People have progressed in so many ways since the beginning of recorded history. Some of those progressions involve money, trade, and business. Everyone has to get by these days, and doing so can now come in a lot of ways. Before, it used to be very straightforward: I offer you something, and you give me something for it. Nowadays, there is a multitude of ways to get a hold of something, and this has made everything more complicated yet convenient at the same time.
Do you want that house? What used to be a straightforward bag of gold coins for a lease can now be mortgages, down payments, and credit scores. Although this might seem like a headache and a hassle (as sometimes it is), you could actually find your way around some of these and get yourself a decent money saving.
Of course, opening a bank account comes with many questions. Is there a checking account bonus or an interest rate that benefits you in the long run? Can your credit score be better off with this bank, or could you liquidate your assets better with that? All of these things may be overwhelming for you, so here are some essential things to keep in mind when you’re opening a bank account. This is written with the assumption that it’s your first time to open a bank account, but somebody who already has one could still get some information and tips out of this paper.
This is also written with considerations in mind that you’ll be opening a savings type of bank account, which doesn’t necessarily exclude other things to keep in mind when opening other types of bank accounts. Without further ado, let’s see some of the things that you need to consider before opening a bank account.
Interest rates – Perhaps one of the most important things to consider when opening a bank account is the bank’s interest rates. Whenever you’re putting in money to be used at a later date, by the time you’re withdrawing the amount, you’ll have a smaller purchasing power with it. Basically, inflation and other economic factors cause your money to be less valuable, albeit in a very small percentage. Interest rates may help avert some of these problems. The higher the interest rates of a bank are, the less money you’re losing out whenever you’re saving on that bank. It is, therefore, imperative to choose a bank that has a high-interest rate, preferably something closer to the inflation rate of your state or country.
Networks and branches – It should be kept in mind that a bank is only as good as you could have access to it. Meaning the more branches a bank has, the better it is for you. The purpose of putting money in the bank is that you could have something to rely on whenever you need it at a later date. Opening a bank account with a company that has very little coverage might leave you stuck and inconvenienced when needing to withdraw. Try to take notes of the branches, ATM availability, and even the compatibility of the bank with most of your regular expenditures. This is so that you can avoid transaction fees of transferring money from one bank to another, which will just cost you needless money.
Fees – There are a lot of fees that come with opening a bank. Transaction fees, withdrawal fees from other ATMs, transfer fees to other banks, and other service fees that you might not be aware of. Always keep in mind that what you save isn’t exactly what you will get in the future, whether that’d be higher or lower. You might be blindsided by the hidden fees and other service charges, which will only cost you money.
In conclusion, it is a good practice to always balance the three. Before opening a bank account, find the right company with the perfect balance of high-interest rates, good national coverage, and low fees. That way, you could get the most out of your saved money.