Are you looking for a new bank? If so, there are a lot of factors that you should consider before you open a new account or switch your account over. From checking account fees to interest rates, here are some things to consider before you open a new account somewhere!
Checking Account Fees
Firstly, consider how much a bank charges for checking account fees. Any fees at all are less than ideal, but you would prefer to at least get something in return if the account does cost you money to keep open. This could include cash back or an interest rate that returns some money to you.
Overdraft Fees
If you set up automatic payments on your bills, you probably know the sting of overdraft fees. These can chew up your paycheck before it ever arrives. Make sure you know a bank’s overdraft policy. Do they charge you if your checking account is emptied out by a transaction but your savings account can cover it? Questions like these are a big deal!
Savings Account Interest Rates
Do some research about a bank’s savings account interest rates. You’re better off putting your money into a savings account with a higher interest rate so you can reap more rewards from it over time. This one is pretty simple: the bank with the best interest rate here usually wins.
Customer Service
If you’re going to be spending a lot of time visiting your bank in person, you’ll want to check on their customer service ratings. Some banks are renowned for their friendly tellers and loan officers, who can make things much easier for you by walking you through their products. Others are a bit more clinical, offering little in the way of advice or coaching for their customers.
Bank Hours
It might sound silly, but you’re going to want a bank with hours you can actually make it to. If you’re always at work when your bank is open, that means you’ll need to spend valuable time away from work to visit your bank if something goes wrong with your accounts. This is quite stressful! Consider banking with an institution that actually fits your schedule.
The Apps
These days, a lot of normal banking tasks can be handled online. How good is your bank’s online banking app? If it’s looking a little dated, you could consider checking out the digital offerings from their competitors. For some people, the quality of a bank’s app is the biggest factor in keeping their money in a different account!
Rewards Accounts
Some banks offer rewards checking accounts to compete with popular reward credit cards. These can offer points to be exchanged on things like hotel room or airfare discounts. If you’re already accustomed to using a rewards card, consider checking out a bank’s similar checking account offerings.
Loan Options
Some banks offer better loan rates for customers. Look into a bank’s loan policies and see if they offer things like more generous terms, lower interest rates, and the like for people who have open accounts with them. These can be quite helpful for reaching your long-term financial goals!
Read More: 10 Questions to Ask Before Taking Out a Personal Loan
Credit Unions?
Some people prefer to keep their money with a credit union instead of a bank. These are often a bit smaller and offer fewer account types and financial products. The trade-off, though, is that they offer lower interest rates for borrowers, better interest rates for savings accounts, or few fees for checking accounts. This is a compelling option for some people!
Read More: 15 Ways to Improve Your Credit Score
The Bottom Line
Mostly, just make sure you’re doing your research. It’s important to consider all the factors at play with something as important as where you stash your cash! Making the right choice can empower you to seize your financial future and define what your money can do for you. Making the wrong choice can result in you losing out on a lot of money you could have otherwise accessed.
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