Choosing the Right Banking Partner: A Helpful Guide
June 13, 2024
One of the most important financial institutions in your life is your bank or credit union. It is the conduit for most of your financial transactions, receiving your paychecks, facilitating payment of your expenses and bills, and more. So, it’s important to choose your bank partner well.
Whether you’re actively looking for a new bank or not, read through the following suggestions. It might be that it’s time make a change. If so, doing that is not as difficult as you may assume. Here’s what to look for.
- The right products and services. What do you need in a bank? Just a checking account? Most should have that. What about a savings account, with the option for a higher-rate money market account? If you have kids, does the bank offer accounts designed with their unique needs in mind? Are you looking for a credit card? Will you need a home or car loan sometime in the near future?
Think about your needs and choose a bank partner that offers the products and services that will best meet those needs.
- Low minimums and costs. One benefit to look for in a bank partner is ease of use. That means your accounts should be simple to manage, with low minimum required balances and low or no fees. So, find out what the bank you’re considering requires and charges. What are the minimums for opening a checking or savings account, and what ongoing minimum balance requirements are in place? Are there any fees involved in opening accounts? How much does the bank charge if your balance should happen to slip below what’s required?
If you’re in the market for a loan, does the bank offer favorable rates?
- ROI. Along with low or no fees, how much does the bank pay in interest on money kept in its savings accounts? Does it offer high-interest CDs? Does it pay interest on checking accounts? Is it offering any incentives for opening a new account?
- Convenience. For many people, convenience is king. If that’s you, does the bank you’re considering offer online banking, with mobile deposits and online bill-pay? Is its app intuitive and easy to use? If you like to use ATMs, how many does the bank have and where are they located?
- Compatibility. All of the above are fairly normal criteria for choosing a bank partner. It makes sense to look into a bank’s products and services, its fees, and interest rates. What isn’t so normal—and yet, is so important—is to see if the bank you’re considering is one you can feel good about doing business with.
Here’s a suggestion: Do an internet search on the name of the bank you’re considering and the word “fine.” See what comes up. Has the bank been penalized for running afoul of any financial industry rules or regulations? Has it been found to have done anything illegal? You may be surprised to see how common this is.
It will give you added satisfaction and peace of mind to do business with a bank that operates with honesty and integrity.
Partner with an institution that enables you to bank with your Christian values! Unlock exceptional growth with CCCU’s Harvest Savings account! Earn a remarkable 5.00% APY* interest rate while supporting the expansion of churches and ministries with every deposit. Plus, maximize your earnings by bundling a Harvest Savings account with a Harvest Checking account at 4.00% APY**, and enjoy the convenience of managing both accounts in one place. Click the link below to learn more!
Matt Bell is the author of Trusted: Preparing Your Kids for a Lifetime of God-Honoring Money Management. He speaks at churches and conferences throughout the country and writes the MattAboutMoney blog.
This article should not be considered legal, tax, or financial advice. You may wish to consult a tax or financial advisor about your individual financial situation.
