A bank account is the simplest and often the most important tool in your financial arsenal. It may seem as if there’s not much difference between bank accounts, but in fact, you should choose the account carefully and based on how you plan to use it.
It can mean a lot in the long run and especially if the account has features to help you along in case something goes wrong with your deposit or finance in general.
Here, we’ll try to help you figure out what features a good bank account should have.
Insurance
The first thing to look for in a bank account is insurance. That means that the funds you have on your account are safe in case something happens with the bank, including if the bank itself has to go bankrupt at some point.
The insurance usually covers only a certain amount and the amount is usually regulated by some sort of government entity. It’s best therefore not to go over that amount when depositing funds to your account. There are other ways to maintain your savings or investments.
Fees
There are numerous fees you’ll need to pay when using a bank account. These are mostly related to transferring funds, but sometimes they are also about using different currencies or using a service of a rival bank. Fees tend to add up. Make sure you’re familiar with these fees beforehand and you know what you’ll end up paying.
The bank is also obligated to let you know if something changes about their fee policy. That’s a good time to review and reconsider a bank in general and possibly move your account elsewhere if there’s a need for it.
Customer Service
Chances are something will go wrong with your account at some point. When this happens you should have access to a good customer support service. Inquire about it before opening an account. Good customer service should be easily available at all times, and via numerous different channels of communication.
It needs to be staffed by experts and since having to use customer services in the first place is a stressful thing, it should also be calm and helpful. It’s also useful to figure out if this service is a part of having a bank account or is it paid separately as is often the case.
Online Banking
Online banking is a key feature for most clients. You want to be able to do most of your banking without having to actually go to a bank and you want your funds to be safe while doing it. Find out what kind of online banking services your account offers.
Chances are that not all features would be available online and it’s important to be sure which one actually requires your physical presence at the bank. It’s also essential that you’re confident about the safety and security of the whole process.
ATM Network
Before opening a bank account, you should inquire about the ATM network the bank provides. The goal is to have as many ATMs spread across the area you plan to use the most. It can also be useful to ask about the fees for using the ATMs as well as the limits on the amounts you’re allowed to withdraw.
For the most part, the bank shouldn’t charge you for using an ATM, but there are sometimes some insurance fees involved that cover the use of ATMs as well. Most banks also offer you an app with which to find the nearest ATM.
Interest
Checking accounts aren’t made to store and save funds. There are specialized accounts made for that purpose alone. However, most banks reward having some sort of savings on your checking account at the end of the month. On average the interest for keeping your account in the green is about 0.04 %.
It doesn’t mean much, but it’s good to know that you have that option and that there’s an incentive for you to leave at least a small sum on your account at the end of your monthly deposits. There are also fees to pay if the account dips into the red.
Monthly Maintenance Fees
Most banks charge a monthly fee for using the account. Make sure you know upfront what the amount is and how it’s paid. The bank is also required to let you know if this fee changes and to give you plenty of time to switch banks in case you’re not satisfied with the change.
For the most part, the fee will be deducted from your balance on the last day of the month. Don’t forget to leave the amount on your balance at the end of the month and you’ll be fine when it comes to fees. Shop around before making a call on your account, to make sure you’re not being overcharged.
How Easy It Is to Close the Account?
In the end, it’s important to follow up on how easy it is to close a bank account once you’ve opened it. Some banks won’t allow you to do that at all for a certain amount of time regardless of your plans while others have a fee that you’ll need to cover in order to close it.
These fees can be a fixed amount or they can be related to how your account is used and how much funds you have on it. It may not be a feature you use at all, but it’s good to be prepared for it in advance.