The first thing you need to make sure is that the bank is part of the Federal Deposit Insurance Corporation (FDIC). This institution will reimburse certain deposit types, even if the bank fails.
Fees
Once you have narrowed down the banks or credit unions that are FDIC insured, compare the fees involved. It is important to understand that you are seen as a consumer to a bank, so often they are competing for you to become a member with them and will offer lower fees than the next. There are many fees you will want to check and compare which include:
-Checks
-Interest rates
-Minimum balance
-Balance inquiries
-Statements
-Canceled Checks
-Live teller use
-ATM
Personal Advantages
You will also want to further research other details. Are there a sufficient number of ATMS in your surrounding locations? Is there overdraft protection? Overdraft protection helps stop your checks from bouncing by transferring money into your checking account from your savings when necessary. This can save you fees.
Another important question is whether online banking is available? In this day and age, many prefer to check their accounts daily, in order to watch over their spending and monitor how much is in their account. Also, this makes it easier and faster to pay bills through internet banking.
Some banking consumers feel that a credit union is a better choice. Credit Unions compete with banks, but are non-profit. They do not have stockholders to pay, which often allows them to give higher interest rates and charge lower fees.
Think of the Future
Many banks offer special rates for their customers on car loans and mortgages. If that is something you foresee yourself getting into, this may be a very real advantage for you in the future.
Check the rates for their savings accounts as well. Compare which bank has the highest returns. Any extra money that can be added to yours will only help your future expenses.
Don't Fall For the Perks
Because you are a consumer and these banks are competing for your money, many will offer “freebies”. While that iPod may look enticing now, you may actually be paying for it through banking fees, so be sure to check. Likewise, you should avoid choosing a bank because of an exciting credit card offer. The bank may offer high lines of credit making your spending seem limitless. The reality is, you will eventually have to pay for it at a higher fee.
When choosing a bank, be sure to check all fees and do not be afraid to research. It is your money and may be unsettling to trust it with someone else. As long as you make sure they are a member of the FDIC, and choose the best perks and lowest fees, then a bank can only aid in your financial future
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