There are many things to consider when you are trying to choose a bank. It is a good idea to do some research before simply opening up a checking account at the first bank you come across. Take some time to figure out what kinds of services you want from a bank. There are a lot of different options to think about.
Make sure the bank is FDIC insured. FDIC stands for Federal Deposit Insurance Corporation. It is a federally sponsored group that insures accounts in banks, and other federal institutions. If your money is sitting in a bank that is FDIC insured, and the bank fails, you will not lose your money. While many banks are FDIC insured, this does not mean that all of them are. Take a moment and discover if the bank you are looking at is FDIC insured. You are taking a risk putting your money in a bank that isn’t.
Find out what kinds of fees the bank is going to charge you. Will they charge you to have a checking account? Is there a charge for you to open a savings account? How much is their overdraft fee? Many banks will have a certain amount of money that you must always have in your account, or they will charge you a fee. Does this bank charge you to use an ATM? Is there an extra charge if you use an ATM that is not from this bank? Read the fine print on absolutely everything! Sometimes a “free” checking account can turn into one that charges a fee.
Consider the way you like to do your banking. If you like being able to walk into a branch of your bank and speak with a teller, you might want to choose a bank that has many locations. If you don’t drive you might want a bank that has a location close to you. On the other hand, if you prefer doing your banking without every having to encounter an actual person, you might want to select an online bank. Or, find out if the bank you are thinking about will allow you to make deposits, transfer money from one account to another, and whatever else you need online. Do you want your paycheck to be directly deposited into your bank account? Not every bank has this feature. Doing research helps you select the right bank.
