How to Compare Banks

Know your bank's fees ahead of time.

There once was a time when a bank was merely a place to store your money. Banks have since evolved and so have the needs of their customers. It is not unusual to carry a credit card that was issued by your bank, pay bills with the click of a mouse, and have your bank balance updated to the minute to ensure its accuracy. If you not satisfied with what your current bank has to offer, or are just curious about other banks' programs, you can compare banks to find the institution best suited for your day to day financial needs.

Instructions

1. Consider the availability of the banks you have to choose from. This is a crucial factor in comparing banks if you travel frequently. Having a branch of your bank nearby no matter where you are can save time and money if you find that you need travelers checks while out of town or frequent the ATM for cash. ATM fees from other banks can add up quickly. Any banking issues can be quickly resolved no matter where you are if there is a branch of your own bank nearby. In addition, a widely available bank can come in handy if you plan on moving in the future. It can prevent you from having to move your checking account to a new town along with your furniture.

2. Evaluate the service you receive. Take a trip to several banks and take note of if you are greeted when you walk in the door. If bank representatives are friendly and eager to demonstrate why their bank is the best bank for you, that is a sign of good service. A quick acknowledgment and "I'll be with you in a minute." is not. Also pay attention to the way other customers are treated. Just because one bank employee treats you kindly does not mean that others will as well. Take all aspects of the bank's service, including lines and wait time, into consideration.

3. Calculate the costs and fees of the services you use and compare the costs at various banks. If your checking account balance is often low or you incur several overdraft charges a year, focus on comparing the amount of overdraft fees banks charge or the availability of overdraft protection programs. If the majority of your purchases are made with a debit card, evaluate the per debit fees and debit card rewards programs offered by the banks in your area. By focusing on the aspects of banking that you use the most, you can save yourself the most money.

4. Ask about special programs you may qualify for. Some banks will reward you with free checking, free checks, or other special incentives for your membership in a certain group. Students, senior citizens, and members of the military often qualify for special programs. Other banks offer rewards for teachers, medical professionals, firefighters, and city employees. Depending on your affiliations, you may be able to save money and qualify for incentives that your current bank does not extend to you.

References

• Five Things To Consider When Choosing a Bank