A growing number of bank, credit card and investment customers are “quietly” moving their accounts to different institutions by keeping their existing accounts open while transferring most of their activity to a new account, according to a new survey by J.D. Power.
The survey found that roughly half of new checking (52%) and investment (48%) accounts opened were additional accounts, and 65% of new credit cards opened were additional cards. Among customers who previously had a checking account, 72% of accounts were opened with a different bank.
“That 72% is noteworthy because, while customers won’t necessarily close their old account, many are treating the newly opened account as their primary,” according to J.D. Power. “Half (54%) of additional and replacement checking accounts opened with a different firm become the primary account.”
“Convenience” was cited by respondents as the main reason for opening a new checking account, followed by “good reputation,” “no fees/lower fees,” “promotional offer” and “perks or rewards.”
