Whether you’re moving to a new neighborhood or city, you’re tired of your bank’s policies or fee schedules, or you’re just looking for additional account benefits, sometimes it makes sense to switch banks. But it can take a bit of time and effort to make the switch (particularly if you’re using your current bank’s online bill pay service), so it’s important to make sure you’re making the right decision for you and your money.
It’s also essential to make sure that you’re basing your decision on solid financial reasoning before you go through that time and effort.
Ask the following questions before you switch banks to ensure you’re putting your money in the best place possible.
How Large A Balance Is Needed To Avoid Fees? What’s the minimum deposit required to open an account? Is that something that’s feasible for you? Does it make sense for your current financial condition? Also look at the minimum balance required to waive monthly account fees. Make sure that the minimum balance is something you can maintain each month. Additionally, some banks require a direct deposit or a recurring payment through their website to avoid monthly service fees. Investigate their requirements and make sure you’re willing and able to meet them.
How Much Interest Is Paid On Deposit Accounts? Does the account pay interest? If so, how much? And again, do you need to maintain a minimum balance to earn interest?
What Fees Do They Charge? In addition to the monthly service fees, you should check other checking account fees like insufficient funds fees, ATM fees, stop-payment fees and account closing fees. Add it up and make sure this potential new bank makes sense for you.
ATM Network? Most banks and credit unions participate in a network of ATMs and machines are readily available and convenient as well as free to use. Yet it makes sense to make sure there are no ATM fees for using out of network machines, and that the network fits your ATM needs.
Is There Overdraft Protection And If So What Are The Options And The Costs? Hopefully you don’t have a need for overdraft protection. However, at some banks the protection is free and it can be a nice convenience. If you do need it, investigate the fees and make sure you understand your options before you change banks.
How Quickly Are Your Deposit Funds Available? Many banks credit your account instantly when a deposit is made. For some banks it depends largely on how you make the deposit. For example, it may take 24 hours for your account to be credited if you use the bank’s tellers. However, if you deposit via ATM it might be available right away. If you make frequent transactions it can be helpful to know how long it will take before your funds become available.
Finally, in regards to incentives and applications, bank rewards programs and mobile banking are growing trends. If these incentives are important to you, make sure your new bank offers them and doesn’t charge a fee.
Tags: atm fees, Banking Advice, Checking, checking account, switching banks
This entry was posted
on Tuesday, August 27th, 2013 at 2:23 pm and is filed under Checking.
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