There are over thousands of different banks that offer many different financial products for their members. However, you should know the basic features of an account when picking the best bank for you. Knowing their perks well help you decide which account will benefit you the most.
Continue reading below to see more information on the basic features of a bank account.
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Interest & Insurance
Whenever you bank with a brick-and-mortar, there is a possibility that it will come with an APY (annual percentage yield). However, keep in mind that you are able to gain more for your savings, especially if you pick an online bank instead. At the moment, interest rates are getting lower.
Keep an eye out for who your bank is insured with. FDIC or NCUA insurance is what you need to look for before you choose to bank with a specific one. With the FDIC insurance, it will secure your money and guarantee money in the deposit account for no more than $250k. In other words, if your bank fails to keep your money safe, you’ll get the money back.
ATMs & Fees
Check to see if your bank or credit union offers ATM networks. With your checking account, there are options for accessing your cash free of charge. There are several traditional banks that don’t offer free cash access at all. Now, online banks are able to offer their members with free access to tons of ATMs around the nation. Some banks will refund ATM fees as well.
Remember, there are fees that are included with any bank or credit union you choose. There are lots of different fees that your bank can charge you, look more into it before signing up. Plus, you can even withdraw money from your bank account. Financial institutes will offer a minimum requirement, some will be beneficial, others will be astonishingly high. Not meeting bank requirements or being below their minimum will result in them charging you an additional fee. It makes more sense for a money market account, but isn’t ideal for a checking account.
Accessing Online
Many banks will offer online services and products that benefit their members. They will have websites and apps that will make accessing your account much easier. Plus, you can transfer money online once you set up your account to do so. But, when you transfer money between different banks, expect it to take a couple days.
Some banks will charge you a fee to access your account online. Other institutes will understand that many customers would prefer to view their account when they want, so they will offer this service for free. With the online banking option, you can also check if they provide mobile banking as well. These features are very convenient for customers to have.
Overdraft Fees
Overdraft fees can go downhill fast. The average for well known bank brands will be around $35-$40. However, there are several substitutes that you can look into for a cheaper price. To cover overdrafts, some banks will allow customers to transfer from a savings to checking account for free. In other words, you don’t have to pay a fee and have your transaction cancelled. Keep in mind, that overdraft protection fees can affect your credit.
Bank Services
Normally, banks will provide their members with a customer service to answer their questions. Making you feel valuable at their establishment should reflect in how well they assist you. Going to your bank for any of your questions and concerns, ask yourself these questions:
- Are your bank tellers nice?
- Do they answer your questions clearly?
- Can you make an appointment with a manager?
- Are you satisfied with their service?
A bank that provides clients with great service is a good bank. However, if customer services don’t answer all of your questions, check if you’re able to book an appointment. If not, most banks will have phone services or an email you can contact.
High Yield Accounts
Everyone wants more for their money’s worth. In this case, a bank that gives you high yield accounts is excellent. Most banks will offer different varieties of savings accounts and special promotions. Plus, there are interest bearing checking or Certificate of Deposit accounts you can ask for as well. Majority of the time, a local bank will have amazing competitive rates.
Linking Your Account
There are several perks to connecting your bank accounts together. Once you link your checking and saving accounts, it will help you with overdraft. Some banks will have this feature with a transfer fee as well. However, the transaction fee is much cheaper than paying for overdraft protection. Plus, when you link an account, moving money from your checking account to your savings account is much easier.
Conclusion
Overall, many banks will offer many different features. Picking which bank to sign up with can be a tough decision. There are many things to look for in a bank account. These are some of the basic features that makes a bank or credit union worthy of investing into. However, if you still need help picking a financial establishment, check out our best bank bonuses.
