Tim Grist Photos/Getty Images. Illustrations by Austin Coule Certification/Bankrate
The Big Bank merger began picking up steam in 2025, and history shows that it is not generally good news for savers. The recent wave of consolidation in the banking industry could spell out the issues of interest rates, account terms and overall financial choices.
As a reporter with a keen insight into banks that have covered finance for over a decade, I have seen how integration affects consumers in general. I break down what’s going on now, why it’s important to your savings, and what steps you can take to protect your money.
The merger wave is gaining momentum
Discovering a huge merger of Capital One and being on the ice under the control of President Joe Biden Approved Last month by US bank regulators. Less than two weeks after the announcement, numerous small, medium and large financial institutions announced their own transactions.
In April, nine US bank transactions totaling nearly $3 billion were announced, marking the highest total total since December 2021. According to Go to S&P Global Market Intelligence Data.
The data shows that banks are already responding to changes in the regulatory environment. By the end of February, 19 banking transactions worth a total of $985.5 million had been announced, up 50% from the same period in 2024.
We are not only seeing a steady pace of trading, but also seeing a fundamental shift towards a larger and more important merger.
Why is bank integration important for everyday Americans?
If history is a guide, when banks come together, it usually indicates that they reduced lower interest rates and saver options. 2011 study A study in the Federal Reserve Bank of Cleveland’s Bank Mergers Survey found that bank mergers’ deposit rates “fall immediately after the merger.”
This makes sense. Bank consolidation usually results in fewer institutions competing for consumer deposits. When competition is low, banks will have fewer incentives to offer higher interest rates or innovative products to attract and retain customers.
Consumers may have fewer options and less aggressive rates, especially as banks merge with local markets. Deloitte, a consulting company, 2025 Outlook The banking sector predicted that banks were paying customers for deposits.
Large, integrated banks often say they have more pricing power and brand strength and can offer lower deposit fees than their smaller competitors.
Deloitte hopes that several large banks will cut their deposit fees, relying on their strong balance sheets and establishing a customer base to stay competitive.
In contrast, small and local banks often acquired in integrated waves tend to offer higher rates to attract deposits. As these banks disappear, so does competitive fees.
Banks are also increasingly focusing on raising non-profit revenues, which are revenues from services and fees, such as checking accounts, ATM use, overdrafts, credit card fees, and asset management services fees.
Steps to protect your savings
Do not check if the merger will lower fees. Shop now. Online banks and credit unions often offer more competitive rates than traditional banks, even when rates fall.
What if your bank has already announced a merger?
If your bank is already at an M&A party, don’t panic. Bank mergers are common and usually take several months to finalize. However, it often results in changes to account terminology, fees, branch locations and customer service.
- Start by carefully reading all communications from the bank. Understand your account changes, especially regarding interest rates, minimum balances, or new charges.
- If you are unsure how your account or rates will change, call your bank or visit our branch and ask directly what to expect. Please request a written summary of the changes and do not be afraid to keep a record of all communications.
- Check your current account terms and compare them to what your competitors offer. Be aggressive: Shop high-income savings accounts, lower fees, or special promotions that other banks may offer to attract new customers.
- During the merger process, closely monitor your account for errors and unexpected changes. Migrations can result in technical defects, missed payments, or new fees.
- If you notice an increase in fees, lower services, or lower interest rates, don’t realize you’re switching banks or letting your bank know that you’re thinking of doing so. For more information, see the Bank Rate Guide for Switching Banks.
Conclusion
Bank mergers are bad for customers, especially when it comes to savings rates, features and account terminology.
This latest wave of bank consolidation is likely to accelerate, and could put downward pressure on interest earned on deposits.
By being informed, shopping and actively maintaining it, you can make the most of your money and make sure you are working as hard as possible. Don’t wait for the bank to make the first move. Manage today’s financial future.