Choosing a local bank is one of the important decisions you’ll make in managing your money. Each bank is different in terms of the account types it offers you, the fees it charges and the resources it provides you nearby and when you’re traveling. There are many aspects to consider before making your final decision, but here are the factors that many experts believe are the most important.
Fees and Interest
Fees and interest are among the important qualities of a bank because your bank should help you save and earn more rather than spend more. Many banks will waive fees if you keep a certain level of money in your account. Determine where that sweet spot is for you, and then, look for banks that aren’t going to charge you to maintain it each month. If you’ll be able to keep enough money, consider both an interest-bearing checking account and a savings account, and strong rates for both.
Online Banking
Online banking is an essential feature of any bank whether it has a physical presence or not. Not all online banking services are equal, and there are many banks that are still getting up to speed in this area. It’s paramount that the bank you choose offers an app or at least a website that is secure and works well with your phone. We also recommend targeting features like alerts, mobile deposit, bill pay, digital check cashing, and so forth.
ATMs
Access to automated teller machines (ATMs) is important. Even if you don’t plan to use an ATM often, there will be times when you need cash and cannot use your credit and debit cards. If you plan to use an ATM often, it’s a good idea to choose a national bank that has good coverage in your home area and in those areas where you’ll travel often. Banks also offer free out-of-network transactions. You will find yourself having to use an out-of-network ATM from time to time, so having a few freebies at least is recommended.
Customer Service
Customer service matters a great deal when you need it. For many bankers, that won’t be often, but you want to ensure that when you do, the customer service is good. Pay attention to online reviews from other customers. A handful of disgruntled clients generally isn’t a big deal, but if you notice a pattern of behavior in those complaints, it could be a big red flag. Look for banks with multiple service channels, broad availability, and representatives that are based in your home country.
In advance, you should research the types of accounts available and which ones you’d like. This will allow you to consider the four key factors above within the context of your needs and preferences. Also, explore the types of banks available to you. These include community, regional, and national banks but also credit unions, online banks, and neobanks. Ahead of time, answer questions such as whether you need a branch local to your home or can do most of your banking via your phone.
Published By: Aize Perez
