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Most people reach a point in their life when they need to choose a bank where they can keep their money. To some, choosing a bank is no big deal. However, for others, it is an important decision that they have to make, especially since it concerns their finances. Banks have different qualities and offerings that set them apart from each other, and you must consider these when choosing the right bank for your needs.
Things to Consider when Choosing a Bank
Fund Security
The first thing that you have to consider is the security of your money. You cannot merely hand over your money to an institution without knowing whether it would be safe or not. Check whether the bank has insurance from the Federal Deposit Insurance Corporation (FDIC). Do not open an account with a bank that does not have this.
Fund Availability
The immediate availability of funds is also a crucial factor to consider, especially if you need funds in the event of an emergency.
Usage Fees
As much as possible, do not open an account with a banking institution that has a charge for doing basic account transactions. Check if they have charges for in-branch services, monthly fees, or check deposit fees.
Accessibility of Banks
If you need to do banking transactions regularly, it might be best to open an account with a bank which has a branch that is easily accessible from your location.
Deposit Options
If, on the other hand, you need to deposit cash or checks, it might be best to check their deposit options. Do they have partnerships with virtual payment terminals so you can easily integrate them into your online business? This option would allow you to streamline your financial transactions. What other online banking features do they have? Will it be easier for you to settle your bills online? Will they charge you for online transfers?
ATM Use Charges
If you are the type of person who regularly uses an ATM for purchases and payments, make sure your bank of choice would not charge you for every transaction you make. Don’t forget to check inter-bank fees as well.
Interest Rates
When comparing interest rates among banks, check for two things: the interest rates that your money will earn from your deposits and the rates that you have to pay should you apply for a loan. Note that your credit score can factor in when applying for a loan. The higher your credit score, the better the rates you can get. In general, you should look for a bank that has higher interest rates on deposits and lower rates on loans.
Minimum Monthly Maintaining Balance
Some banks require their depositors to maintain a monthly balance in their accounts. If the deposit amount is less than that, the bank can charge a service fee on your account. Only open an account with a bank if you can commit to maintaining that balance requirement. If not, you might end up paying fees.
Customer Service Support
Customer service is something that you should factor in when choosing a bank. When you encounter problems with your funds, your bank should be able to help you resolve it without much hassle.
Saving money in banks is an excellent way to ensure that you can manage your finances the best way possible. If you can get a passbook or a monthly statement from your bank, the better. The summaries of your transactions can help guide you in assessing your finances as it can show you how often you are depositing and withdrawing from your funds. It is also an excellent way to see where you are in your financial journey.
