Here's how I selected my first bank, the one I've now been with for decades. A branch was a few blocks from where I had my first job after college and on the way to the bus stop.
There are so many banking choices available that you don't have to feel as if you're being held hostage by a banking institution that has begun to get on your nerves. Banking is such a basic function of personal finance that you should consider conducting a checkup. Are you getting what you need from your financial institution?
If not, maybe you need some help in how to select the most cost-effective option for your banking needs. If you do, the Federal Deposit Insurance Corp., the agency that specifically insures deposits at the nation's 7,309 banks and savings associations, has put together useful tips in selecting a bank.
The summer issue of its newsletter, FDIC Consumer News, offers a 10- question self-exam to figure out the best way to handle your banking needs at any financial institution, including a credit union. Top of the list is: How do you want to deposit money into an account?
Technology has opened up a lot more options for getting checks cashed. There is the tried-and-true direct deposit. But perhaps you're old-fashioned and still like to see a teller. Or maybe you want the ability to deposit checks using your smartphone or other mobile devices.
Next, it may be time to revisit the way you bank. Ask yourself: How do you want to pay bills or purchase goods? Have you become completely comfortable with using a debit card? The FDIC says that results from a recent pilot program at nine institutions offering electronic, card-based accounts found that "checkless checking" can reduce the risk of overdrawing accounts.
Here are some questions you might not have asked in a long time. What is it costing me to stay at this bank? What does the bank charge for falling below the minimum balance requirement? Look at the fees you've paid over the last several months to a year. Are you getting your money's worth in services? If not, it's another reason to see if another institution will do better.
One of the questions the FDIC suggests you ask is: Am I giving too much consideration to "rewards" or other special offers?
"One-time deals, whether they involve cash or merchandise, can induce consumers to select an account that isn't necessarily the most cost-effective," said Luke W. Reynolds, acting associate director of the FDIC's Division of Depositor and Consumer Protection.
To get the self-exam, go to www.fdic.gov. Search for "What's the Right Account for Your Everyday Banking Needs?"
Just like anything else financial, it may be time for a banking checkup.
Ask yourself these questions to see if your bank is meeting your needs.