Finding a bank can be difficult. Choosing the right financial institution for you is often a research-heavy process, as you want a long-term partner that will be able to meet all your personal finance needs. Nobody wants to be switching banks constantly.
There are a number of factors to take into account if you're trying to choose a bank or credit union to work with. These points of consideration range from the type of bank accounts offered and ATM fees to customer service and relationship banking.
However, the world of financial services has changed, particularly amid the shift to online and mobile banking. The embrace of digital banking tools adds a whole new set of criteria to the question of "What to look for in a bank?" That's why you'll need to weigh all the factors important to you, whether that means local branch availability or digitally enabled banking self-service tools, or some hybrid service in between.
To help make the decision-making process easier on you, let's answer some of the most important questions related to "What to look for in a bank?" and how you can find the best financial provider for your needs.
What types of banking accounts are offered?
This is as good a place to start as any. The type of account you are looking for will guide your research at a high level. Some of the bank accounts you may be most interested in include:
- Checking account - this is a primary bank account that many use to manage their money on a daily basis, whether to pay bills or receive paychecks.
- Savings account - need a place to stash your cash? A savings account is an interest-bearing account that will grow your savings. Often, the more you have, the higher your interest rate — but be sure to check.
- Money market account - similar to a savings account, a money market account is commonly used to automate short-term investments that put your funds to work by earning at a competitive interest rate.
- Brokerage account - investors use these accounts to manage their investment portfolios, whether that means trading stocks or buying and selling bonds.
- Retirement savings account - individual retirement accounts (IRAs) allow customers a greater degree of control over their retirement savings compared to employer-sponsored accounts.
- College savings account - you might be interested in opening a Education Savings account or 529 savings plans to save for your child's college education.
This is not an exhaustive list of bank accounts, but a collection of some of the most popular types you likely want to look for in a bank.
How easy is it to open an account?
If you know what type of account you want, a related question is "how easy is it to open?"
Some banks provide robust systems for setting up accounts fully online, letting you create an account and deposit funds through an online portal and a mobile app. In some cases, these tools can be complex to work with. Other banks favor in-person account setup, but then allow you to manage and interact with your account using digital tools.
Both options are viable, but it is important to assess what kind of identification you need to create an account and be ready to go through whatever process the bank requires. When it comes to actually choosing a bank, you will need to consider your availability and willingness to adapt to what the bank demands.
What else do you get with an account?
Banks will often provide varied services to support their checking accounts. These can include things like overdraft protection, credit and debit cards, online access to account management capabilities, mobile check deposit and similar solutions. It is important to think about what you really need and make your decision accordingly.
For example, if you expect your checking account to remain fairly stable and think it will be easy to maintain a high minimum balance, you may want to find a bank that offers interest-bearing checking accounts. If you anticipate regularly withdrawing most of what is in your checking account as you go through monthly spending patterns, then you would be better off at a bank that emphasizes strong overdraft protection and provides digital visibility (like through web banking) into your account from a variety of device types.
What other products and services are available?
Bank accounts are only the starting point for evaluating a potential financial partner. Your personal finance needs will likely change or grow over time, so you'll want to be sure that the bank you do end up choosing will have all the required products and services — both in the present and the future.
Some of these products and services you should be looking for include:
- Credit cards.
- Mortgages and refinances.
- ersonal loans.
- Student loans.
- Home equity loans / home equity lines of credit.
- Wealth management.
- Insurance (home, life, auto, renters, umbrella, etc.).
Plus, many banks offer basic advice and account support to all customers. This may come in the form of guidance that helps you identify the best type of checking account or CD to help you achieve your financial goals. Such support may also be offered through financial literacy workshops on handling common financial challenges or a resource library with helpful content for first-time homebuyers, savers and those trying to pay down debt quickly. Banks that blend robust digital services with a relational approach can be invaluable, and you will want to get an idea of what a bank or credit union offers.
Does the bank have a local presence?
Many customers prefer community banks, or at least a larger bank that has a local presence. It's important to at least have a branch within reasonable distance of your home. You may need a roll of quarters or an in-depth conversation with a banker about mortgage options.
What online and mobile banking tools are available?
Online and mobile banking services are in high demand, and are quickly becoming the standard. Before you choose a bank, be sure to ask about the app it offers and related features, which may include:
- Spending analysis tools.
- Remote check deposit.
- Online account openings.
- Automated investing advice.
- Robust transaction reports and data.
If you're looking for something in-between a physical branch and online help, consider choosing a bank that offers a hybrid service — like Banker Connect™ from Comerica Bank. Our customers can use our interactive machines to talk with a live teller via video and can make deposits or transfers, among other actions.
What fees will be charged?
Fees are a major consideration when choosing a bank. You'll want to be aware of all the fees you might be charged to get the full picture of which bank will be best for you. Charges to consider here include:
- ATM fees.
- Overdraft fees.
- Monthly maintenance fees.
- New check fees.
Transparency is key here, as you don't want to run into any hidden fees that could damage your finances and impact your long-term relationship with the bank. For example, if you are interested in a checking account from Comerica Bank, you can read all about what fees are and aren't applicable.
Finding your bank
Need some help navigating this process? Contact Comerica Bank today. We would be happy to walk you through the various choices that impact your banking decision, as well as show you how we can meet your personal finance needs.
