Your money is a treasure. Deciding where to keep it can be a tough decision. These days there are a wide range of options – all better than keeping your money stashed under your mattress!
Usually a larger well-known bank is the safest choice; although they are also less likely to offer you quality customer service. Many recommend instead choosing a smaller local bank with a high rating to get the best of both worlds.
How to determine a highly rated bank? First ensure they are part of the FDIC, also known as the Federal Deposit Insurance Corporation. This institution will reimburse certain deposit types even if the bank fails. Most banks like to advertise their involvement with the FDIC and you will see the logo placed on the banks windows or doors. You can also visit the website, www.fdic.gov. For credit unions a similar institution is known as NCUA, the National Credit Union Association.
Another determination in selecting a bank is the fees. The competition for your money can be fierce and many banks will offer very low or no fee accounts. Still, there can be other hidden fees to watch out for. Always ask a potential bank what they charge for the following items:
• ATM use
• Live teller use
• Checks
• Overdrafts
• Stop payments and canceled checks
• Statements and balance inquires
• Interest rates
• Minimum balances
Lastly, compare these fees between a couple different banks, as well as the different services offered. Some people love to bank online, others avoid it like the plague. You may want to consider whether you want your bank to also make your investments, as some do offer mutual funds and money market accounts.
In addition, forecast how you may want to use your bank in the future. Many banks can offer special rates for their customers on car loans, mortgages and financial planning. It is good to understand exactly what your needs are and then go find the bank that is a best fit.
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