Opening a bank account is an important step in life. However, there are a million banks. Which one do you choose? Hopefully this article will help you decide.
Opening a banking account is a relatively easy thing to do. And having a savings or checking account has two major benefits. First, your money will be in a safe place. And, secondly, your money will earn more money while it is in the bank.
Chances are that you’ve drawn up a list of banks where you might consider opening your bank account. Here are three important questions you should ask about the banks on your list.
How Much Access Will You Have To Your Money?
How much access you have to your money will depend on whether you opt for a checking account or a savings account.
A checking account gives you more access to your funds while it earns a very small amount of interest. But, for most people, the true purpose of a checking account is keeping their money in a safe place. With this kind of bank account, you can write checks to pay bills or make purchases. And, if you have a debit card, you can use it to buy goods, withdraw money from ATM machines, and make purchases online.
A savings account is the best choice for someone interested in actively saving money. With a savings account, you’ll earn more interest than you would with a checking account. While you can access your funds, there is usually a limit on how much you can withdraw every statement cycle. If you try to withdraw more than that, you will usually have to pay a fee. The withdrawal limit will often differ from bank to bank, and this can play a part in the financial institution you choose.
Some banks make it easier for customers to access their money than others. To find out which category each of the banks on your list falls into, ask friends, family members and acquaintances about their experiences with different banks in your area.
How Much Will You Have To Pay In Fees?
Most banks seem to charge a fee for everything. They charge you for taking too much money out of your savings account. They charge you ATM fees, teller fees, overdraft fees, and debit card transaction fees. They might even charge you to move your money to another bank.
Before opening a bank account, shop around and compare each bank’s fee structure. If two banks seem to be equally good, you should always choose the bank with the lowest fees.
What Are the Interest Rates?
Another factor to consider is the interest rates. How much money will the bank you choose give you for keeping your money in their bank? One way to find out is to call each bank individually and ask. However, there are websites that will give you access to that information much faster.
Again, if you’re choosing between two equally good banks, you should always go with the one with the best interest rates.
Choosing a bank can be a daunting task, especially if you have a lot of choices. But, by asking these three questions, you’ll be able to find a bank that has low fees, has high interest rates on checking and savings account, and allows you easy access to your money.