How to Choose Your Bank or Credit Union

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By Patricia Gilliam
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When you first start out on your own, there are often some decisions that get made on impulse. Many people choose the same bank or credit union as their parents. Others are lured by the modern versions of "free toasters"--cash, gifts, and rewards for opening up an account. How do you sort through all the choices? In this article, I'll give you some impartial tips to consider.

Difficulty: Moderate

Instructions

Things You'll Need:

The desire to choose a bank or credit union

Step 1

First, you need to determine what services you need (can't compromise on) and want (would like to have but could do without). Determining what's most important to you will make sure you will find a good fit from the beginning--keeping in mind that there may actually be more than one option that is good.
Step 2

It is helpful to not only look over the bank and credit union websites but to do general Google searches on your possible choices to find out if any customers have had major issues. Keep in mind that the larger the institution, the more complaints you're likely going to find just because of the larger customer numbers. If it seems to be a pattern however of the same issue, you may want to move on to another choice. The Better Business Bureau and Federal Trade Commission websites also have consumer resources as well.
Step 3

Talk to different people you know, including family and friends. Ask them about the positive and negatives about where they have their accounts. This can help you narrow down a larger list.
Step 4

Physically go to the branch you plan to use, preferably on a busy day if you have time. Watch how customers are treated, especially if they have a problem. Wait through the line and then just ask for some information about their savings/checking plans. Ask if there are any promotions available, but give yourself time to think about it and compare between different options.
Step 5

Fees are a very important topic to investigate. Some institutions have what I call "anti-savings" accounts--meaning the monthly maintenance fees not only take your account's interest but basically charge you for having money in the account. Keep in mind that most credit unions do have a one-time membership fee but generally have lower or even no fees compared to many banks.
Step 6

Last, think about your future needs. It's often less of a hassle when you have everything through one company instead of spread out across several. Good luck and best wishes in your search!

How to Choose Your Bank or Credit Union

Things You'll Need:

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