When we are talking about the entire topic of investment, there’s one simple thing underpinning it. You can learn how to trade, how to find the right broker, and how to be savvier with your finances, but choosing the right bank is of the utmost importance.
It’s something that we don’t always give consideration to, especially when we are looking at the bigger picture. But if you head to the wrong bank, you are going to lose out. You can lose fees, interest, and it can be incredibly inconvenient. So what do you need to consider when choosing a bank?
The Need for a Physical Branch
For business owners, it may not be necessary to have a physical location, but if you are dealing in cash on a regular basis you need a bank where you can deposit cash in a convenient branch.
There are numerous banks that offer physical locations. One like Provident State Bank can provide a plethora of services under one roof with a variety of features and lower fees than most other banks.
However, if you rarely use cash, an online bank is a good option. But it’s always a good idea to have a bank in physical proximity to you just in case. Everybody is more than aware of the rigmarole associated with contacting a bank online or over the phone.
If you are trying to minimize frustration, it can be easier speaking to a real human being, in which case a physical branch is of the utmost importance.
The Importance of Business Accounts
Small business owners or those starting out with a side hustle will need to have a business account. Most banks offer business accounts, but do they have a dedicated business banking team? It’s most important to have a team that understands your personal situation.
A bank that has expertise in a variety of business transactions is essential, especially when it comes to investments, taxes, and balancing the books. Many banks use high-quality accounting software such as QuickBooks to help people with their business Ventures.
There are some great options out there that can help you to integrate your business services and deposit your transactions safely. It’s also important to get to grips with FDIC insurance, which can protect you when depositing money.
How Regularly Do You Use ATMs?
Whether you are someone who uses cash a lot or it’s few and far between, an ATM could be essential or not worth your time. Understandably, so many people don’t use physical transactions, especially when it comes to purchasing items.
But finding the right bank that could offer a checking account with unlimited ATM fee rebates can make a big difference. Some banks will charge fees for using other ATMs.
So if you need cash often, you’ve got to make sure that you can use these ATMs for free in the right locations that will suit your needs.
The Importance of Free Transfers to Other Accounts
If you are diversifying your investments and have a number of bank accounts in a number of different locations, it can be a big lifesaver to go into your online banking app to transfer funds when necessary.
If this is important to you, you’ve got to ensure the bank offers free transfers to accounts and doesn’t charge you anything.
After all, it’s important to not overspend, especially when moving money between accounts. This also includes transferring to people at other banking institutions.
Some banks will let you transfer directly via an online transfer system, but bear in mind if you are using apps such as PayPal, as it’s likely they will charge you for the luxury.
If you are working hard to diversify your investments, you may find yourself in the red. While it’s important to remember that, on the topic of investments, you should never invest more than you can afford to lose, if you do get into the habit of overdrawing a bank account, you’ve got to choose an organization that doesn’t charge extortionate fees for overdrafts.
If you manage your accounts well, you will seldom need to go into the red, but if you accidentally hit your overdraft because you pull out the wrong card, sometimes a quick call to the bank can waive the fee.
This is another thing to consider because if you have a long-standing relationship with the right bank, they will waive this fee for you as an act of solidarity. But if you are someone that goes beyond zero, you should not be stuck paying hundreds of dollars every year for this.
The Best Fees and Interest Rates
Banks will charge fees for a number of different activities including:
- Monthly account maintenance.
- Returned deposits.
- Minimum balance.
- ATM fees for non-bank ATMs.
- Paper bank statements.
If you have a good working relationship with a bank, there will be times when fees could potentially be waived, but you’ve got to consider just how many of these services you envisage yourself using. Investments like real estate may require you to put more money into upgrading the property before you sell it.
Therefore, if you are regularly going between bank accounts, it pays to have the least amount of fees and interest rates possible. If you go for bigger banks like Bank of America, they are predominantly known for higher fees, and this is something we should all try to bypass.
There is no perfect bank for anybody, however, there is one that’s the ideal option for you. It’s important to find the right institution to meet your needs because you could use online banking with some low fees and great interest rates, but you may not be able to deposit cash and might have to pay ATM fees.
There’s an abundance of criteria that is so important when it comes to investing. Understanding what is important to you is vital before you make the big switch.
From personal banking to business banking, when you pick the right one for your needs, there will be a lot less hassle in the long run, meaning you can focus on your investment journey easily.