Historically, consumers had no choice but to choose a bank based on location. If you wanted to be able to deposit or withdraw money, make a transfer, apply for a loan, or complete other transactions, you had to visit in person. Thankfully, times have changed, and banking is as simple as clicking on a smartphone app.
How do you decide where to bank with so many options to consider? It’s important to research all the options and make an informed decision about where to bank.
Here are some factors to consider:
Above all else, you want a bank with a positive reputation with its target audience. You want to know that you’re entrusting your money to an institution that will go above and beyond to keep it secure while providing quality service. The best way to determine a bank’s reputation is to complete an online search. If negative information is out there, it will likely be the first thing to pop up in the results.
Another suggestion is to read customer reviews to see what others say about their experience with a particular bank. Employee reviews are also worth reading. If the bank doesn’t take care of its employees, chances are they won’t invest in their customers.
Bank Investments And Community Involvement
Banks use your money to finance other business ventures and community activities. While this is legal and standard, you want to ensure that your selected bank does the right thing with its resources. As you compare banks, look for what industries they support and how they’ve helped the community.
Products And Services
The better products and services a bank provides, the better it is for your financial well-being. Your bank can be instrumental in helping you do everything from reach savings goals to securing a loan for a house. Evaluating what products and services are available is essential to understanding how they could benefit your financial needs.
Sometimes, banks can charge tons of extra fees in order to bank with them. As you review bank accounts, check out the standard banking fees. You should consider a bank like ONE that doesn’t charge extra so that you can save hundreds each year.
Convenience And Accessibility
Banking should be simple and convenient. Therefore, it's important to weigh what conveniences a bank offers before choosing one. For example, can you access your account online or through a mobile app? Can you schedule transfers, pay bills, and manage your budget? Can you add money to your account through multiple methods? What customer service options are available? Ideally, you want various options, including by phone, email, or chat.
Over time, interest rates can contribute to the success and value of your savings. While the national average is 0.01% APY, you can find some banks that offer as much as 1% APY to get more for your investment.
Everyone needs a bank in order to help better manage their money. However, choosing just any bank could jeopardize your financial future. Therefore, you should consider each of these factors before making a choice.