How to pick the right bank for you

Jet, Oct 11, 2004

The days of stuffing money between mattresses for savings are (pretty much) over.

Today you are offered many choices when it comes to saving your money in a bank: free checking accounts, no ATM fees, online bill payment, e-mail alerts, interest bearing checking and savings accounts, etc. All of these choices can confuse you in deciding the bank that's right for you. Here are a few pointers from the Federal Deposit Insurance Corporation (FDIC), to help make a sound decision.

Know Thyself. Before you shop around for a bank that's right for you, it's important to know what type of financial creature you are. If you're just starting out, then maybe all you'll need is a checking account and an ATM or credit card.

If you have more experience with banking, chances are you're pretty satisfied with your bank. But as with any business transaction, there's always something you can do differently or better. For example, your bank could arrange for the direct deposit of your pay and benefit checks and other regular income.

Do you wait until the last minute to rush out to cash your paycheck and pay bills? Are you easily exasperated while waiting in line to do bills? If your bank is technologically savvy, then you can have your bank automatically make some of your regular payments, such as your mortgage and utility bills; talk to a customer service representative at your bank to make sure you're signed up for the right programs to meet your needs.

Dollars And Sense. There's more to banking than just give and take (you give the bank your money and it takes your cash)-attractive interest rates, low fees and solid service should be part of the experience. Keep an eye open for fees for various types of transactions.

Are you charged for telephone inquiries concerning your account? Does the bank charge you for making deposits? Are there enough ATMs from your bank around town so that you won't get charged for using an ATM by another bank?

Are your funds are fully protected? The FDIC protects bank and savings association depositors up to at least $100,000 at each institution. Depending on how your accounts are structured, however, you can be insured for more than that.

Don't Be Afraid To Complain. Your bank's managers probably would prefer you bring a problem to their attention so that they're given a chance to fix it rather than you taking your business elsewhere or telling all your friends about "that lousy bank."