How to Choose a Bank for Your Checking Account

Your money habits, income, and service preferences are different from those of your friends. Combine customer referrals with detailed research to find the right fit for your banking needs.

Difficulty: Easy

Instructions

1. Speak directly to a customer service representative. There are many details absent or not clarified by fine print and it is best to get direct answers.
   
   Many banks offer the option of service reps on location, by phone, or online by live chat.

2. Tell them what you want, then let them find the right account for you.
   
   You are likely/unlikely to...
   1. Maintain a specified minimum balance.
   2. Need overdraft protection
   3. Visit a teller
   4. Utilize online banking
   5. Direct deposit at least one paycheck each month
   6. Deposit a large or very large sum of money each month
   7. Need international checking/ATM/debit payment options

3. Ask them to spell-out all of the fees.
   
   1. Point of sale fees - when paying by check, or by debit (pin number), or by credit (signature).
   2. ATM fees at their ATMs - you should be able to find banks that do not charge their customers for withdrawals at their ATMs. A great find is a bank or credit union that refunds ATM charges when a customer uses another vendor's ATM.
   3. Teller fees
   4. Online payment fees - most banks do not charge users for paying bills or making purchases online.
   5. Overdraft fees
   6. Overdraft protection fees
   7. Annual fees for having an account
   8. Minimum balance fees

4. Ask about perks and get the timing down.
   
   1. When/How often do they offer cash-back for opening a new account?
   2. Does a debit card with that bank offer any discounts? Ask for a detailed list. (eg. Bank of America offers checking account holders a free pass to certain museums)
   3. Overdraft forgiveness
   4. Interest-earning checking accounts
   5. Discounts or freebies on other services within their bank like investment accounts, tax services, or financial consultations

5. Take notes, weigh options from bank to bank, and make a selection.
   
   The quality of customer service is hard to judge until you become a customer. Even if your bank meets all your other needs, start the search over if you feel like your bank is not taking care of you.

Tips & Warnings

• Regional banks limit your ATM options if you are a traveler, but often their fees are far less or their customer service is far better.
• College students still reliant on parents for emergency cash should find banks with locations near school and their parents.
• Every bank should be FDIC insured. (Amounts insured are set and regulated by the Federal Government). If FDIC insurance is their only selling point, proceed with extreme caution. If you don't see the FDIC logo, walk away.