Did you know that most banks are profit-seeking corporations that make money by charging you money for loans? Dating back to 1914, the Federal Reserve System was set up to help stabilize the U.S. banking system instead of it being one large bank. This stops the Federal Reserve from being under the power of the federal government or Wall Street.
Due to this, you have options when it comes to local banking. But how can you choose the best local bank since your options are endless?
While it might seem overwhelming, there’s hope. Read this guide on how to choose the right bank for your needs today.
Exploring Banking Establishments
You have the choice between Neobanks, Online banks, Credit Unions, community, or national banks. For the widest range of options, choose a national bank. They’re commonly physical banks instead of online options.
Instead of a traditional bank, you have neobanks which are financial technology companies. They’re a newer option since they offer mobile accounts. Since they don’t have a physical location, they might not offer cashier’s checks or wire transfers.
The highest rates tend to go toward CDs and savings accounts. Many online banks have a great mobile app experience as well. Like neobanks, they might not offer you cashier’s checks or wire transfers though.
As you pick out a bank, think about your must haves and nice to haves. They all have their pros and cons.
National banks aren’t the best for CD and savings rates. Instead, they’re great for ATM networks and specialty banking services.
While credit unions don’t have special perks, they tend to have specialty bank services. Since they’re local, they often have community-focused support.
The Size of the Bank Matters
Whether you’re looking to open a personal or llc bank account, be mindful of the size of the bank. Decide whether you’d rather work with a small or large bank because bigger doesn’t always mean better.
Smaller banks might be more willing to work with your individual needs or the local market conditions. They might look at your overall profile instead of just you as a credit score.
Whereas, a larger bank might have more options when it comes to resources and offerings. At the same time, you might wind up feeling like another number. The perks are that you’ll more than likely have options such as lines of credit or other credit options.
Consider the Location
Think about the bank’s location from your office or home as far as convenience goes. If you’re going to be making multiple trips, it might be important to find a location close by.
Think about whether you’ll be using the ATM at the bank without fees. If you’ll be heading to the bank multiple times a week, choose a location close by.
Consider the Services That You’ll Need
Identify whether you’ll be using the bank for personal, business, or for both reasons. As a small business owner, you’ll want to find out the facts behind their business banking products. You’ll also want to find out about different fees or other requirements.
As a business, you might need a banking establishment for:
- Employee checking accounts
- Checking accounts
- Deposit-only cards
- Online business banking
- Checkbook and checks
- Credit cards
- Debit cards
- Savings accounts
Other things to consider include the:
- Ease of integration
- Bonus offers
- Monthly, weekly, and daily transaction limits
- ATM access
- Branch banking
- Service fees
- Interest rates for deposit accounts
- Account features and services
Account Services
Along with the features above, the financial institution might have safe deposit boxes, check-writing services, wire transfer services, and debit card access. There might be other features or services that you might be interested in as well, so it’s important to ask.
ATM Access
If you need help with managing your bank account, it might be nice to have a physical business checking account. You might also need to deposit checks or cash.
If you’re able to visit an ATM to withdraw or manage your account, that’s a plus as well. See the bank’s ATM network before you choose them. ATM surcharges could always wind up being expensive.
See if the bank will reimburse you for out-of-network ATM fees. Also, see if there are fees for business checking accounts.
How To Choose the Best Local Bank
First, the best bank will have little to no service fees. Since we’re in the digital age, find one that has mobile banking and a user-friendly platform. Think about the linked deposit accounts as well.
Do I Really Need a Business Checking Account?
While you could technically use your personal account for business purposes, it’s not the best idea. When you go to file, keeping your business and personal expenses separate is important.
This will also give you an added liability protection. It’s also a way to keep your customers’ information safer.
When you have a business account, you’re more likely to qualify for lines of credit and loans. You might also receive a discount on fees or interest rates for loans if you’re an existing customer.
Understanding How To Choose the Best Local Bank
After exploring this complete guide on how to choose the best local bank, you should have a better idea of what to expect. Take your time deciding what will be the best option for you.
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