How good is your Bank?
Today banking is not like it was back in 1980. My dad would have never thought of banking over the Internet. Now you can bank with a place in another state, you can get car loans from credit card companies, you can get a home loan from a company over the Internet. I have got two home loans over the Internet. Both worked out great. What are some things to look for in a Bank and how to compare Banks?
Banking Basics
1. Where to Bank at?
Do you bank at your local Bank? On-line,Credit Union or a Brokerage House. Make sure your account is insured against loss by the federal government. Normally the government covers up to $100,000 per depositor.
2. What are the Costs?
What costs will your Banking be? Banks can charge fees if you don’t keep a minimum balance. There can be different fees for different services also. Compare the fees from local Banks to others, compare options and services available with each company.
3. What Interest are you making?
Interest bearing accounts can be less at a local Bank account than other places such as Brokerage houses or mutual fund companies. Each can have a minimum balance required to keep with them.
4. Annual Percentage Yield
Annual Percentage Yield is the best way to compare places to bank. Some quote Interest rates and some Annual Percentage Yield. Annual Percentage Yield are figured the same way at each place.
5. ATM Fee’s
Be sure to see what they charge If you use your ATM card a lot it can really effect your budget. Some costs $1.00 or more to use at another Banks ATM machine.
6. Certificates of Deposits
Certificates of Deposits VS Money Market accounts. Certificates of Deposits own have better Interest rates than Money Market Accounts and Savings accounts. The downside is that with a Certificate of Deposits you can’t touch your money for a period of time from 3 months to possibly years. With a Money Market you don’t have to tie up your money like Certificates of Deposits and they pay more than most local bank saving accounts. Normally though they don’t always pay as much Interest rate as a Certificate of Deposit.
7. The Internet for Loans and Banking
Possibly take a look at the Internet to shop for Bank services, Car Loans, Home Loans and more. You can shop around for the best Interest rates. I have helped a few friends get a home loan from a On-Line Mortgage company. They all had been refused loans from local companies. When I first a company Mortgage On-Line, I told my Realtor who I was using and he was very skeptical. Then when it got close to closing time I had a Title company contact me and they were also skeptical. They had never closed a loan with this company. After closing was done she said it was one of her best closings, paper work was complete and all there on time. We closed in only 30 minutes. Besides a great closing, I got a lot of communication through out the process and the most important factor was the loan costs were low and the Interest rate was low also.
8. No need to use a Bank
You don’t have to use a Traditional Bank. You can bank with other places such as Credit Unions, Brokerage Houses, Mutual Find companies, Credit Card Companies. Shop around and ask what each place offers. I got my last car loan from a Credit Card company. They had the best Interest rates and had better terms.
Don’t take No
I have always told people to think outside the box. It does pay to shop around. In 2005 I had a offer accepted for a Investment Property in another state. I had the first twelve Banks and Mortgage companies say they would not loan me the money. I didn’t give up, the thirteenth place loan me the money at a low Interest rate. The company that loaned me the money was out of state also. I called them on the phone to apply for the loan.We did everything through mail, e-mail and fax machines. I currently do my main banking with a company in another state.
Any questions or suggestions to help others with the search on the best place to Bank let us know. Have a great day.
Leave a Comment