First, let’s consider the obvious: many banks are out there. But you can go through all of them and apply for new accounts whenever you need to deposit. Instead, use your current bank as a starting point and shop for better options. Here are some tips on how to do just that:
Shop around
Shop around for a checking account with the best combination of fees, minimum balances, and high-interest checking account, which is easy to operate. Compare all the features offered with your current financial institution and find out if there are any additional perks like free check writing or bill pay.
Also, determine if you want to stick with an old-fashioned brick-and-mortar bank or go with a modern online option. You’ll find plenty of banks that offer either type, so it’s up to you which one better suits your lifestyle.
Consider your own needs
Before you can decide which checking account is right for you, you should know a few things about yourself: your spending habits and your financial situation.
- What do you want from a checking account?
- How much money are you typically spending per month?
- Do you prefer to write checks or pay with cash or credit cards?
Once you know what kind of checking account would work best for your needs, it’s time to start shopping around for the best deal.
Look for value
- Look for value. The best checking accounts offer you a lot of value, and you must find one that can help you save money.
- Free ATMs are the norm these days, but some banks go above and beyond with their offerings. Some banks will even reimburse you for balance inquiries from other banks’ ATMs!
- If your phone is your primary computer, check out mobile apps from your bank to see if they’re worth using. Many allow depositing checks via smartphone camera or even make paying bills easier than ever before with just a few taps of the screen!
Work with your current bank
You may not have to switch banks. Instead, try asking your current bank about getting a better deal on a checking account. If your relationship with that bank is strong, they may be willing to negotiate with you and give you the terms that will make it worth staying put.
This approach has its risks, though—for one thing, if the bank doesn’t want to negotiate with you at all or won’t be able to meet your needs on rates and fees (or anything else), then there’s no point in continuing the conversation—but it does work for some people.
Don’t go back to a bank that has charged you overdraft fees
You may have a bank you like and trust, but if they charge overdraft fees, that isn’t the bank for you. Not only are those fees expensive (averaging $35 per occurrence), but they can also cost an average of $125 per year when they hit enough times. They’re unnecessary and often avoidable by choosing another account or doing some research before opening one in the first place.
Hopefully, this list of tips has helped you find the perfect checking account. If not, don’t worry! There are many more options out there for you to explore. Take your time, do some research and talk to friends about their own experiences with banking. You always need to find out what kind of information you might get that will help guide your process! Good luck!