been widely criticised for profiteering unnecessarily.
“A lack of competition among the big banks has come at the cost of home owners,” said Greg Jericho, Chief Economist at The Australia Institute.
“The big 4 are generating massive profits from home loans that far exceed the level of risk the banks undertake.”
If you haven’t recently checked what interest rate you’re earning on your savings or paying on your mortgage, now’s the time.
3. What’s their level of security protection?
Scams and fraud are on the rise, and your bank should be proactively protecting you—not just reacting when something goes wrong.
The best banks now offer:
- Numberless debit & credit cards – AMP Bank is the first Australian bank to remove card numbers from their physical cards to help prevent both in-person and online theft and fraud.
- Multimodal biometric authentication – Extra layers of security to stop scammers from accessing your account.
- Real-time fraud detection – AI-powered systems that flag suspicious transactions instantly.
- Instant card locking – If you lose your card or notice suspicious activity, you should immediately be able to lock or cancel it yourself (see below).
If your current bank isn’t actively protecting your money, it’s time to find one that does.
4. Do they offer an intuitive, easy-to-use app?
A proper purpose-built banking app is a game-changer. In fact, get to know yours well and you’ll understand why I don’t think in-person banking was the “good old days” – because we’re living them now.
Look for features that let you:
- Manage all of your accounts – Whether you're checking your balance, transferring funds, paying bills, or setting a savings goal, you want to be able to do it all in one place.
- Categorise your spending – Easily see where your money is going on a category level (groceries, housing, utilities, etc) and also drill down to see the merchants you’re spending with and how that’s varied over time.
- Create different savings ‘buckets’ – Want to save for a holiday, an emergency fund and Christmas presents separately? Make sure your banking app can help with that. For instance, AMP Bank calls this functionality ‘Spaces’ and it means you can move your money around in just a few taps. Their ‘Round Ups’ feature also means you can round up your spending to the nearest dollar and send the spare change to your chosen Space - too easy.
- Track your budget at a glance – You want clear, simple insights into your finances so you don’t have to spend any longer than necessary doing your budgeting.
A great banking app isn’t just about convenience – it helps you stay on top of your finances and make smarter money decisions.
5. Do you have instant access & control over your money?
Life happens… on the daily. Sometimes you lose your card; sometimes you need to block a dodgy transaction; sometimes you want to set spending limits to help curb impulse buying (I’m looking at you, online shopping!).
And you want to be able to immediately sort all of that out yourself without having to call the bank.
I once spent the most stressful 47 minutes you can imagine on hold with my old bank while I watched transaction after transaction get added to my credit card from a store in Ouagadougou. And no, I’ve never been to Burkina Faso.
So, make sure your bank gives you instant control over your account via their app, allowing you to:
- Lock, block, or cancel your card instantly if it’s lost or stolen.
- Set spending limits for certain transactions (like online shopping or entertainment).
- Turn on a gambling block if you want to prevent betting transactions.
If your current bank makes it hard to manage your money in real-time, it’s time to switch.
6. How’s their customer service?
With more and more physical banks shutting their doors or reducing their hours, the days of in-person banking will soon be behind us. Now I haven’t personally set foot in a bank since the mid-90s, but if the “good old days” of customer service in banking matter to you, all is not lost.
Many newer banks have managed to replicate the personable, supportive experience virtually. Think 24/7 customer service with real people you can reach online, over the phone, or via live chat.
If you’re sick of the service you’re getting at your current bank, it might be time to find one that actually values your time and your business.
Feature image: iStock/LordHenriVoton
This article reflects the opinions and experiences of the author and does not necessarily reflect the views of Citro. It contains factual information only. It is not financial advice and is not intended to give any recommendation or opinion about financial products. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their financial circumstances, objectives and needs.
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