It can be stressful trying to decide where to put your money, after all, you have worked hard for that paycheck. Choosing the right bank is not always easy and it’s important that it doesn’t cost you in the long run. Here are some tips when considering what bank fits your needs best.
Overdraft Fees
Not all banks are equal here except they are going to charge you if you have an overdraft in your account. The average fee is $34, and that’s for each hit you receive on your account. Most banks also offer a program for overdraft protection, some that are costly within themselves. With this being the case, the program may cost you more than an actual overdraft that may accidentally happen.
So how do you protect yourself?
Check if your bank can link your main checking account to your savings or possibly another account that you regularly keep money in for a rainy day. This may also incur a fee but much smaller than that of an overdraft. Additionally, some banks offer low balance alerts so that you are reminded that your funds are getting low. The best thing is just not to let it get so low, but we’ve all been there a time or two.
Your Way of Life
Believe it or not, banks all cater to certain demographics – once you find out what kind of consumer you are, you can search for a bank that fits your needs. For instance, some banks work well with businesses, so if you want to start your own, look for a bank that fosters entrepreneurs. Other banks may be small (these are fewer and fewer these days) and you can get to know the tellers and customer service people that, once they know you, will be more likely to help you out in situations or give you advice. Get out of the car, walk into the bank, and get to know these people.
Charges and Fees
Most people want to keep most of their money that they earn and not worry about extra expenses. Banks, however, are in the business of making money and as such will charge fees for their services. We all know it’s not going to be free, but as with anything else, it’s time to shop around based on the cost of holding your money. Some offer incentives like a lower monthly fee in exchange for sending your statement via email instead of regular U.S. Mail that costs them more money. Find out the associated monthly fees to help determine which one is best for you.
Credit Unions
Most people are familiar with the bigger banks that are practically on every street corner. But Credit Unions have a lot to offer and now days are easier to get into as you don’t always have to be affiliated with a group to get in. And sometimes joining a group might just help you out – it can be that easy. These banks typically have lower fees and better programs that include loans. So, keep shopping around to find what suits you best. Look at Pentagon Federal Credit Union for instance. They are an exceptional credit union, and take all members after passing a few requirements.
Technology
Banks today have become savvy in that they realize people are basically walking around with small computers in their hands. Because of this, accessibility becomes a huge option for people, especially millennials. Not all banks offer the same options when it comes to technology, so it’s something you want to know when considering a bank.
Can you deposit by scanning a check with your smartphone or can you just check your bank balance(s) online? Being able to deposit a check by simply taking a photo of your check and uploading it can be intoxicatingly convenient. No more fighting traffic just to get to the bank to deposit a paper check! Even something as simple as text alerts might steer you in one direction or another.
Fine Print
As said before, banks are in the business of making money. You need to know and understand their terms and conditions. From the monthly service fees to even your ATM withdraws, these things can be costly and add up – and even sometimes catch you off guard. Also, remember to look for how the bank you choose is insured. If the bank goes under, can you get your money back and if so, how much?
Be sure to read through all agreements that the bank sends you that you must sign or acknowledge receipt of. Many times, this is where they can hide some fee pitfalls, or even where they might get “your permission” to run your credit once a month or whenever they see fit.
There are many considerations when finding that right bank. Take your time and look at all the options out there. Just like your favorite pair of jeans, there will be one that fits you well.
