Choosing the right commercial bank involves several factors. For most common taxpayers this can be a daunting and mundane process of decision making. From choosing a bank that has the right mortgage rates and programs for your first home purchases to buying your son or daughter their first car with a vehicle loan.
Here are 10 keys to consider:
Services Offered: Look for banks that provide the specific services you need, such as checking and savings accounts, loans, and credit cards. More specifically, look at their investment services, HSAs and Roth IRAs are great tax advantage accounts and are a plus if your bank can provide them.
Fees and Charges: Compare account fees, transaction fees, ATM fees, and any other charges. Some banks offer no-fee accounts, while others may have monthly maintenance fees. More specifically, be cautious of banks that have ridiculous fee practices. One client informed us in the past that their bank would charge an overdraft fee of $35.00 then if the fee and balance were not paid in 5 business days, they would charge another $35.00. Yikes!
Interest Rates: Check the interest rates for savings accounts, loans, and credit cards. Higher interest rates on savings can help your money grow, while lower rates on loans can save you money over time.
Accessibility: Consider the bank’s branch and ATM locations, as well as their online and mobile banking options. A bank with a strong digital presence can offer convenience.
Customer Service: Research the bank’s customer service reputation. Read reviews and consider how easy it is to get support when you need it.
Security: Ensure the bank has robust security measures in place to protect your personal and financial information.
Account Features: Look for features that may be important to you, such as mobile check deposits, budgeting tools, or rewards programs.
Reputation and Stability: Check the bank’s reputation and financial stability. Established banks with a good track record may offer more security.
Promotions and Bonuses: Some banks offer sign-up bonuses or promotional rates for new customers. These can be a nice incentive but be sure to read the fine print.
Personal Recommendations: Ask friends or family for their experiences and recommendations regarding their banks.
Pryor Insights
Taking the time to evaluate these factors will help you choose a commercial bank that best fits your financial needs and lifestyle. Do not take these important steps lightly and take the time to research.
These important decisions determine where your paycheck is directly deposited, who holds your home mortgage, if you can dip into your retirement account(s, and for how much, and much more so please be thorough!