Banking smart doesn't have to be hard and can be a simple way to grow your money with minimal effort. With this guide, you'll have a better understanding of your financial needs and how to choose the right bank for you.
Key Features of Bank Accounts
To begin, it's important you understand these three key features of any bank account:
1. Interest Rates and Fees
These expenses can help you earn money and save big, affecting how much interest you'll earn on your money, and how much you'll pay in monthly, annual, overdraft, or additional miscellaneous fees.
2. Balance and Transaction Requirements
Your account may require a minimum balance for initial opening and monthly maintenance. Additionally, there may be limits and fees regarding the amount of monthly transactions you can make.
3. Features and Benefits
These add-ons can add great value to your account, including online bill pay, alerts and notifications, budgeting and tracking tools, cash-back rewards and perks, security and protection, and access to surcharge-free ATM networks.
Comparing Bank Features
Next, it's key to do some bank comparisons. Comparing different bank features, including APY rates, fees, account types, digital offerings, and more, is the simplest way to find a bank that aligns with your needs.
APY Rates
The annual percentage yield
(APY) is the amount of interest you can earn on your money in a single year. The higher the APY, the more money you make.
Generally, savings accounts offer higher APY rates than checking accounts but more restrictions, such as minimum balance requirements and monthly withdrawal limits.
Fees
Some common bank fees include monthly service fees, overdraft fees, non-sufficient funds fees, and ATM fees.
Certain banks, especially online banks, may waive some or all of these fees if you meet certain criteria, such as maintaining a minimum balance, setting up direct deposit, using online tools, or joining a loyalty program.
Account Benefits
Bank accounts offer different features and benefits that can help you manage your money better.
Common types include debit cards, checks, online and mobile banking, bill pay, alerts and notifications, budgeting and tracking tools, cash-back rewards and perks, security and protection, and access to surcharge-free ATM networks.
Decide What Type of Bank You Want
Finally, it's important to consider what style of banking you prefer, whether that's in-person, online, or a mix of both.
Traditional Bank
Traditonal banks operate with physical branches and ATMs, but they may charge higher fees and offer lower interest rates than their digital counterparts.
Online Bank
Online banks operate entirely online, often including regular access to ATMs and customer service.
Which Style is Right for You?
- Do you prefer in-person or digital service tools?
- Do you need extras, like loans, investments, or insurance?
- How easy is it to communicate with the bank (online chat, phone, in-person)?
- What rewards or incentives are available?
- Does the bank have a good reviews?
Consider Online Banking for Great Rates and Bigger Savings
Online banking is a convenient and secure way to access and manage your money from anywhere, at any time. It can help you save time, money, and hassle, and give you more control and freedom over your finances.
Key Advantages
- Higher interest rates and fewer fees
- Easier access to accounts
- Free spending and budgeting tools
- Competitive cash-back rewards and perks
Find The Right Account for You
No matter your choice of banking, digital or in-person, the best way to find the right account for you is to do careful comparison of features like APY, fees, benefits, and customer reviews.
Ready to get started?
Now that you're equipped with the skills and knowledge to compare banks, check out our side-by-side reviews and find the best choice for your financial needs.
