Banking feels simple, until you realize your money’s stuck in a low-interest account, and you’re getting hit with surprise fees left and right. I’ve been there. I bounced between a friendly local credit union, a big-name bank, and finally, an online-only account that actually worked.
After all the trial and error, here’s what I learned: If you want your money to grow, skip the fees and low rates. A high-yield savings account is the move — and I wish I’d switched sooner.
Here are three costly mistakes I made, so you don’t have to.
1. Overlooking the limitations of a credit union
Starting out, I loved my local credit union. The staff knew me, fees were low, and it felt like a community. But I didn’t realize how limiting it could be. The small branch network meant I struggled to find ATMs when I traveled, which led to annoying out-of-network fees.
Worse, my credit card earned almost no rewards, so I missed out on cash back and points that I later found valuable elsewhere. Lesson? Don’t just go with the hometown feel — check the practical perks too.
2. Falling into the big bank fee trap
Next, not sure how else to choose a bank, I ended up at a big national bank that everyone has heard of. Sure, they had branches everywhere, and the app was slick. But I wasn’t prepared for how many fees piled up: monthly maintenance fees, overdraft charges, and ATM fees if I used machines outside their network.
Plus, my savings barely earned interest. It was like my money was working against me. I wish I’d paid closer attention to the fee schedule and shopped around sooner.
3. Being skeptical about online-only banks
When I first heard about online-only banks, I was hesitant. No branches? No tellers? I came from the world of small hometown feel, remember? No way.
But once I finally gave it a shot, everything changed. My new online-only bank had zero fees, high interest rates that actually helped my savings grow, and even reimbursed ATM fees. The app was seamless, and support was just a tap away. Honestly, my biggest mistake was not switching sooner.
What I’d do differently now
If I could start over, I’d focus less on brand names and more on what really matters: low fees, high interest rates, and convenience that fits my lifestyle. If you want face-to-face service, a credit union or regional bank can be great — just be aware of their limits. But if you want your money to grow and hate unnecessary fees, online banks are hard to beat.
The best part is, you can switch anytime. Don’t get locked into a bank that doesn’t work for you.
And if earning more on your savings is your top priority, our top picks combine high rates with minimal fees. Ready to upgrade your account? Check out our best high-yield savings accounts and make your money work harder for you.
