12 Ways To Bank Smarter And Put More Cash In Your Pocket

Banking doesn’t have to be complicated. With thousands of banks offering different products and rates, it’s easy to feel overwhelmed. But the truth is, a few simple strategies can help you earn more money and avoid costly mistakes.

These banking tips will show you how to make your money work harder without changing your entire financial life.

How banking tips and strategies can help you

Smart banking habits offer real benefits that add up over time:

• Earn more on your savings: The right accounts can help you earn significantly more through competitive interest rates
• Pay fewer fees: Avoiding unnecessary charges keeps more money in your pocket
• Stay organized: Good banking habits make it easier to track your money and reach your goals
• Protect your credit: Proper account management helps you avoid problems that could hurt your credit score
• Save time: Smart strategies reduce the hassle of managing your money

1. Reevaluate your bank

The average U.S. adult has had the same bank accounts for decades, according to a 2025 Bankrate survey. Many people stick with their bank because it doesn’t charge fees or because switching seems like too much work.

But staying loyal to your bank might be costing you money. Banks constantly introduce new products and better rates that could benefit you.

Expert Insight

Just don’t fall asleep at the switch. The marketplace is constantly changing with new offers, innovative products and features that might put more money in your pocket or make your life easier. Or both. So it pays to have your antenna up and be on the lookout for something that is a better deal or works better for your financial lifestyle.

— Greg McBride, CFA, Bankrate chief financial analyst

Look at the fees you’re paying and see if you can avoid them. If your bank requires a high minimum balance, check out high-yield checking accounts with lower requirements. These accounts often come with free ATM access and large ATM networks.

Ready to find a new bank? Check out Bankrate’s best banks to compare your options.

2. Don’t assume your bank is giving you the best rate

Just because your bank appreciates your business doesn’t mean it’s paying you competitive interest rates.

“People just assume that their bank is going to do right by them and give them what they should be getting,” says Elizabeth Buffardi, a certified financial planner in Oak Brook, Illinois.

The Federal Reserve has raised interest rates 11 times since March 2022. This means many banks now offer much higher yields on savings accounts and CDs. It’s a great time to shop around.

Top savings rates are actually beating inflation right now, which means your money can grow in purchasing power. You can find online banks with high-yield savings accounts that pay rates many times higher than the national average.

3. Don’t let a high rate fool you

When you see a high annual percentage yield (APY), don’t get too excited until you read the fine print. The APY shows what you’ll earn per year, but there might be catches.

Here’s what to watch out for:

• Promotional rates that only last a few months
• High minimum balance requirements
• Fees that eat into your earnings
• Different rates for different balance levels

Look for banks that offer consistently good rates, not just flashy promotional offers that disappear quickly.

4. Consider a CD for a higher, fixed APY

Today’s top savings accounts and money market accounts can earn more than 4 percent APY. We haven’t seen rates this high in over a decade.

In the current rate environment, top one-year CDs generally have higher yields than five-year CDs.

CDs can lock in today’s high rates, but remember that they typically require higher minimum deposits than savings accounts. Plus, if you withdraw money early, you’ll face penalties that can eat into your earnings.

If you’re not sure about locking up your money, stick with a money market account or high-yield savings account that gives you easy access to your funds.

5. Strategically plan your bank interactions

Planning ahead can save you time and frustration. Instead of just showing up at a branch, call ahead for important matters. If you need help with a mortgage, make sure a mortgage specialist will be there when you arrive.

Other time-saving tips:

• Handle simple transactions online when possible
• Call customer service during off-peak hours for shorter wait times
• Use mobile banking apps for quick account checks
• Schedule appointments for complex needs

A little planning goes a long way toward making banking less stressful.

6. Communicate if you plan to close an account

Don’t assume your bank will automatically close an account when you take out all the money. You need to contact the bank directly to close it properly.

Before closing any account, move your automatic bill payments to a new account. Do the same for any money coming in, like direct deposit or Social Security payments.

If you don’t close an account properly and automatic payments keep going through, you could get hit with overdraft fees. These fees can hurt your credit and make it harder to open accounts elsewhere. Check out Bankrate’s guide to closing a bank account to learn more.

7. Closing an account too soon could cost you

There are good reasons to close bank accounts — maybe you’re moving, switching to online banking or found better rates somewhere else. But timing matters.

Some banks charge early closure fees if you close an account soon after opening it. For example, Regions Bank both charge $25 if you close your account within 180 days.

Read the fine print before closing a new account. You might want to wait until the penalty period ends while opening your new account in the meantime.

8. Consider keeping your money in multiple banks

You might get the best of both worlds by using both a traditional bank and an online bank.

Many people like traditional banks because they can visit a branch for help with complex issues. These banks often have large ATM networks, making it easy to get cash when you need it.

But traditional banks usually don’t pay competitive rates on savings accounts. It’s common for them to pay just 0.01 percent APY while online banks pay more than 4 percent on high-yield savings accounts.

Using both types of banks gives you convenience and earning power.

9. Don’t forget about that card you never use

If you have a credit card sitting in a drawer, you face a dilemma. Closing it could hurt your credit utilization ratio and lower your credit score. But some banks will close credit cards that aren’t used enough.

Keep unused credit cards active by setting up small recurring charges like:

• Insurance payments
• Gym memberships
• Streaming services

You might also rarely use your debit card anymore since cash is less common. Making a small purchase every couple of months might be enough to keep the bank from closing it.

Just remember that using debit cards instead of credit cards means you miss out on credit card cash back and rewards.

10. Keep your bank account active

Banks can close accounts that sit unused for too long, and they might charge dormant account fees. Rules vary, but using your account at least once every couple of months is usually enough.

Remember that small, regular deposits into savings add up over time and keep your account active.

If you have an old account that’s gone dormant, it might have been sent to your state as unclaimed property. Check with your state and make sure your bank has your current address.

Money sitting in old accounts might earn terrible rates and could be getting hit with fees.

11. Let your bank know when you’re traveling

Nobody wants their card declined while on vacation. Banks have different policies, but it’s smart to let yours know about travel plans to avoid fraud blocks on your cards.

Many banks let you report travel through their mobile apps, or you can call with your dates and destinations. This simple step prevents embarrassing card declines when you’re away from home.

12. Budgeting can help you save money

Knowing where your money goes is crucial for reaching your savings goals. A budget shows you exactly where you can cut back.

Creating a budget helps you find expenses to eliminate, like:

• Subscriptions you forgot about
• Services you no longer use
• Annual fees for things you don’t need

Bankrate’s banking calculators can help you make smart money decisions. Try the savings calculator to see how your money can grow or the compound interest calculator to understand the power of earning interest on your interest.

Bottom line

Smart banking doesn’t require a complete financial overhaul. Small changes in how you handle your bank accounts can lead to big savings over time.

The key is staying active about your banking choices instead of just accepting whatever you have now. Whether it’s switching to a high-yield savings account, using multiple banks strategically or simply keeping better track of your accounts, these simple strategies can make a real difference.

Start by looking at your current banking situation and pick one or two strategies to try. Small changes today can mean more money in your pocket tomorrow.