How to Choose The Best Bank Product
- When choosing a bank product, you must ask yourself key questions before making your decision.
- Ask yourself the tough questions about yourself and your money and take some time to reflect on your responses to those questions.
- After, you will have clarity on how a bank will increase or decrease your specific needs.
When choosing a bank product (i.e., debit cards, credit cards, opening bank accounts), you must ask yourself key questions before making your decision. Most people choose their financial institution based on convenience; it’s close to your work, or the process of opening an account is hassle-free. Rather than finding out in the long run that you’ve chosen the wrong option, ask yourself the tough questions about yourself and your money and take some time to reflect on your responses to those questions. After, you will have clarity on how a bank will increase or decrease your specific needs.
Remember, you are the boss of your money. You tell your money where to go and where not to go. You are a customer who has the right to accept or decline a bank product offer. Stand firmly in your decision and make the best ones for your financial situation. Below are a few questions you can start with to help you understand your banking needs.
Does this bank product fit my needs?
Take time to write down your needs. Maybe you are a person who would rather bank online rather than in-person. If that is the case, then you should find a bank that can fit all of your online needs, such as 24/7 customer service and access to a mobile app. If you are saving for a major goal that is a year or more away, then maybe you want a product that has a higher interest rate so that your money can grow more.
What are the benefits of using this product?
When you are looking for a new product, it is ok to be selfish and consider what you will get from using this product. Banks will offer benefits to attract you to use their product over another bank. Use this to your advantage and find the product that best fits your needs and gives you good perks.
Some perks you can consider are:
- No fees on on your account (i.e. no monthly maintenance fee)
- Low interest rates for credit cards or loans
- High interest savings accounts
- Cash for opening a new account
Will this product cost me too much money?
Some banks can put their customers into debt very quickly. Many banks have a fee for transferring funds between your accounts, a fee for deposits and withdrawals, monthly account fees (also known as monthly maintenance fees) and overdraft fees. Ask a few different banks about their fees BEFORE you open an account.