Where you save your money is a very big decision to make when choosing a bank to bank with especially when it concerns business.
A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.
Credit definition: Wikipedia
If you are looking for a new bank to save your money or do some monetary transactions, then you need to consider many things before choosing a bank to open an account with.
People are different same ways banks are different. Banks have different packages that suit people differently.
In this article, we will figure out what you should consider when choosing a bank or financial institution to transact with.
Before changing your bank if you were banking with another bank, you have to figure out if the lapses you figured out can be fixed while you continue subscribing to their service or whether you really have to look out for another bank.
To do this, you need to contact their customer service and make your complaint, if they can’t fix the issue, then you can walk out and bank with another institution.
You need to be extra careful and sensitive to some things you find out and always ask questions about any bank you wish to bank with.
You can do this by having a discussion with their marketers and also with persons that have existing bank accounts with them.
List of what to consider when choosing a bank
Compare the different minimum balance
Different banks have their own policy on the minimum balance that you need to have in your account. So before you get to open an account with any bank, you need to checkout for their minimum balance and compare different banks so you can choose the one that is really low and OK.
The importance of customer service cannot be overemphasized especially in the banking sector. You need to know how the customer service of your to-be bank addresses issues bothering their customers. Nobody wants a bank that remains dormant when their customers are having issues with their transactions. You need a bank that is quick to action when a customer reports any problem to them.
Interest rates are also an important factor to consider when choosing a bank to bank with. You need to know the banks interest rates on deposits and what it charges when you get a loan. Check and compare ATM fees, overdraft fees and low balance fees. You need a bank that does not charge you on ATM withdrawals. Also check if there are charges when you do online transactions.
Compare the banks that you have in mind and make sure the one you want to bank with has other branches in different locations. Any bank you have in mind should be well-known and not a new bank that marketers just want to get customers to bank with them.
Security of your funds
You need to research on the bank’s financial stability, knowing that your bank is insured by the Federal Deposit Insurance Corporation (FDIC) is one way you can know that your funds are secure.