How to Choose a Bank that Fits Your Family’s Needs
Perhaps your child wants to open their first checking account. Maybe you’re shopping around for the best home mortgage terms. Or it could be you’re simply looking for the most convenient financial home. Whatever the case, finding the right bank can be a little tricky.
When it comes to your money, you want to be careful. There are many factors to consider — from bank size to the services offered. So, how do you choose? Before you panic and see dollar signs slipping through your fingers, consider these points. They can help you decide which bank is right for you.
1. Look for No or Low Fees
There’s one thing that everyone expects banks to have in common. They’re all supposed to keep your money safe and help you hold onto as many of your dollars as possible. Instead, fees — maintenance or overdraft fees, for example — simply drain your bank account. It frequently happens when you’re not even looking.
You can avoid this money drain, though, with a bank that has either no or low fees. Online banks are a great option if you’d rather not fork over a dollar here and there. Unlike some brick-and-mortar banks, they don’t charge you if your balance falls below a randomly set minimum level. Plus, for some online banks, a debit card can also build your savings. Every time you swipe it, your purchase gets rounded up, and the extra gets socked away for a rainy day.
2. Know the Type of Bank You Want
A bank is a bank, right? Not really — there are multiple options. Just like different types of cars offer different bells and whistles, banks are the same way. You must find one that offers the services that most fit your financial needs. Consider what you’re looking for right now, as well as what might be important 10 years in the future.
Big national banks have the most account and loan options with real-world and online access. They’re also most likely to charge you pesky fees while offering you the lowest savings rates. Regional banks are similar, but they tend to stick to certain geographic areas. Their online and mobile tech might not be as great, but they generally offer attractive loan services.
Looking for something a little less traditional? Consider a credit union, online bank, or neobank. Credit unions charge membership fees, but they offer higher savings rates and great personalized service. Choose an online bank if you don’t need a bank branch or ATM. Be careful, though, because they don’t always offer every type of account. Neobanks focus on mobile service. They provide several account types, and you may get early access to direct deposit paychecks.
3. Think About Convenience
You may have noticed some of these bank options have brick-and-mortar branches and others don’t. When you’re selecting a bank, that’s a big factor to consider. Ask yourself how much being able to walk in and talk to a bank teller matters to you. If that face-to-face interaction means a lot, pay attention.
There will be plenty of times you’ll need your money on the fly, though. Searching for a physical bank branch won’t always be convenient. You still need to keep your money at your fingertips. To do that, be sure you choose a bank with enough ATM locations and online or mobile banking capabilities.
4. Explore Other Services
Your biggest banking concerns right now might be your checking and your savings account. Over time, though, that’s likely to change. You’ll need a credit card, or you’ll want a loan to buy a car. Eventually, you may take on even larger financial debt, like a mortgage. You want a bank that will be by your side through everything.
To keep all your financial activities in one spot, look for a bank with additional available services. Pay attention to the interest rates, though. They apply to investment accounts, home mortgages, car loans, and credit cards. Look at all the rates and be sure you can handle them. You want a healthy interest rate for investments but a lower one for your mortgage.
5. Evaluate Customer Service
It’s easy to get swept up with all the numbers when you’re searching for a bank. After all, your money — growing it and saving it — is on the line. Finding the best bank for you and your family is about more than dollar signs, though. At some point, you’ll have a question, and you’ll need someone to talk to.
That’s where good customer service comes in. Being left on hold or getting passed off to different departments on the phone is beyond frustrating. Talking with a customer service representative with a bad attitude who couldn’t care less about you is equally as bad.
Do yourself a favor and ask your friends whether they like their bank’s customer service. What’s good or bad and what would they change? Use that information to make an informed decision.
6. Read the Fine Print
You’ve probably heard that when it comes to business, the devil is in the details. This saying definitely applies to banks too. There’s one specific detail you must pay closest attention to when it comes to banking options. You must make sure your money is going to be protected if anything outside of your control goes wrong.
To safeguard your dollars, read the bank’s documentation to make sure they’re insured by the Federal Deposit Insurance Corporation. This protection offers each customer $250,000 of insurance per account if the bank fails — that’s serious peace of mind. If you use a credit union, it should be insured by the National Credit Union Administration.
Overall, most banks offer many of the same things. Identifying the right one requires a bit of work on your part. If you keep these factors in mind, you’ll be on your way to choosing the best financial institution for your family.
