Back in the 1950s, banks often gave away toasters to new depositors, and that made
choosing a bank simpler. You went to the one that gave away the best toaster.
Today banks rarely give away toasters, and choosing a bank is a little more
complicated. For starters, you should shop around to find out which banks offer the
best services and the lowest fees. Some banks charge a monthly fee if your account
falls below a certain level, and that fee can be higher than the interest your
account earns. Other banks may charge fees for many types of transactions. You don’t
want that.
In certain states, such as Massachusetts, the law prohibits banks from charging fees
on savings accounts held by people under the age of 18 or over the age of 65. Find
out if your state has such a law.
Other things you might want to consider:
1. Does your bank pay depositors a competitive interest rate?
2. Is the bank in a convenient location and are its business hours convenient for
you?
3. Is your deposit insured by the FDIC (Federal Deposit Insurance Corporation)?
4. Is the bank a good corporate citizen? Does it invest in your neighborhood?
5. And last, but certainly not least, does your bank provide courteous and
efficient service? Before you open an account, ask a few people if they are happy
with their bank. And do some comparison shopping because all banks are not the same.
