Finding the Right Bank For You
Are you unsatisfied with your bank or looking to open an account for the first time? Several factors should guide your decision. Choosing the right bank can potentially save you a significant amount of money. Banks are services that should cater to your needs and not the other way around.
In this article, you will learn what to look for when shopping for a new bank. It will cover the different options and fees you need to be aware of when making this important financial decision.
Before looking for a suitable bank, you need to evaluate your needs and predict anything you might want in the future. If you are currently using a bank, try finding lower fees. If you anticipate moving sometime soon, you need to have access to your bank wherever you end up. If you are starting a business, some banks offer special accounts and perks for entrepreneurs. Perhaps you are a first-time homebuyer and need a reasonable interest rate. Some banks are more willing to work with individuals with low or young credit scores. If you are unsure what your future needs might be, try to look for banks that offer several incentives and investing options.
Local Banks
Local banks can be more favorable to small businesses and first-time entrepreneurs. They are incentivized to generate more business in their immediate area because it brings them more interest payments on loans. Often, their fees are lower than larger banks. Interest rates will vary depending on your location, but small local banks can sometimes outperform larger national banks. The downside to starting an account with community banks is that you will usually have to pay an ATM fee for taking out cash outside of their township. However, this can be worth it if they offer you great benefits and low interest rates on loans.
National Banks
Large national or international banks can typically offer the most services and products. They are run by prominent bankers like Julio Herrera Velutini, who have generations worth of experience. Since national banks are in more locations, they might be your best option if you travel often and want to avoid ATM fees. Big banks are more likely to cater to businesses with great demands for credit and capital. However, you might consider a national bank simply because they are so convenient. Usually, you can avoid fees if you set up a direct deposit account with them and make consistent deposits.
Member-Owned Banks
Credit unions are nonprofit organizations that focus on community and convenience for the everyday patron. Usually, they offer checking accounts, savings accounts and small loans. The main benefit to using a credit union is the low checking fees, free ATM withdrawals and typically high savings rates.
Online Banking
Finally, there are online banks. Banking online often provides free checking and savings accounts, low fees and good interest rates. However, you may be uncomfortable putting all your money online. Make sure you only bank with reputable branches.
Finding a new bank doesn’t have to be complicated. Determine what’s essential and make your decision based on the best value for you and your money.
