By Sabrina Karl
Bank loyalty is the norm in America, even when you don’t know exactly what you’re getting, according to new survey data from DepositAccounts.com.
Responses from about 1,000 American consumers with a bank account show that 3 in 4 say they feel loyal to their bank (75 percent), and even more say no, they aren’t interested in switching banks (85 percent).
In fact, 40 percent of respondents reported they have never switched, with three-quarters of those adults saying it’s because they’re satisfied with their current bank.
Yet when asked what they earn on their savings account, almost half had no idea (47 percent). Not only that, but if asked what type of bank pays the best rates, 75 percent have it wrong.
About 4 in 10 believe traditional banks offer the best rates (41 percent), while 34 percent predicted you can earn the most at credit unions. Only a quarter speculated that online-only banks pay the highest rates.
Perhaps surprisingly, younger consumers were more likely to expect the most from traditional banks, with 63 percent of Gen Z and 55 percent of millennial respondents believing that’s where you can make the most of your savings.
In fact, however, an analysis of DepositAccounts.com’s data on thousands of banks and credit unions shows that the average APY earned by a savings account at an online-only bank sits at 1.52% APY. Compare that to 0.26% at traditional banks and 0.23% at credit unions.
Still, about a third of respondents said they wouldn’t consider opening an online savings account, with the most common reason being that they’re content with what they have (38 percent).
DepositAccount.com’s survey was conducted by Qualtrics in mid May 2019, among 1,005 U.S. adults with a bank account. Findings were released Aug. 5.