How to Choose a Bank Account for the First Time
Choosing a bank account can be stressful if you recently moved or don’t like your current provider. It’s even more important to choose a bank account when you’ve never had one before. Having a bank account is likely a permanent decision. You don’t switch bank accounts very often, so it’s very important to choose the right bank account upfront.
I’ve been banking with Wells Fargo even despite the recent bad press surrounding the company. Choosing the right bank account shouldn’t be a draining exercise. Just follow these tips to choose the right bank account for you.
Three Tips to Choosing the Right Bank Account for the First Time
Choosing a bank account has several key characteristics that you should follow before you make a decision. Let’s get into our favorite tips for choosing a bank account for the first time.
- Convenience is King
Choose a nationally renowned bank provider, so you have access to in-branch services or automated teller machines (ATM) around the country. There’s nothing better than being able to withdraw cash without any fees from anywhere in the country.
Also, you want to have a bank that can process your requests efficiently and effectively. Bigger banks usually have better technology for linking up your routing numbers with other accounts. This is very important in our technology-based world we live in. Here’s how routing numbers work and are calculated.
- Find a well-capitalized bank
A bank’s balance sheet should be of utmost importance for any person opening a bank account for the first time. While nearly every bank across the country is insured through the Federal Deposit Insurance Corporation (FDIC).
The FDIC is a United States government corporation that provides deposit insurance to customers of banks and savings institutions, so you can likely get your money back if the bank goes under. However, that is a messy process that you likely don’t want to be in. Avoid the worries and find a bank that is well-capitalized.
- Develop a relationship with a bank that provides multiple services
If you bank with a company for a long time, there’s a likelihood that they will provide you special bonus opportunities due to your loyalty. I’ve seen several people develop outstanding relationships with a particular bank and they save thousands on their mortgage due to that relationship.
- Find a low-cost provider
I can’t believe how many banks nowadays charge for hidden fees and fees to just have an account open! Banks already use your deposit money to lend to people at higher rates. That’s how they make money… You shouldn’t ever pay money just to have an account open with a bank. Find a provider that charges little to no fees to be a customer.
Conclusion on Choosing a Bank for the First Time
A bank is obviously very important for your everyday life. You use it for income, expenses and for helping you better your financial future. Use our tips right upfront to ensure you make the right choice and don’t have the hassle of switching banks because of not choosing the right one upfront.
Make the most out of your financial future and start investing today to ensure you can live freely in retirement. Use a dividend calculator that will show you exactly what it will take to retire or live financially free.
What bank accounts do you like the most? Let me know in the comments below. I’d love to hear from you.