Did you know that one in four Americans still use the same bank they did when they first opened an account? A recent survey by Talker Research, commissioned by the banking app Chime, looked at 2,000 U.S. adults with bank accounts and found that many people stick with their banks for a long time, despite missing out on better rewards.
The average person has been with their bank for about 17 years. Among baby boomers, 26% have been loyal for over 30 years. Interestingly, 36% of respondents haven’t even thought about switching banks. This might be because they don’t know better options exist.
More than a quarter of those surveyed (28%) don’t even know the interest rates on their savings accounts. Additionally, 30% are unaware that some banks offer rewards without fees. It’s striking that people deposit most of their income—68%—into their checking accounts, yet only 26% receive any meaningful rewards from those accounts. Instead, 52% rely on credit cards for perks.
In fact, four out of five respondents have at least one credit card, and many pay annual fees—around $1,000 on average. A significant number (22%) keep their fee-based cards simply because “that’s just how it is,” showing a lack of expectation for rewards from their banks.
Reward programs are important to many people. About 24% own credit cards for the rewards, even more than for building credit (20%) or emergencies (14%). Almost half of millennials (47%) say they need rewards just to get by. This sheds light on a broader issue: many Americans have low expectations when it comes to bank rewards.
Janelle Sallenave, Chime’s chief spending officer, pointed out that checking accounts handle most people’s money but often lack the rewards to match. “If your checking account is the central part of your finances, it should be working for you,” she said. A staggering 59% of credit card users would consider canceling if their checking accounts offered similar rewards.
Interestingly, many believe that rewards are only for those with premium accounts. Around 63% of respondents think only affluent customers enjoy the best benefits. This perception doesn’t reflect reality—nearly half (48%) think they shouldn’t have to pay for rewards.
Younger generations, especially Gen Z and millennials, are more accepting of paying for perks. Only 11% of Gen Z think rewards should be free, while 64% of baby boomers share that belief. Many respondents (38%) prefer to make direct deposits each month to earn rewards rather than maintaining a minimum balance (32%) or paying fees (8%).
Clearly, many people feel traditional banking needs a change. Over half of those surveyed (55%) agree that the banking system is outdated and requires a rethink. “For too long, rewards have been treated as a premium feature—but the average American should have access to these rewards,” Sallenave commented. Given that 39% of respondents say rewards are now the most critical factor in choosing a bank, it’s evident that banks must adapt to meet their customers’ needs.
In a world where banking is essential to daily life, the conversation around transparency and fair rewards is more important than ever. Making informed choices can lead to better financial outcomes for everyone.
Research Methodology: Talker Research conducted the survey of 2,000 Americans with bank accounts online from April 2 to April 8, 2023. A link to the questionnaire can be found here.
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Lifestyle,Personal Finance,banking
