There are many factors to consider when trying to figure out the best bank for you. There is more to it then deciding by walking in the first bank in your neighborhood or just what the best bank Cd’s rate are or the best bank savings account are. You first need to decide exactly what you are using this bank for. If it is simply a place to hold your savings you’ll want to look for the best interest rate, but you’ll also want to look at ease of access to your money. You may want it hard to get at since you are tyring to save money. However, if it’s an emergency fund the most important part might be ease of access 24 hours a day while earning some interest.
Best Bank Accounts
The best bank accounts do exactly what you want them to do without little frills to distract you. Extras tend to cost and while they may not “charge” a fee for this cost you pay in lower interest rates. Just because they’ll cover 2 overdrafts no charge doesn’t mean you want to pay in lower rates because other people take advantage of this function when you never overdraft. If they do try to charge for any of your bank accounts run away because the best banks know you are the customer providing them with your money not the other way around. If you want a savings account find the best interest with a user friendly style you can handle. If you don’t like searching web pages for new deals consider a brick and mortar bank so you have a face to talk to. The best bank will suggest better options for you because of how you bank not because of what extra fee they want to earn. If you feel like you’re being sold keep looking. If you prefer to not talk to people you could consider a online bank.
Best Online Bank
The best online bank or best Internet bank often have great rates because they have very little overhead. Unfortunately, you often need to find a regular bank to be your in-between because the online bank will transfer money from your regular bank to the online account or back to your regular account so you can get the money. Also, some online banks have added ATM cards that can be used at any ATM where they’ll reimburse the ATM fee. This is cheaper for them because they didn’t have to buy or manage any of the cash machines. Online banks are great for the best bank rates, but not usually as good for customer service because they are trying to run on smaller margins.
Best Bank CD Rates
CD rates or Cash Deposits is a little more variable from local bank to local bank with rates being more blended in the big national banks. Local banks tend to like the security of having your money locked in longer and tend to pay a bit better then the chain banks because they make a lot of money off of fees and conveniences. Definitely shop around on CD rates since your money will be tied up with fees for withdrawal.
Best Banks Summary
As with many financial decisions the best choice is usually, it depends. Personally I hate big national banks as they have become more fee based and less loan based. I feel they have had a negative impact on the financial health of middle America. I love local banks and credit unions because they are much more willing to look beyond the numbers to see the individual situation. This doesn’t mean they will loan to anyone, but it means you are more than your credit score and if your story is compelling and you have a good numbers head on your shoulder a banker is more willing to take the risk with you. I like online banks like INGDIRECDT for long term savings as they tend to have good rates and I don’t want easy access to the money. I don’t generally like CDs as an investment of any kind I think the stock market gives much better options.
