How to choose a bank

How to choose a bank

Choosing a bank could be quite challenging today. There are so many financial trusts owning a huge amount of banks. Here are the most important questions to consider when choosing a bank.

* Start by planning and thinking. What do you need from your bank? What kind of financial services? Are you a saver and need better interest rates for your saving accounts or prefer being able to often do overdrafts at better rates?
* Consolidate your accounts. Over time modern business people tend to have too many bank accounts in different banks. The advantage of that is that people are not putting all the eggs in one basket, the disadvantage is tons of admin maintaining and looking after so many accounts. Think about consolidating some of your accounts. Most of the people hardly need more than one current and a couple of saving accounts.
* If you are in the US use comparison bank services like BankRate or FindABetterBank. Compare not only the rates of different accounts but look at the specific terms & conditions and bank policies.
* Look for large and widely known bank is usually safer. The famous banks though usually do not provide the most valuable products. Keep the balance and choose a bank that will provide good terms but is also well known.
* The location and the size of the bank are also important. It really is great to have a bank branch near your home. If you travel abroad often it is also a good idea to choose an international bank with branches in the countries you visit.
* Be careful with the bank fees. Make sure you are choosing a bank that does not make you pay a fee every time you do something with them. Unfortunately, banks have the right to change that and even if you start with a bank that does not have regular fees for using ATM, bank withdraws or online banking, eventually, the bank might introduce fees in due time.
* Call a bank representative and ask your most important questions. Do not let anybody delude you with vague answers. Be persistent and ask for clear and straightforward answers.
* Consider which products you would be using and do not pay for something you are not. For example, there is a different kind of insurances but think about if you are receiving any value from your optional products. If not – terminate them.
* Do not be afraid to leave when you find out that the chosen bank does not actually provide value and the services they promised.
* Some banks have specifically designed products for people with a lot of cash. Other banks specialize in providing loans with decent rates. Think about what do you need and choose your bank accordingly.

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