By Paulina Cachero
Roaring inflation is testing how loyal US consumers are to their banks.
With soaring prices stretching household budgets, consumers are increasingly switching banks as they hunt for better interest rates to boost their savings. Roughly 27% of retail banking consumers shifted some of their money from their primary bank to another institution in April, citing various reasons for seeking other options, according to a survey from J.D. Power.
“People are recognizing that inflation is increasing faster than their wages,” said Jennifer White, a senior consultant of global banking and payments at J.D. Power. “So, they’re searching for the ability to grow their money in a way that they are unable to do today.”
While customers were not necessarily dissatisfied with their experience with the banks, White said many think they can do better by shopping around. Americans under the age of 40 were more likely to have moved at least some of their deposit to another banking institution, but the trend was prevalent among consumers across generations.
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