How to Choose a Bank that Meets Your Needs

Choosing the right financial institution is the first step in taking control of your financial future. Banks can either be an asset to help you with investment options, checking accounts, savings accounts, or they can hinder you with several fees such as maintenance fees. Selecting a bank is a decision that will last a long time, so be sure to choose one that fits your needs.

Traditional vs. Online vs. Credit Union

Among physical financial institutions such as traditional banks and credit unions, they both generally basic services such as in-person support and instant access to your funds. They have direct access to experts on financial topics can provide you with a personalized approach to managing your money.

The largest difference between banks and credit unions is that banks seek to make money from their consumers. Credit Union members join the company by purchasing a share, so that when the institution makes money, so does everyone collectively. Banks are created to make profit from their shareholders. While they both offer insurance for your money, banks are insured by the Federal Deposit Insurance Corporation, while Credit Unions are insured by the National Credit Union Administration.

If you aren’t interested in these physical locations, you may opt to put your money with an online bank. The advantage of being with an online bank is that you will always have your funds at the click of a button. You can complete most transactions through a desktop or smartphone, but the drawback is that you can’t withdraw physical money from these accounts.

If you are interested in learning more about the advantages and disadvantages of Bank and Credit Unions, be sure to check out our complete Difference Between Banks and Credit Unions Guide.

Types of Accounts Offered

Financial institutions offer a wide variety of accounts for any situation that you may need it in. If you are looking to hold your money for a long time, it’s best to go for a savings account. They offer great rates that can help you grow your money over time without a second thought. If you need an account for high liquidity and fast spending, it’s be to go with a checking account, and the money is easily withdrawn with no additional fees.

There are many bank accounts and financial institutions to choose from, but you don’t have to stick with the same bank. You can mix and match accounts from different banks because some offer better rates than others.

Fees and Interest Rates

Most financial institutions have additional fees for their products. Generally, you have to exceed a spending limit, withdrawal limit, or go below the minimum balance to incur a fee. Banks have fees in order to give them added security that you are staying within your agreed spending capacity to reduce risk for them, and also fees are ways for banks to make money.

Here are a couple examples of the common fees you may find:

• Certified check fees
• Stop payment fees
• Returned check fees
• Statement fees
• Out of-network ATM fees
• Wire transfer fees
• Cashier’s check fees

One of the biggest differences between banks are their rates. Most banks claim to offer competitive rates to encourage consumers to invest with them, because opening bank accounts are a long-term commitment so customers want to make sure that they’re also making the most of the financial decisions.

Branch and ATM Locations

Choosing a bank is also about location. If you travel a lot, you may want to choose a national bank so you can access your funds across the nation. One of the larger banks would be best such as Wells Fargo and Chase, because they operate in all states.

In addition, you need to consider whether you prefer to be able to meet with an expert in-person, or whether you prefer to do everything online. Credit Unions are often limited to their geographic area, but most are part of a Co-op network so you can access any ATM fee-free that is in their network.

Online and Mobile Banking

With the rise of technology, you are able to deposit checks with a picture, or transfer money in the palm of your hand. Being aware of what online and mobile services a bank has to offer can make your banking experience easier.

Some of the larger banks have an app that makes which offers tools that can help prepare you for the future like budgeting tools, savings plans. If you’re worried about security, some banks offer a two-factor authentication to verify that your money is in the right hands.

Author’s Verdict

When looking for a new financial institution, there are many factors to consider. It depends on what you prioritize and value, that can help you secure your money. Banks offer so much more than just accounts, and can help you learn more about managing your finances in the long run.

All of them are great institutions that will get the job done. However, it’s up to you to decide which one suits your needs best. Both banks and credit unions offer promotions where you can earn bonus cash, credits, and more. In addition, if you’re interested in a savings account, we have a list of banks and credit unions that offer the best savings account rates and the best CD rates you can find locally and nationwide.