The times of cash and conducting business without bank accounts, invoices and tax reports are long gone. Banks have been around for centuries but have entered the world of average, lower class people in the last few decades. Before that, we imagined bankers as people dressed smartly who only engaged with esteemed businessmen and rich entrepreneurs. Nowadays, banks are in charge of handling financial needs of people from the top and the bottom of the social hierarchy. But how does an average person choose the right bank for his needs? Here we will tell you a few words of advice.
Types of banks
There are four basic types of banks, and all of them have their advantages and disadvantages. The first type is the large, corporate-type banks which span continents and work in many countries around the world. They have gigantic customer bases and have thousands of branches and ATMs in many cities and countries. The second type is the online-only banks. These banking companies work without the traditional brick-and-mortar locations. This means they can cut their overhead costs significantly. This relates to lower interest rates on loans and better rates on checking and savings accounts. Then we have the community banks.Usually much smaller when compared to multi-national corporate banking giants, these banks are local in character. Some of them have grown to have a regional impact. Finally, credit unions are also closely connected to their communities and do not spread to multiple states, but have a different structure compared to community banks.
Main factors to consider before your choice
Among the many factors to think about, here you can read about a few most important ones so you can make the correct choice.First of all, mind the deposit insurance. Avoid banks which do not offer this option. This type of insurance means that your accounts up to 250.000 dollars are safe if the bank fails.
The next thing to look after are the fees, of course. Do a sweep of banks which are convenient for you and check which one offers the best rates. For example, see which service you use the most: ATM, checks, savings accounts, etc. Then take a little time to understand your banking needs and financial habits and choose the bank which offers the best rates for your needs.
Furthermore, there are many bank accounts you can choose from. Checking accounts, savings accounts, money market account, rewards checking account. All of these have a specific function and cost more or less compared to others. Choose the one according to your needs.
Banks offer other services than simply accounts. For example, loans – car loans, mortgage loans, credit cards… Each of the banks offers different rates, and these loans can be quite expensive. But, if you do your homework, you can save a lot of money if you choose the right bank.
Finally, customer service is often neglected, but it is one of the most important aspects of modern banking. If a client does not feel good or he thinks he is being treated unfairly or without proper respect, he will simply walk away to another bank.