Choosing the right bank is like choosing the perfect pair of jeans, they have to be the right size. The right financial institution can simplify your financial management and help you save money. Each bank offers different account types, features, offers, interest rates, and services, so it helps to know what matters most to you financially.
BET..com has suggested a list of banks that suit almost any lifestyle. Check out the scenarios below and see which bank is right for you.
First, let’s look at the four most common types of bank accounts available to you:
A Current account offers the greatest flexibility and easier access to funds for day-to-day expenses. You can open a checking account at a physical bank, credit union, or online bank.
In the beginning, checking accounts allowed their owners to write checks on physical paper, but nowadays many people have chosen to bypass paper checks. Checking accounts are used to deposit money to pay bills and other recurring expenses. Using a debit card, ACH transfer, or wire transfer are three additional methods that can be used in conjunction with a checking account to move, spend, or transfer money.
A Savings account is an account for holding money that you put in the bank and don’t plan to spend right away. Savings accounts help you save money for specific goals and purposes, or save extra money for a rainy day or an emergency.
It offers access to your money, but it’s not as convenient as a checking account. A savings account limits the number of times you can access your finds per month. The Federal Reserve Board used to limit you to six withdrawals per month, but has since removed that requirement.
A Money Market Deposit Account is a financial product that combines the characteristics of a current account and a savings account. It’s often offered by many banks and credit unions, and it lets you store your funds while earning interest.
These accounts have variable interest rates, meaning they fluctuate over time and change periodically. They tend to offer
A Certificate of Deposit (CD) is a type of savings account that limits your access to the money you invest, but offers higher interest rates than regular savings accounts. Once you have invested funds in a CD, you agree to keep them in the account for a specified period of time. The deposit increases in value over time, but may be subject to charges if withdrawn before the agreed term.
CDs are generally considered low risk investments because they are simple to understand and FDIC insured.
Now think about the type of banking experience you want:
I want a physical bank or I want a digital/mobile bank
The good thing is that many physical banks also offer banking services through mobile apps. Bank of America is an example of a physical bank. With over 4,100 locations, it’s generally easy to find and use its services frequently. Bank of America also provides a reliable and secure banking app. Customers can use the mobile app on the go or visit a location if they need specialist assistance.
A digital bank does not have a physical location but is available online and/or on an app. It is accessible to most people with a phone or laptop. Digital banking allows you to perform most essential tasks such as checking your account balance and depositing photo checks. Some digital banks don’t offer savings accounts, so be sure to do your research.
An example of a digital bank is Axos Bank, ranked best overall checking account by Forbes Advisor.
Black-owned banks are few but powerful. They were created out of necessity when black people were not allowed in white banking institutions. They provide greater access to banking services for black people and support black communities economically. Keep in mind that if you want to bet on Black, you may be restricted to a certain state, city or community due to the limited number of slots. Some black banks also offer mobile and online services.
Here are some black banks to consider:
The type of experience you get from a bank will vary. Some people need international banking services, while others need banking services tailored to their small businesses. Think about your ideal banking experience and use that as a guide to choosing the right bank for you.
Finally, think about your essential features when banking. A bank’s features are the added benefits you receive and they can make or break your banking experience and your wallet. Some features to consider include:
- Limited to no fees
- Competitive interest rates
- No minimum balance requirement
- Great customer service
- FDIC insured
- Loyalty offers
- Convenient branches
- Loans and other financial products
Disclaimer: This is not financial advice and the author is not a financial professional.