Here
are some tips for choosing a financial institution
that's right
for you: - Seek
out the
FDIC label --
Look for an institution that is insured by the Federal
Deposit Insurance Corp. That means your deposits will
be protected up
to $100,000. You will find FDIC stickers displayed
on doors and teller
windows.
- Shop
around
--
Compare the costs of accounts among banks in your area.
Know
what types of transactions you regularly make and evaluate
accounts
based on your needs.
- Be
fee-wary
--
A 1996 Consumer Reports study identified 100 fees banks
impose.
Among them are fees for ATM usage, balance inquiries,
seeing a live
teller, flat monthly fees, per-check fees, overdraft
protection fees,
fees for going below the minimum balance, bounced check
fees, fees for
using another bank's ATM, placing stop payments
on checks, providing
canceled checks with monthly statements and even closing
your account.
- Consider
banking
at credit unions --
Credit unions are member-owned alternatives
to commercial banks. Because credit unions do not have
to pay stock
dividends, their fees are generally lower. Many larger
credit unions
have branches, ATM networks and offer all the services
of a bank. Many
companies, unions, state and local governments, and
communities have
credit unions you may qualify to join. If one family
member qualifies,
generally everyone can join. Credit unions are federally
insured, just
as bank deposits are.
Things
to look for:
-
Linked
accounts
--
Look for banks that offer a checking account linked
with another
account. Your savings balance, for instance, may offset
your checking
account balance requirement.
-
ATMs --
If you use ATMs frequently, look for banks with a lot
of them. Most
banks do not charge you to use their own machines.
- Direct
deposit
--
Many banks will offer free or lower-cost checking with
direct
deposit because they save money since they don't
have to process
paper checks. Many employers offer direct deposit.
The federal government
also pays Social Security and other benefits through
direct deposit.
-
No-frills
checking options --
If you don't write many checks a month
and cannot meet minimum required balances to avoid
regular checking
fees, look at no-frills/flat-fee accounts.
Things
to be aware
of: - Beware
of NOW
(interest-bearing) accounts --
If you cannot maintain high minimum
balances, it is best to avoid these accounts because
the fees may cost
you more than it's worth to earn the low interest
on your balance.
- Service
is
important --
Price isn't the only consideration. Take a minute
to think about how comfortable you feel at each institution.
Do employees
offer helpful suggestions? Are your questions answered
quickly and accurately?
Will the bank's hours and locations serve your needs?
Thinking
about an Auto Loan? Home Equity? Any bank product?
We give you unbiased rates for
your area at bankrate.com. |