How not to pick a bank
Picking a bank is kind of like buying a car. In the same way that an impressive stereo system shouldn鈥檛 be a vehicle鈥檚 main selling point, a bank鈥檚 sign-up bonus shouldn鈥檛 have you rushing to give it聽your money.
A better strategy? Getting a well-rounded impression of whichever bank or credit union has caught your eye. That means making sure it offers good聽checking and savings accounts, low fees and tools you鈥檒l actually use.
As enticing as the following deals and features may seem, none should be the primary聽reason you choose a bank.
Don鈥檛 chase special deals
Banks are always hungry for more customers, and some try harder聽than others to sate their聽appetite. Popular strategies include offering a high introductory savings rate 鈥� 3%! 鈥斅爋r聽a one-time cash bonus 鈥� $200! 鈥� when you open a checking account.
It鈥檚 hard not to be wooed by short-term perks. But that great rate rarely lasts longer than a few months, meaning you don鈥檛 see much from it, and ultimately these one-offs shouldn鈥檛 carry as much weight as low fees, good聽rates and convenient聽services over the long run.
(That said, if you鈥檙e deciding between two banks聽that both look good overall, there鈥檚 nothing wrong with joining聽.)
Don鈥檛 be entranced by a flashy website
From flicking birds to catching Pokemon, we use our smartphones for all sorts of fun and games. But a growing number of consumers are actually聽using them for more productive purposes, like paying bills and monitoring their accounts. Knowing this,聽banks and credit unions are investing heavily in their mobile and online platforms.
While that鈥檚 a good thing, keep in mind that a sharp-looking website goes only so far. Other tech features matter much more. Is there聽an online chat service? Will you be able to deposit checks using your smartphone? Can you schedule automatic transfers between your savings and checking accounts?
Don鈥檛 be impressed by features you won鈥檛 use
Big banks 鈥斅爐he ones that pay millions to slap聽their names on stadiums 鈥斅爃ave locations across the country. That鈥檚 often one of their biggest selling points. But maintaining as many as 5,000 branches is also a burden, and makes it difficult to offer good聽savings rates.
If you can鈥檛 remember the last time you stepped foot inside a bank, don鈥檛 let those branch numbers influence your decision. Although many customers still prefer in-person help, online聽tools聽have聽made it easier than ever to bank from your couch.
Focus on services that you know you鈥檒l take advantage of. If, for example,聽you overdraft frequently, look for banks and credit unions that have lenient overdraft policies and low fees.
Don鈥檛 overvalue sponsorships or other partnerships
College students, take note: Your school may have an official banking partner, but that聽than those of other financial institutions.
Elsewhere, some banks team up with professional sports leagues to offer deals like custom debit cards with聽your favorite team鈥檚 logo. But, really, these kinds of perks don鈥檛 enrich your overall banking experience, so it鈥檚 best not to let them drive聽your decision.
We鈥檝e all been there: going to the store to buy聽milk and coming聽home with eight other things we didn鈥檛 really need. Looking for a new bank tests consumers鈥� discipline in many of the same ways.
That鈥檚 what makes it so important to聽: low fees, strong rates and reliable customer service. Do that, and you probably won鈥檛 be in the market聽for a new bank any time soon.
Tony Armstrong is a staff writer at NerdWallet, a personal finance website. Email:tony@nerdwallet.com. Twitter:聽.
The article聽聽originally appeared on聽.
