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The days of stashing money under our mattresses are long gone. Today we keep our money in the bank. However, the bank is used for much more than just saving. Banks help you take out a mortgage, borrow money for unexpected expenses, spontaneous investments, and much more. In addition, banking services are used for equity savings, funds, and much more that makes capital grow.
Your bank should fit your individual needs and align with your future goals. Although this decision isn’t the most high-stake one of your life, it’s still a powerful tool that will help you handle your finance with ease, and it could save you plenty of money.
In this article, we take a closer look at different things that may be worth considering when choosing a bank.
Pick an Ideal Type of Account
Banks are like buffets as they offer many different types of products and services. Attempting to compare all of them at the same time can be overwhelming and the perfect place to start is identifying which type of accounts you need based on your financial needs, goals, and priorities.
The most common bank accounts include checking accounts, savings accounts, money market accounts, and certificates of deposit. When choosing a bank, you might want to consider a larger, more traditional bank that has multiple types of checking accounts at your disposal if you’re looking to replace your existing one. You may even want to opt for a high-yield checking account offered at some credit unions and online banks. A high-yield savings account is usually recommended to those who are interested in saving more money.
Money market accounts are very similar to savings accounts but may have check-writing privileges and if this catches your interest, remember that they allow for a limited number of monthly transactions.
Certificates of deposit offer clients a way of earning interest by storing your money for a pre-determined period, and locking in your interest rate for the full term. This earns you a guaranteed rate of return. You’re able to access your money before the period ends but you’ll likely have to pay fees or a penalty.
Depending on your financial goals and needs, all of these options are available for you so do your research as the rates and terms offered from one bank to the next vary. You might also need a bank that provides debit card and credit card options, and lending products such as investment accounts, mortgages, financial planning, and personal loans.
Mobile services are becoming a decisive factor for many people who’re looking to choose a bank. Having in mind the Covid-19 pandemic that has been ongoing for nearly two years, it’s no surprise why it has become especially important. It allows people to take care of numerous troublesome to-dos whenever they want with a few taps on their mobile device or laptop, saving them plenty of effort and time.
If you’re someone who frequently transfers money to family members and friends, mobile banking can allow you to transfer funds between different accounts in a split of a second.
Regardless of what bank you choose, there are prompt ways to transfer funds to your loved ones, and one of them is through financial providers like Capway, which offers a wide range of banking options with the sole purpose of guiding and assisting people in achieving their financial goals while keeping their data safe.
Banks That Charge Low or No Fees
Nobody wants to be part of a bank that charges a ton of fees when there are other banks out there charging low fees or no fees at all. Online banks are known to offer low fees since they have few branches and operating costs. The maintenance, ATM, and overdraft fees are something you should watch out for.
Whenever you’re in the process of choosing a bank, search for one that has more lenient overdraft policies. Once you have opened your account, link it to another account at your bank so that if at any point, you run out of money in your checking account, the bank can draw funds from the other account to cover the transaction.
You might be charged a fee but it’s usually less than an overdraft fee. You can also sign up for low-balance alerts that you receive on your phone whenever you’re at risk of overdrawing your account.
In today’s world, having a bank that offers you flexibility when managing your money, and easy access to a wider range of services, better rates, and lower fees, is crucial. Whatever you choose, make sure the bank allows you to handle your accounts with ease and helps you stay on top of your finances.