How to choose a bank: 6 characteristics to look out for

If you are looking for a new bank, you need to look at the products they offer, the fees and interest rates they charge, and the detailed lettering. It is also advisable to read online reviews and evaluate the suitability of the bank’s features for your lifestyle.

Choosing a bank is a daunting task, and with so many options out there, it can be difficult to choose the best one for you.

Before falling into decision paralysis, take the time to sit down, consider your options, and consider which bank features are best for you.

Not all banks are right for you, so explore what is there, what you need, and even what you don’t want.

Fortunately, with a little effort on your part (and this guide), you’ll be well on your way to choosing the right bank for you, whether you’re looking for a credit union, bank, or online organization.

Here are six steps to choosing the right bank for you.

1. Ask about available bank accounts

Not all banks are built the same. When choosing a bank, you need to make sure that it offers the right products for you. These can be checking accounts, savings accounts, and any other specialized account that you need, such as a business account or an investment account.

If you are interested in certificates of deposit, you should check if the prices match what you are looking for. Moreover, if you want to have a prepaid checking account, you must look for a bank that meets this goal.

If you are also looking for a mortgage, auto loan or personal loan, ask what is available and what options or packages are available to you as a new customer.

2. Check fees and interest rates

Hidden fees can cost you a lot of money.

For example, some banks charge a management fee for checking accounts. Also, if you receive a late direct deposit, you may have to pay an overdraft fee.

Ask what types of fees are charged, how much they are, and what types of overdraft protection are available. If you are thinking of outputting a Credit card With your new bank, also check these fees carefully.

Interest rates should also play an important role in your selection. How do these rates compare to the competition?

Note that online banks are often able to offer higher interest rates and lower fees. This is because they save overhead by not having a physical location, and they pass those savings on to their customers. They can offer a high-yield savings account that exceeds the interest rates of other banks and credit unions.

Consider fees and interest rates — management fees, for example, can negate the gains of an attractive interest rate.

3. Read the details when choosing a bank account

Banks are required to disclose certain information to anyone who opens an account or obtains a loan. These fine prints can help you understand how due dates, late payments, and other account characteristics affect you.

You better know yourself when it comes to those fine prints. If you’ve had late payments in the past, find a bank whose fine print includes a generous grace period to get you back on track quickly.

The fine print will also include promotional prices or promotional terms. These are interest rates or fee structures that are usually very advantageous at first, but change after a certain period of time – usually between 6 and 18 months.

For example, a credit card with an introductory interest rate of 0% might sound attractive, but you need to know when the interest rate drops to 18% so you can plan accordingly.

4. Choose the bank that best suits your lifestyle

There are a few general categories of banks to consider, and some will be more relevant to what you want than others.

• Small credit unions Locals are often invested in the local community and have a place where you can meet someone and ask questions.
• Online banks They may not have personal customer service, but they make up for it with transparent accounts with no fees and high interest rates on savings accounts.
• conventional banks It offers a mixture of the two, with personalized customer service for those who want it, but sometimes with a broader product range.

It is important to think about how you will use this bank. For example, if you like the idea of ​​starting a small neighborhood credit union but know you’ll need to deposit checks by your cell phone small companyIt might be better to go to a major bank that offers this service.

Weigh your goals and needs and don’t be afraid to ask questions before you commit.

5. Read online reviews to see what other customers have said

Any bank or credit union will likely have good and bad reviews online. The goal is not to examine what each person says, but to see if bad comments contain any red flags.

a Customer service Strict and unpleasant enforcement of rules or misleading advertisements on accounts are all good reasons to look elsewhere.

The reviews provide valuable insights beyond the purely positive messages of the bank’s own website.

6. Find additional products and services that you can use

Beyond the accounts themselves, many banks today offer a whole host of additional options that can be very beneficial to you – enough to make the decision to go for them.

Several products and services, new or traditional, may interest you:

• Some credit unions offer a machine that sorts the change and gives you money in return.
• Some banks offer a benefit when opening a new checking account, for example 200 euros if you make 10 debit transactions in the first two months.
• Some banks indicate how they invest, particularly in environmental, social, government or socially responsible investments. If you want to invest your money in this way, ask the banks what they are doing in terms of social responsibility.
• If you use ATMs often to withdraw money, the ease of getting charged is great. Make sure there are working ATMs that you can use in the places you frequent.
• Most banks and credit unions have an app today, but not all are created equal. Check to see if your potential bank’s app includes features like easy tech support and software that facilitates person-to-person money transfers.

The best banks that are worth considering

It can be hard to know where to start, but luckily we’re here to help. Here are some of our favorite banks to consider as you begin your search.

revolution

If you want an online bank that meets all the requirements – a very practical and useful application, revolution is a good choice.

The bank is online only, but they keep their fees low and provide excellent customer service.

Note that Revolut offers three credit cards (Plus, Premium, and Metal).

MaFrenchBank

you may know MaFrenchBank for its credit cards, but also offers a full range of products as an online bank. Prices are good, but the most notable feature is that customer service is highly appreciated.

She has also been recognized for the excellence of her work environment, which seems to translate into very satisfied customers.

Conclusion

By following these simple steps, you can be sure to find the best bank for your needs. And don’t forget to read the reviews before making your final decision – they can give you a good idea of ​​what it would be like to deal with a particular bank.

Considering all of your options before making a decision is the best way to ensure that you get what you pay for.