How to Select the Most Suitable Bank?

By Investor / Published on Sunday, 12 Feb 2017 06:55 AM

A Guide for Beginners

In this tutorial, we are going to tell you about how to select a bank. It is always confusing for a lot of investors or other common people to find a place where they can put their money especially when every bank offers different accounts or features. If you are able to find out the best bank then it will be able to fit your life completely.

If you are a student then you will find your type of account within the bank. And if you are a businessman then your bank will offer you different features that completely fits your need.

So, the basic question that arises here is that how you are going to select the account?

It is actually based on the evaluation of your needs that will tell you that which features of banking you have to look for, whether this is your first search or you will change the bank.

When looking at the financial market, you will get four different types of institutions to put your money:

  • Credit unions
  • National banks
  • Community banks
  • Online only banks

But, how you are going to select one bank for your own type?

You have to ask some important questions to yourself in order to get the best experience of the banking depending upon your goals and your priorities.

  • Does it have the type of account I am looking for?

It is actually your personal taste on which this answer is relying. Some people look for the place that is convenient to them. If you are among those people, then look for the things that you can do, such as, savings, checking, credit cards, retirement accounts, home and auto loans and financial planning.

Some people want to spread their money to get more out of it. If you are one of them, then look for every account and the features they are offering. Think about it that how you are going to keep your account completely organised. You will not find out any limit on the number of accounts, so you don’t have to worry about the personalization of your finances.

Here is one tip: the big national banks are usually suitable as they have the complete suite of accounts and their ability to match and mix across different institutions make it the best one among others.

  • What are their rates and fees?

Fees and rates are actually the cost that they charge you for the saving and using of the money. You can learn about the fees they are charging for the ATM usage, monthly maintenance, overdrafts, receiving paper statements, transfer of the money between the accounts and many other things. This list actually varies from bank to bank and so are the rates. Look for the interest rates on the credit cards or loans along with the ones that you will earn on depositing your money.

Here is the tip: the credit unions are the nonprofit institutions that offer a high annual percentage yield on the deposit accounts and they offer low fee as compared to other banks. The online-only banks have better terms as they don’t charge you for keeping the money in their physical branch locations.

  • Should the bank be closer to the home?

This is dependent upon the lifestyle that you carry along with your own financial business. Are you comfortable with talking to the person on the phone or you want to talk to them face to face? Do you have to travel a lot and you can withdraw money wherever you are? It depends on your answers, so you can look at the locations and the numbers of branches of the institution along with its ATM network and the mobile offerings.

Here is the tip: the national banks offer more branches all around the country. The credit unions that are actually the part of the network such as the Star or Allpoint, have the greatest coverage of the ATM.