By: Daryl Tolliver
Consumers are selective about the institutions they bank with, and making a decision about whom to entrust their retirement, income and loans can be a difficult one for many adults. So when individuals are considering severing a relationship with a bank and moving on to an institution that offers more affordable products and services, there are a few specific factors they typically look at when making their decision.
One of the most common indicators that prompt consumers to make the switch are high fees, primarily ATM expenses, according to personal finance website MainStreet.com. A recent Bankrate.com survey shows ATM costs rose in 2011 and are expected to remain a strong source of fee income for big banks trying to fill shortfalls and profit losses that will result from changes included in the Durbin Amendment. Bankrate.com senior financial analyst Greg McBride urges consumers who are weighed down by ATM fees to consider community banks, credit unions and online banks, many of which are exempt from the Durbin Amendment and are less likely to impose significant fees.
In addition to avoiding fees, many consumers are turning their backs on frivolous spending and focusing more on developing a healthy savings account. As a result, more Americans are looking for a better return on their savings deposits than in prior years and are likely to gravitate toward banks that can offer them competitive rates, MainStreet.com reports.
"Generally speaking, smaller banks, online banks and credit unions offer much more favorable rates on deposits, so it may be worth checking out what's being offered in your area," wrote MainStreet columnist Jeanine Skowronski.
Lastly, cosumers are interested in incentives and cash rebates, which may prompt them to turn toward banks or credit unions that offer reward programs and other types of financial bonuses.