Top 6 Factors to Consider When Choosing Banks

Did you know that choosing a bank is an important decision that requires a lot of research?

When people get a job for the first time or move to a new area, one of the first things they think about is opening a bank account. However, you can’t just go with the first bank you see because they could offer things that won’t be good for you.

Properly choosing banks is all about spending time to find out what different banks value. After getting an understanding of their terms, you can choose one that will help you meet your financial goals.

Read on to learn about 6 factors to consider when choosing banks!

1. Fees

One of the main things that should impact your decision when choosing banks is fees. Bank fees are difficult to deal with, especially if you’re being charged for every transaction you make. Fortunately, this isn’t a problem with many banks, but several do charge fees for various things.

If you travel overseas, you may have to pay extra fees to use your cards. You may also be charged for withdrawing money in a foreign ATM. Even if you’re staying in the US, you shouldn’t go with a bank that will charge you fees to withdraw from an ATM within the country.

Before settling on a bank, look into their terms to find out what they charge fees for. Comparing ATM fees will help you decide if you plan on traveling or withdrawing often.

2. Overdraft Protection

Although many people don’t have to deal with an overdraft, it’s something that everyone should consider when choosing a bank.

Overdraft protection is offered in many ways, but it will depend on how the bank feels about overdrafts. For example, Huntington Bank offers overdraft protection in a way that gives customers 24 hours to bring their balance up.

Instead of being charged as soon as they overdraft, they get a chance to deposit money so that they don’t face fees. This is something that you should look for in a bank because overdraft fees can cost a lot.

3. Deposit Options

No matter which bank you’re interested in, you need to look into their deposit options to ensure that they’ll be flexible enough for you. When opening checking and savings accounts, you must be able to deposit money whenever you’d like.

Many banks offer mobile deposits, which can be done by taking photos of your checks. They also give customers the chance to physically deposit when the bank is closed by offering outside ATMs.

If mobile depositing is something that interests you, find out what the maximum amount allowed is with a bank. They often put limits on mobile deposits because they’re riskier.

4. Online Banking

Online banking is something that everyone that opens a bank account will engage in. The benefits of online banking include account management, mobile deposits, transfers, and more. While most banks will offer similar features, some offer more than others to satisfy their customers.

The latest banking technology allows banks to give customers a variety of tools to help them control their accounts. You can find out what some of the features of an online bank are by visiting their website. For example, Farmers Bank lists all of its services, which include loans, accounts, credit cards, etc.

5. Branch Availability

If you’re someone that visits the bank often to do things like deposit and withdraw money, you should check which branches are near you. Branch availability isn’t that important today because of online banking, but it helps to have a branch nearby that can be visited whenever you have a problem with something.

While this shouldn’t play a major role in your decision when choosing banks, you should look online to find out which branches are near you. If a bank is popular enough, you shouldn’t have a problem finding a branch no matter where you go.

You’ll often find banks that are common in a specific state. For example, we previously mentioned Huntington Bank, and they have a variety of branches located throughout Ohio. If you can find a bank like this in your state, you can find a branch in most cities.

6. Customer Support

Aside from bank fees, one of your main focuses should be customer support when choosing a bank. This is crucial because you’ll need to choose a bank that provides excellent service so that you can quickly resolve problems.

An effective way to tell if a bank has good customer support is by seeing how often they offer their services. Whenever a bank has 24-hour support, it’s usually because they care about their customers so they want to help them whenever they can.

If you don’t have experience with a bank, you can check online customer reviews to learn about a bank’s customer support. Read through Google Reviews, which show up whenever you search for a bank. Within the reviews, people will often describe their problems and what the bank has done about them.

Choosing Banks Has Never Been Simpler

After reading this article, you’re now ready to start looking for a bank that will provide what you need. When choosing banks, go through these factors and determine which ones are most important to you. From there, you can pick a bank that matches your values.

We encourage you to start looking online for banks in your area. See if a bank is offering a deal for opening an account with them. They’ll often give you extra money if you deposit a certain amount when opening an account.

Check out our other articles to learn more about a variety of topics!