How to choose a bank: 12 things to consider

Choose the type of account you want to open

Not all people have the same financial needs. Perhaps for you it is only necessary to open a debit account, while other people need to have a savings account or apply for a credit card. In any case, the first step will be to select the account that will serve your needs.

Compare bank rates

Another fundamental step for choosing a bank is comparing the different fees and commissions that banks charge for each of their transactions. This will help you decide which one fits your needs and budget. Depending on the bank account you choose, ask yourself questions such as: What is the interest rate that the bank charges for my type of account? Or, are there fees for making changes?

Research

Thoroughly investigate everything that the bank offers and get one step ahead by checking out each bank’s website to learn about its history, the types of accounts it offers and the requirements you have to meet. Knowing the history of the bank will give you greater certainty and confidence that your money will be in good hands and that you will not run extra risks.

Analyze apps to choose a bank

Accessibility is a key factor in choosing a bank, especially in an age where most banking transactions are electronic and where people want to avoid long lines at banks. Download the apps of the banks that you are comparing and analyze how they work, how accessible they are and what types of transactions they allow you to make, as this will help you make the right decision.

Read the terms and conditions

Do not choose a bank until you have read all the terms and conditions. Because if you do not read carefully you could be risking your current and future assets. Sometimes, the «fine print» includes payment conditions, interest rates and commissions that the customer does not know and does not usually ask about.

Read the reviews

It’s a good idea to read online reviews of the banks you are considering. With this information, it is easier to choose the account that suits your interests. It is not only about choosing the bank that charges the least fees or the one that is closest to your home. It is important to listen to users and form an objective opinion of each bank and its services.

Get to know the ATM network

You do not want to choose a bank that doesn’t have accessible ATMs so you can’t act quickly when you need to. Check out their network of ATMs. In what cities are they available? How many ATMs are there near where you live? How many of them work properly?

Learn about the rewards programs offered by the bank

What added benefits do you want to obtain by opening an account? In the case of credit cards, there are reward programs and special discounts on the purchase of certain products. Perhaps, for example, the bank will exempt you from the annual fees if you make a minimum of purchases. Therefore, it is essential to ask about these benefits.

Identify your short-term and long-term needs

To know what type of accounts are the most suitable for you, it is necessary to identify what your expenses are and the plans you have for the future. If you want to save for retirement, or for the purchase of a house, or even if you want to invest. It is also possible that your goal is to travel abroad, for which you may need a credit or debit card. In that case, consider the fees, available ATMs and benefits.

Compare account security

All banks require you to provide information corresponding to your social security number, ITIN, passport or green card, so you must ensure that all sensitive information is sufficiently protected. Identity theft is something that worries many customers, regardless of the bank they choose. Therefore, read all the information corresponding to data handling and the measures that the bank will take to protect it.

What are the fees?

Consider that, depending on the bank and card you choose, you will pay a monthly or annual fee to use the services. Therefore, it is recommended to verify that the bank you choose charges the least amount of fees. In the end, it is about you receiving the most direct and indirect benefits, and that your experience as a customer allows you to establish a long and reliable history with the chosen financial institution.

How many branches are there?

Make a list of the pros and cons of your bank. Thus, it will be easier to make a decision based on verifiable information. If, for example, it has few branches at the regional or national level, it may not suit you, even when its fees are low. With this information, you will be able to make an accurate decision, thus guaranteeing that all your investments and banking are backed by a verified institution.

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