Choose a bank

elect the right bank, and give your finances a much-needed boost. Most people don’t realize it, but they often select banks based on advertisements or because a branch is near a shopping center. While convenience is important, it shouldn’t be your only factor for choosing a bank. For Ashton Adcock, chairman and CFO of Merchants and Farmers Bank, there is one simple rule of thumb he advises customers to use when looking for a bank.

“Seek to do banking business with people you like and trust — bankers who treat you like a friend,” he said.

Consider these aspects when selecting a bank.

Like many other businesses, banks want to be competitive. Interest rates are one way they entice new customers. It is not uncommon for the savings-account interest rates to vary widely, but the majority of institutions make adjustments according to changes in the federal-funds rate.

You might think interest rates are inconsequential, but when substantial deposit amounts are involved, the difference can be significant.

If you go to your bank frequently, it can be important to have one conveniently located. However, with the industry's technological advancements, the term "convenience" extends to a customer's ability to bank from anywhere 24/7.

“Convenience can include the ease of use of products and services, such as internet banking, internet bill pay, mobile banking and the ability to talk to a banker who is willing and able to assist you with a banking issue,” Adcock said.

These days, it is important to consider a bank’s stability. Before you entrust your money to an institution, check its history and financial condition.

Typically, banks invest deposited funds under a fractional reserve banking system. Any bank with a strong balance sheet should be able to weather any turbulence caused by market corrections. Regardless, you should not worry about the safety of your money if it does not exceed the Federal Deposit Insurance Corporation's coverage of $250,000.

Most banks offer a variety of services. Whether you need to get a loan or open a checking account, choose a bank that fulfills your needs with the fewest fees.

“Most banks offer similar services and products; however, ease of use, charges for use and support offered are areas where a bank can differentiate itself from others,” Adcock said.