Choosing the Right Bank

Choosing the right bank is not as easy as it once was. Even though recent legislation and new Federal Reserve regulations have taken effect to stop banking institutions from charging consumers so many fees, you still need to shop around to find the best account for you. You have to take into account your particular banking style. Do you do more ATM and online banking? Or maybe you prefer banking at a branch, face to face with a teller. These things have to be taken into consideration when you’re deciding where you will place your money.

Compare Different Banks

While large banks may be more convenient if you tend to do most of your banking at a branch, for those with a little more leeway, consider the other banking options available to you. Online banks and credit unions or smaller community banks often offer perks like free checking or minimal banking fees than a larger bank. On the downside, they may not have the same number of branches or ATMs as a large bank. Remember, you don’t need to put all of your money into the same bank; try to shop around. You can have a checking account at a larger institution and then take advantage of higher yields and better interest rates at online banks, credit unions or community banks. Whatever type of bank you want, you need to compare the fees. These include overdraft, low-balance fees and account maintenance fees. If you’re looking to grow your money, see which bank offers the best yields and return on your money.

Fees

Banks used to be able to charge customers overdraft fees. In the recent past, banks would charge customers exorbitant fees if their account became overdrawn. For instance, if you made a purchase for $30 and you only had $29.50 available, the bank would allow the purchase to go through and then charge up to $45 (depending upon the institution) in fees. Since this practice is no longer allowed, unless customers specifically opt in for this courtesy, banks have lost a large part of their annual revenue. As a result, many banks now charge other fees. Charging customers fees to withdraw money from an ATM other than their bank’s ATM, account under-usage fees, and account maintenance fees can really add up. Check with your bank to see what fees are associated with each account. Select an account that suits you and if you notice any fees of which you were not aware or dispute, contact customer service for an explanation.

Perks

As consumer confidence seems to wane, banks are now offering perks to entice people. See what perks such as reward accounts, automatic transfers to savings accounts, and money back with deposits the banks are offering. These perks can keep larger institutions competitive. Find the one that most benefits you and speak to an account representative about it. Make sure you know all of the details regarding the perk and have them send you something in writing detailing the exact nature of your account and perks.

Choosing the right bank can be a tedious prospect as many of us are becoming more cautious with our money. Selecting a bank that is convenient, competitive and offers the best package will take a little time, but is well worth the added effort and peace of mind.