Choosing a bank account can be challenging. There are many types of accounts, and each account comes with benefits, and potential drawbacks. Some accounts require minimum balances and incentives for high balances. Others are more suited for day to day accounts that support bill pay and transfers.
The company you bank with may impact your decision as well. For example, you may prefer a local bank or credit union over a national bank. Before you start researching accounts and banks, decide what you want to accomplish. What is the bank account for and what are your goals for the account?
Once you have that information, you can then use the following tips to help you decide.
-
Customers who regularly spend more than their account limits should consider accounts that give an overdraft to the agreed limit without charging fees, or that have reasonable interest rates. Additionally, you may face monthly fees if you don’t maintain a minimum balance. Other fees might be charged for bill pay, transfers, and other transactions.
It’s always a good idea to explore your options and to choose the bank that best suits your goals. As you’re talking to representatives and taking steps to open an account, don’t forget to ask about penalties for closing the account. Make sure you won’t have to pay any fees if you ever need to close your account. Finally, read everything through carefully before you agree or sign anything. Make sure you understand the account terms clearly and have made the best choice for you and your banking needs.
Tags: Banking Advice, banking fees, Checking, savings account