How to Choose the Best Bank for You
Are you getting ready to choose a new bank for your financial needs? Have you just started looking into a banking provider for the first time? If so, then you might be intimidated by all of the options out there. With so many banks and banking services to choose from, it can be very hard to know how to find the best bank for you. This guide on choosing the best bank lays out everything in an easy-to-understand manner that will make it a breeze to choose the best bank and ensure you have all the knowledge and resources that you need when selecting a bank. But first, let’s cover some important topics and an overview that will help put you in the best possible position.
The Top Line
- There’s no “one best bank”. The answer of which bank is best will vary depending on the person and their unique needs.
- It is important to do your research when choosing a bank because the bank that you choose will affect your life in many ways both now with your day-to-day banking needs as well as the future when you may seek loans for buying a home or car.
- There are thousands of banks out there to choose from, so there is no shortage of options.
Why is It Important to Choose the Best Bank?
The first question that you might have is why is it so important to choose the right bank? While choosing a bank isn’t necessarily a monumental step in your life, it does carry a lot of importance when it comes to your finances and the future of how you will manage your money and obtain financing for large purchases. Here are just some of the reasons that it is important to treat the decision with as much care as possible when it comes time to choose the bank account that is right for you.
Rates
One thing that sets one bank apart from another is the interest rates that they offer. This is important when it comes to two different products--bank accounts and lending options. When you sign up for a ban, the bank will offer you an interest rate on the money that is kept in your checking or savings account. This is money that you earn just for keeping money in the account. Generally, it is going to be a very small amount. However, lately the rates have been rising. That is why it is important to keep an eye out for advertised rates for bank accounts. The discrepancy between the top and bottom end of the range is now significant and can make a change in how much money you have.
Another aspect is the lending rates. You should seek to make relationships with banks that advertise lower interest rates on lending options. You want to work with a banking partner that won’t charge you as much to take a loan for personal reasons or for your home or car. Finding a banking partner that offers great rates can mean the difference of thousands of dollars in the long run.
Convenience
When looking for a bank to meet your needs, another very important aspect is the convenience that they are able to offer. It is important to pick a bank that is able to offer as much convenience as possible. This means mobile banking solutions, plenty of branches, and great access into your bank account along with features like mobile check deposit and automatic bill pay. If you want to get the most benefit from your bank account, it is important that you take this into consideration.
Future Lending
When choosing a banking partner, you will also want to make sure that you are picking a bank that not only meets your needs now, but will meet them in the future. Investigate that the bank that you pick will have the lending options that you need when it comes time to buy a home or vehicle. Forming a relationship with a bank that can offer this now can increase your chances of approval, rather than scrambling to find a partner when you need one later on. Banks often have special loan programs or rates for current customers.
What Matters When Choosing a Bank?
There are a wide variety of factors to take into consideration when evaluating whether a bank is the right choice for you. Here are some of the guidelines that you should use to evaluate whether a bank is a good option for you and your financial needs.
Account Types
You should consider which account types you will need. This could be checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), lending accounts, and anything in between. You should always make sure that the bank you choose has the account options that you need, otherwise you might find yourself looking for a new bank when the need arises. It is inconvenient and time-consuming to switch banks most of the time, so be sure to select the bank that has the account options that you need right off the bat.
Interest Rates
Interest rates are a common point of differentiation from one bank to another. You should really do some shopping around when it comes to interest rates, because you can earn a decent percentage on your checking account with high-interest accounts now coming out from online banks. It’s important that you find a banking partner that will reward you for your deposits and compensate you fairly for them.
Customer Service
When considering your financial well-being, it is very important that you have access to customer service. When you need assistance with your account or are trying to find out more about fraudulent transactions, you need to be confident that you can get in touch with your bank to resolve the issue. It’s important to know the various ways that you can get in touch with customer service such as by phone, email, chat, or phone app.
Account Access
One factor that you might want to take a look at is how you can access your accounts. This can play a large part in determining which is the right bank account for you. Many prefer to have online access for maximum convenience and a plethora of features. With online access, you will probably be able to not only check your account balances but make transfers between accounts, deposit checks, pay bills, and view your history.
Fees
The costs involved in banking play a factor in choosing a bank. Some banks charge monthly account fees, and all banks charge fees for other transactions or occasions such as overdrawing on an account, wire transfers, and low balances.