Survey: Many consumers stick with same bank accounts for decades, cite convenience as a factor

These days, the perks of a shiny new bank account often include high yields and no fees, and many can be opened in mere minutes. Nevertheless, Americans with a checking account have held onto that account for an average of 19 years, while those with a savings account have had it for 17 years, according to Bankrate’s latest Checking Account Survey.

When asked why they’ve stayed with the same bank, 43% of checking account holders gave responses that valued the convenience of staying put, citing reasons such as it’s the same account they’ve always had and switching is a hassle.

Note that when it comes to the length of time a checking account is held, the survey average of 19 years reflects a blend of two subsets:

• 19 years for banks or credit unions that offer in-person locations

• 6 years for online-only financial institutions

Similarly, the average of 17 years that consumers have held savings accounts comprises:

• 18 years for banks or credit unions that offer in-person locations

• 6 years for online-only financial institutions

Ted Rossman, Bankrate senior industry analyst, says it’s important to re-evaluate your bank accounts periodically. “Things change over time,” he says.

Tips for changing financial institutions

If you’d like to determine how your bank account stacks up against the competition, compare factors such as the following:

Fees: Being charged monthly service fees or out-of-network ATM fees can really eat into your balance. It’s not difficult these days to find free checking accounts, as well as those that don’t charge customers for using ATMs outside their network. What’s more, many will reimburse ATM surcharges you incur from other banks for using their ATMs.

Interest rates: When it comes to savings accounts, the top high-yield savings accounts are currently earning more than 4.50% annual percentage yield (APY). Such high-yielding accounts are commonly offered from online-only banks, which may pass along the savings of not having to maintain branches. Conversely, big brick-and-mortar banks commonly offer rock-bottom APYs.

“Online banks often offer higher savings rates – the top yields are close to 5% right now, whereas the largest brick-and-mortar banks tend to offer something like 0.01 or 0.02%,” Bankrate’s Rossman says. “It can be a hassle to switch your primary checking account and reset all of your bill payments and direct deposits, so a good approach is to link the local checking account to an online high-yield savings account. That represents the best of both worlds.”