Read this before deciding who to contact.
- You should research your options carefully when selecting your bank.
- Financial expert Dave Ramsey has some tips on what to look for.
- Ramsey suggests that there are two criteria to focus on, including the type of bank you want.
When you open a bank account, you make an important decision. You will likely interact with this account dozens of times a month, as this will most likely be where your paycheck is deposited and where you receive money and pay your bills from. That’s why it’s so important to make sure you choose the right edge.
This is easier said than done, however, as there are tons of different financial institutions that each offer their own bank accounts with their own pros and cons. To help you make a decision easier, financial expert Dave Ramsey invites you to consider focusing specifically on two key questions.
Here’s what Dave Ramsey says are the most important things to think about when choosing a bank
In the guide to choosing a bank on the Ramsey Solutions blog, Ramsey lists many different things that can differentiate one bank account from another, including:
- The different types of accounts offered, such as checking, savings and money market accounts
- The interest rate you receive on money you deposit in the bank
- Fees charged to you by the bank, including minimum balance fees
- How many ATMs and branches there are so you can easily access your money without having to pay a fee to use another bank’s ATM
- How easy it is to work with the bank
- Client service
- bank security
However, focusing on all of these things can be overwhelming. That’s why it also offers some tips to simplify your decision. “The two things you really need to hone in on when choosing a bank are 1) the type of bank you want and 2) the features that matter most to you,” said the Ramsey Solutions blog states.
How to focus on these two factors
Ramsey is correct that the type of bank matters, as it can narrow down which financial institutions you are willing to work with. You have three main choices for this type of bank, including a traditional bank, an online bank, or a credit union.
“With a traditional bank, you can choose a large national bank or a smaller community option,” Ramsey said. “Honestly, there is no advantage to the huge branded bank unless you like being treated like a nameless, faceless account number. On the other hand, a small community bank will often offer you great customer service and you’ll get to know the people who take care of your money.”
Online banks, on the other hand, are a newer alternative which, according to Ramsey, comes with little human interaction – although online banks tend to offer lower fees as they have lower fees. generals.
Finally, credit unions are member-owned non-profit organizations, so they tend to focus more on customer service and offer other benefits, such as paying a premium. higher interest on your money. But, as Ramsey points out, you need to be a member to join one and there may be fewer ATMs to use at no cost.
Once you have decided on the type of bank you want, you can decide which other key elements are most important in Ramsey’s initial list. For example, you might think that reducing fees is your top priority so you don’t waste money. Or, you may care more about the interest rate offered to you or free access to ATMs.
After deciding which of these criteria will affect your happiness with your financial institution the most, you can choose the perfect online bank, traditional bank, or credit union by comparing that feature first. That way, you should end up with a bank that you’re happy with in the long run.
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