Before you open a savings account, you must choose first which bank you are going to. There are many factors you should consider when selecting a bank where your savings account is located.
Here are some tips you may consider before going to a bank and applying a savings account in them. I make this list as simple as possible, so it is easy to be understood.
1. Is it a government-insured?
When choosing a bank, you should know first if you had the protection when the bank went to bankruptcy. If a bank is insured by the government, you don’t need to worry because the money you have in your bank account is guaranteed that will be backed to you.
A bank should be a member of the Depositor Insurance Corporation of the country where your bank is located. Take note that there’s a certain limit of the amount of money this insurance covered. Do research first, which bank has the insurance for its depositors.
2. Reputation – What other people say about it
Is the bank reputable and trusted by people and their customers? Is the management and employees of the bank competent and customer-oriented? These are some questions you should ask before selecting the bank you are considering.
It is not hard to know the answer to these questions, simply ask your friends or relatives about their experiences about the bank. You may also research on the Internet; there are lots of information you can get from it. Just be patient and resourceful when searching.
3. Interest rate
One of the most important information you should know is the interest rate of the bank. You can see it on their website where all rates and fees of the bank are listed.
Choose a bank that gives the highest interest. Be careful sometimes because many banks giving high interest on deposits are not members of insurance corporations. When they became bankrupt, your money is also gone with them since it is not insured by the government.
Is there a branch near your place? Do they have ATMs around your location where you can withdraw money in case of an emergency?
You should choose a bank that is accessible wherever you are. As much as possible, the bank should have online banking, mobile banking, and telephone banking aside from the plenty ATMs it has.
5. Other Products and services
Some banks have a wide range of products giving you access to investment vehicles like stock investing and mutual funds, credit cards, mortgage, loans, and a lot more. You must also consider this, particularly when you are planning to invest your money other than a savings account.
Choosing a good bank is not easy to do, especially when you don’t have any idea what a good bank should possess. You may consider the tips listed here in order to have a guide when selecting a bank for your savings account.