Choose the right bank & bank account

Choose the right bank & bank account

Whether you moved to a new city and are looking for a new bank, you want to open an additional checking account or are opening your first account, here are the things that will help you choose right. Also, fnd out which bank account suits you the most!

Which type of bank is right for you depends on how you plan to use it. This is why your needs and lifestyle are what will weigh most in the decisión. These are the things you should consider when choosing where to bank:

1. Consider the bigger picture

Sometimes, for example, low-cost accounts come with so many restrictions that they’re not as helpful as you expected. Some banks make their best rates dependent on having a minimum deposit each month, a minimum balance or even a minimum number of transactions.  So, though a very low mortgage rate may be tempting, for instance, you must analyze all the other terms and conditions of your contract as well.

2. Pay attention to the fees

It’s no news that bank accounts often come with fees. But how much you’ll pay and when you’ll pay fees can often depend on how you use your account or on how much money you have.

Account fees include:

•    Monthly account maintenance fees
•    ATM fees, (especially if you use another bank’s ATM)
•    International transaction fees
•    Internet banking fees
•    Overdraft fees

So, if you draw money out of the ATM regularly, for example, you should choose a bank that has one close to you to avoid that expense.

3. Analyse different bank types

Retail banks, which offer basic banking services to consumers, are the most appropriate for everyday banking. Among these, you can choose traditional banks or an online bank. This decisión will be influenced by how tech-savvy you are or how important being attended to by a person is for you. If you are eligible to join a credit unión this is another option you should look into.

4. Look for appropriate products and services

In addition to basic bank accounts, most retail banks generally let you open checking and savings accounts, credit cards, loans, and safe deposit boxes. Some banks go beyond and offer features like smartphone apps, which can be important if you're always on the go. What benefits are important to you will depend exclusively on your lifestyle. 

Note: the same happens with the rewards a bank gives. You must be sure they fit your actual habits and not be tempted by things you won’t use or will make you spend more money than you do actually.

5. Consider the interest

The balance in certain accounts like savings accounts accumulates interest. Online banks and credit unions tend to pay more interest than traditional banks.

The bank you choose, therefore, should be in accordance to your needs, to the type of life you live today and the life you want to live in the future. That is why all these elements must be analyzed carefully to make the right choice.


Once you have decided what type of bank meets your needs best, you have to choose what account to open. Here are some tips to avoid classic mistakes:

1. Set a goal 

The reason you have for opening an account will determine the type of bank account you should open. You won’t choose the same type of account if you want to park your cash for a long or short time. What you plan to do with your income is the main decisión factor, so your first step must be deciding hHeading 3ow you want to spend and save your money.

2. Choose the right account type

Pick a bank account that adjusts to your goal. For example, you might choose a checking account for everyday banking, including depositing your paycheck, withdrawing cash and paying bills or a savings account if you want a safe place to store your money and be able to access funds quickly.  You'll need a money market account for your emergency fund (for they hold cash that you won’t need right away), or a certificate of deposit (CD) for your long-term needs.

3. Look out for the fees

 Fee schedules vary by account type. Check out monthly maintenance fees, early withdrawal penalties for CDs, overdraft fees or out of network ATM fees, for example, to determine if you can afford the account you want to open. Some free accounts, with no monthly fees, still exist, and it may be worth taking the time to find one.

4. Consider the minimum balance requirements

Balance requirements also vary from one account to another so analyzing them is important. You might be better off opening a free bank account if your usual average balance is low or middle-of-the-road, to avoid paying maintenance fees if you choose an account with a balance requirement that overextends you financially

5. Check the transaction limits

Savings and money market accounts limit your withdrawals or transfers in a month. Checking accounts aren't as restrictive, but may only allow you to make debit card purchases and ATM withdrawals of up to a certain dollar limit each day. These limits must be taken into account too.

However, in any account you open, the basic thing you will be seeking is low costs and high rates. This is why it is important to read carefully the terms and conditions of your contract to not encounter surprises further on. It only takes a few minutes to open an account online or at a branch and you don’t need to keep all accounts under the same roof. So look into all the options and mix and match to fit your needs.

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