7:43 PM
Kholid Al Fakhry
Tips for choosing a Bank that's Right for you:
Shop around -- Shop around for a bank that offers the services that you want and whose fees are competitive. Choose a bank that is FDIC insured. This means that your bank account is insured up to $100,000.
Bank Fees - Look very closely at the fees associated with bank accounts. You will find the fees in the fine print. This is where banks make a lot of money these days. Fees you should look out for: ATM Fees, balance inquiries, flat monthly fees, per-check fees, overdraft protection fees, fees for going below the minimum balance, bounced check fees, fees for using ATM's that aren't associated with you bank, placing stop payments on checks, providing canceled checks with monthly statements and closing your account fees.
Retail Locations - If you are going to do most of your banking face-to-face with a teller, make sure that your bank has retail locations that are convenient.
Online Banking - If you are an avid user of the Internet, you may want to check if your bank offers an online banking center to pay bills online, check balances, transfer funds, and link to other financial institutions such as brokerage houses.
Account Details - Most banks offer several types of checking accounts and several types of savings accounts. Choose the bank that offers accounts that fill your needs. If you write a lot of checks, find a bank that offers a low or no fees to write checks. If you are a saver, find a bank with a high yielding savings account.
Types of Bank Accounts you will encounter when Choosing a Bank:
Checking Accounts- This account allows you to write checks against the balance you hold in your account. It also allows access to your money through an automatic teller machine(ATM) and is often attached to a debit card. It is used for everyday expenses and not generally used for savings. Most banks offer a number of checking account options. When deciding on a checking account, it is most important to understand the fees associated with the account. You should choose the account that works best for your financial needs and try to minimize fees.
Some common fees associated with checking accounts:
- Monthly maintenance
- Balances below the required minimum
- Bounced checks
- Stop payments
- ATM or teller use
- Debit card use
- Photocopies of checks or share drafts
- Cancelled check receipt
Savings Accounts -Savings accounts are generally used for short-term savings needs. Interest rates vary and are generally less than other savings vehicles available. Be sure to make sure that the savings account that you choose is insured by the Federal Deposit Insurance Company (FDIC).
Money Market Accounts - Money market accounts earn a higher rate of return than most savings accounts. There is generally a minimum balance that generally ranges from $500 to $2,500. There are sometimes withdrawal restrictions associated with these accounts.
Certificates of Deposit (CD) -CDs generally offer higher interest rates than general checking, savings, and money market accounts. However, they have higher minimums and often have strict withdrawal restrictions.
Debit Cards - Debit cards are tied to your checking account. They act as an electronic version of a paper check and are accepted at an increasing number of locations every day.
