Choosing the Right Bank for You

by Miriam Caldwell | More from this Blogger

16 Nov 2006 08:52 PM

If you are new to the area or opening your first checking account, you should do some research. Different banks offer different accounts. It is important to look for hidden fees (they really do exist) and other benefits that the accounts can offer you. You should also take into account convenience of locations and/or ATMs as this may affect your choice depending on your account. Here are five steps to making the right choice for a checking account for you.

1) First you need to go online or go to the different banks and credit unions that you are considering and ask for a brochure explaining the different checking accounts. The accounts should have an outline explaining minimum balance requirements, ATM fees, transaction fees, check writing fees and other services the banks will offer you if you bank with them.

2) Next you should decide what you amount you are comfortable with as a minimum balance. There are benefits to having a higher minimum balance. You can receive services such as traveler's cheques, money orders and official checks for free. Many banks also have interest bearing checking accounts if you are willing to carry a higher minimum balance. However if you drop below that balance by one dollar on one day of the month you will be charged a fee. This fee is usually about ten dollars, though it varies from bank to bank.

3) After you have decided your minimum balance level you should begin to read the fine print of the brochure. Ideally you should find an account with unlimited check writing, and debit card use. Many accounts limit the number of debit card transaction you can do for free every month, and then they charge a per fee transaction. This can also be true of ATM transactions, and teller transactions. Some banks also charge for using the phone service to verify your account balance.

4) Next you will need to look at the service fee that is charged for having an account with them. This varies from bank to bank, and can be waived due to different services or promotions. Many banks will offer "free" checking if you have direct deposit, so you may want to consider this as well.

5) Once you have narrowed the banks/credit unions down to one or two you should go online and check their locations. It can save you a lot of money in ATM fees for the bank to have several ATMs and branches conveniently located to you. You may also want to visit both banks, and decide which one treats you better as customer. (Though this will vary from branch to branch.)

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Learn more about Miriam Caldwell

Miriam is a SAHM mom of three children. She has a daughter who is seven, and two sons, four and two. She loves being a parent and spending time with her children.

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