Opening a new bank account?
Here are 8 questions you should ask before you do
Even as our world gets more digital, banks play a key role in our ability to manage our money. Whether you’re completely new to banking, moving to a new town, or simply not satisfied with your current bank, these eight questions will help you make the right choices about your money.
1 IS THERE A MONTHLY FEE, AND IF SO, HOW CAN I AVOID IT? Many banks charge monthly fees for their basic checking and/or savings accounts. Those fees often are easily avoided, however, by qualifying for one of the bank’s exceptions.
2 WHICH ATMS CAN I USE FOR FREE? Most banks allow you to use their own ATMs at no cost, but your bank may not always be the most convenient way to access cash when you need it. Using an out-of-network ATM could cost you fees from your bank as well as from the ATM owner and/or network. Some banks, however, belong to networks that allow you to access all ATMs within the network for free.
3 IS THERE A COST TO PAY BILLS ONLINE? Your account may be known as a checking account, but with online bill-pay services, you may never have to actually write a paper check. Many banks offer free online bill-payment services, but a few have fees attached.
4 CAN I MAKE MOBILE DEPOSITS FOR FREE? Your bank likely has a mobile app that lets you deposit checks from your phone. Most banks offer that service free, but some may charge for the convenience. Still others offer free mobile deposits but put a hold on the money for several days, though the bank might then offer you access to a given deposit faster for a fee.
5 WHAT INTEREST RATE WILL I EARN? Most banks offer some interest on their savings accounts, though the national average is around 0.09%, according to Bankrate.com. On checking accounts, if interest is available, rates are frequently lower than savings accounts, and you need a larger balance to qualify for the best rates.
6 WHAT HAPPENS IF I SPEND MORE THAN I HAVE IN THE ACCOUNT? If you overdraw your account, your bank may deny the withdrawal and charge you fees, and those fees may very well hit on every attempted overdraft. Many banks will allow you to link your checking and savings accounts so that there’s an automatic transfer if one account is overdrawn, though those automated transfers may come with a fee, too.
7 HOW CAN I GET HELP IF SOMETHING GOES WRONG? Your bank may have nearby branches that you can walk into to ask for help. If you have an Internet-only bank or use a bank from out of town, you’ll have to rely on phone, Web chat or email to resolve any problems.
8 WHAT’S IN IT FOR ME? In addition to interest on your accounts, many banks offer rewards programs for things such as using your debit card to make purchases or having a credit card as well as deposit accounts with the bank.
When you open and fund a deposit account, it’s your money in the bank. The better the overall package the bank offers for your needs, the happier you will be entrusting your cash to that institution.