subject: How to Choose a Bank [print this page] How to Choose a Bank How to Choose a Bank
Banks are necessary and convenient for your financial transactions. Whether you need a safe place to keep your money, or receive payments, banks are indispensable. Even if you are planning to make investments, write checks for purchases, or take a loan, a financial institution can help you with these tasks. Choosing a financial institution according to your needs will make it easier for you to manage finances.
There are different kinds of banks, depending on their size, area of expertise, and so on. Here's how to select one-
* Choose a financial institution which is insured by the National Credit Union Administration, a U.S. government agency. This will ensure that your savings are federally insured till $250,000.
* Compare charges of different institutions in your area. Keep in mind the kind of transactions you make most frequently, to know which charges you will be paying the most.
* You should know which services attract extra charges. For instance, seeing a live teller, bill payments, and closing your account can all attract additional fees.
* Consider banking at credit unions, which are member-owned. Unlike commercial banks, they do not have to pay stock dividends, so their charges are usually lower.
* Look for financial institutions which offer a checking account that can be linked to another account. If you link your savings account, for instance, it is possible to offset the balance requirement for the checking account.
* If you use ATMs often, look for a financial institution which has many ATMs, located conveniently all over your area.
* Direct deposit checking accounts are often free or low-cost, because financial institutions do not need to process paper checks. This enables them to save money, which they pass on to their customers.
* Find out what is the minimum balance you need to maintain in your savings account. If you're unable to keep that amount in your account, you may have to pay penalty charges frequently.
* The service provided by the financial institution is also important in deciding whether to bank with them. Is the staff of the financial institution welcoming, knowledgeable, and experienced?
Doing a little research on available options before deciding on a financial institution will save you trouble in the long run. Large, established ones may inspire more confidence than small, new banks. Tucson has Vantage West Credit Union; with over $1.1 billion in assets. This makes it the largest credit union in Southern Arizona, so you can be assured that you are making the right decision by choosing them!
