Finding a New Bank
When comparing banks to find the right one to meet your needs,
it's important to explore all of your options. Gather
information from several different banks and compare the account
options that each offers to their interest rates.
Some banks might offer exceptional rates but with relatively few
options. Others might have a wide variety of account options but
offer horrible interest rates.
First Steps
These steps are the most important when choosing a bank.
Following these steps ensures the legitimacy of your bank's
transactions and the financial security of the institution.
Generally, these steps apply more to online banking, but it's
always a good idea to research locally owned banks and new
corporate banks as well.
1: Make sure that you confirm the bank's insurance status. Your
deposited money should be insured by the government. If a bank
has this insurance, it will have an FDIC logo, "Member FDIC", or
"FDIC Insured" written on the main page of the website or on
their information pamphlet. FDIC is the Federal Deposit
Insurance Corporation. It safeguards the initial $100000 of
deposits that are payable in the United States of America . Not
all Internet banks are FDIC insured, but many are. The UK , for
example, has its own deposit guarantor for banks, but may also
be FDIC insured.
2: The next step is to verify the bank's deposit insurance
status. Here we will show the example for a US bank. The similar
process exists for banks in UK . The FDIC online database lists
all FDIC insured banks. This database allows you to search
though all FDIC organizations. You can specify such search
criteria as the name, city and postal code of the bank. Make
sure that the banks that you are considering are on that list.
You may also gain additional information about the banks here.
3: The next thing to check when you are looking at different
banks is their privacy policies. All banks are required to
provide you with the copy of their privacy policy, whether on
paper or in online form. This policy will let you know how the
bank will use your personal and financial information and how it
will protect it. You should look for such things as the
statement that this institution will not sell or give your
information to anyone.
4: Find out what complaint mechanisms and customer service
options are offered. Look for such types of support as the
customer service information, the bank's phone number and online
chat customer support. The more support offered by the bank, the
better.
Interest and Options
Interest rates are going to have the most effect on any type of
account that you wish to open. Check to see what rates are being
paid for savings and money market accounts, as well as whether
or not interest is paid to checking accounts.
Account Options can make your banking experience much simpler.
There should be several different options for checking, savings,
and other accounts. If a bank only offers very basic services,
you might do better elsewhere, unless the interest rates they
offer are well above average.
Minor Considerations
Online account access can add a new level of convenience to your
banking experience. It enables you to check your balance,
transfer funds from one account to another, and even see which
cheques have cleared the bank from the privacy of your own home.
Corporate vs. local
Another minor consideration is whether the bank is part of a
national or worldwide corporate chain or if it's a locally owned
and operated institution.
Corporate chain banks tend to have much more support from their
corporate office, but are usually limited in the services and
concessions that they can offer without approval from a higher
authority. Corporate chains also often offer more ATM access and
account options abroad.
Local banks, on the other hand, are usually able to handle most
matters in-house, as the owner is usually an individual within
the community.
Shopping around
Compare and contrast a variety of bank options so as to find
best deal that fits your needs. By taking the time to compare
your available options and shop around for the best deal, you're
much more likely to find the bank that's going to give you the
best experience.
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