Surprise! Americans actually like their banks

In the aftermath of the Great Recession, perhaps no two words elicited as much disgust as big bank. When it comes to our own personal finances, though, Americans seem pretty content.

Americans have been with their primary bank for an average of almost 11 years, according to a USA TODAY Blueprint survey, and 85% say they’re either happy or very happy with what they have. In fact, just 42% of Americans report ever switching banks.

This loyalty has outlasted a period of upheaval. From the 2008 financial crisis to the post-COVID inflation spike, the economy has gone through a series of spasms. And yet, regarding their personal bank, most Americans are content to love the one they’re with.

“Sometimes the existing relationship and not risking worse service is a compelling reason to stay,” said Matt Fizell, owner of Harmony Wealth, a fee-only RIA located in Madison, Wis.

Key points

• Americans have been with their primary bank for an average of 10.8 years.
• 85% of Americans say they’re happy or very happy with their primary bank.
• Just 27% of Gen Z respondents have ever switched banks.
• Only 42% of people have switched their primary bank.

Americans stick with one bank

People in the U.S. loathe changing their banks. The typical American sticks with their financial institution for almost 11 years. Imagine the headache of moving checking accounts, filling out bank forms and contacting the human resources department so you can receive your paycheck.

Once the relationship between customer and banking institution is established, it’s difficult to shake. The typical member of the silent generation has been with their financial institution for 16 years; even the youngest adults, Gen Z, have been with their banks for four years.

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When people do switch banks, it tends to be within the first decade of the relationship. Among those who have been with a bank for less than 10 years, 47% have switched an account, compared to 39% of those who have been with a bank for longer than that period.

Americans are happy with their primary banks

One reason often cited to explain why Americans tend to stick with their primary bank is inertia. Picking a better bank account seems, according to this theory, not worth the effort.

Another reason might be that Americans actually like what they have.

In our study, 85% of respondents said they’re either somewhat happy or very happy with their primary bank, while only 4% saying they were unhappy with their banks. (Another 11% were indifferent.)

While bankers of all ages are happy with their options, older Americans are especially so.

When looking at the separate elements that make up the banking experience — from mobile banking to customer service, ATM access and fees (or, preferably, the lack thereof) — Americans are happy with what they receive.

Quick tip. Many online banks and credit unions are members of an ATM network, giving access to thousands of fee-free ATMs nationwide.

The banking area with which Americans are the least pleased is the interest on their high-yield checking accounts. However, even in that field, 59% said they were very or somewhat satisfied.

How Americans choose their bank 

When selecting a bank, our survey respondents indicated their biggest concern was avoiding hidden fees. Other factors included convenience, customer service and fraud protection.

Surprisingly, the interest on a high-yield savings account or a certificate of deposit (CD) tied for a distant seventh.

This helps explain why someone may stick with a national bank, even when they can find higher yields from online banks; as long as they’re not paying onerous fees and can access their accounts easily, they may not be inspired to make a change.

Quick Tip. Consider changing your savings account or CD if the yield you are earning is about 25% less than what the top accounts offer.

“If your bank offers options for your savings, like high yield accounts, and you like the way you can interact and bank with it, then there's very little need to switch,” said Ryan Derousseau, a Huntington, New York-based certified financial planner.

Americans trust their own bank, but maybe not yours…

A factor of trust strongly correlated with likability: 86% of respondents said they either somewhat or strongly trust their primary bank. You wouldn’t bank with a financial institution that showed signs of going belly-up.

Interestingly, though, only 64% trust the banking industry as a whole.

The topsy-turvy environment over the past few decades may explain that gap of 22 percentage points. From the housing bubble bursting and bank bailouts to the Wells Fargo account fraud and recent bank failures, the banking industry has seen its fair share of drama.

Tips for switching banks

Even if you are happy with your bank now, that may not always be the case. Here are a few tips on what to consider when picking a new bank.

Yield. If you’ve had the same savings account for 15 years, there’s a chance that it’s not paying as much as the best options on the market. While the opportunity cost of missing out on high yields isn’t that great when you’re just starting out, it can mean real money once you’ve accumulated some savings.

“If you have $1,000 in savings, over the course of a year you may see an additional $30 if you switch from a 2% account to a 5% account,” said Derousseau. “But if you have $20,000 in an account, then the yield difference really matters, as that's a $600 difference.”

Bonus. Some financial institutions, such as Chase Bank, offer promotions to entice new customers. If the account is one that works for you irrespective of the bonus, this can be a lucrative step, netting hundreds of dollars if you qualify. But that’s an important caveat to consider.

“If there is an intro offer to get a bonus, make sure that you read the fine print,” said Fizell. “Some banks offer juicy incentives, but will require certain elements to make the bonus valid. Something I missed once was ‘you need to have two direct deposits from a qualifying payroll provider’ in order to get the bonus. As a self-employed person that doesn't need to run payroll, I literally couldn't do this.”

Branches. Online banks tend to offer the best free checking accounts on the market, but this can be a no-go for those who earn their income in cash or strongly prefer in-person banking. If you need to see a teller on a regular basis, that trade off makes sense.

However, if most of your banking is digital, consider opting for an account that typically charges lower fees and higher yields, even if there is no branch.