How to choose a better bank account for your money

Dec

14

How to choose a better bank account for your money

It’s that time of year again when creating a “wish list” for someone else is a common practice. Have you considered a wish list for yourself that doesn’t include spending anything? Your money was “nice” to you all year long, so make sure it gets the best gift. A better bank account.

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There are numerous ways to improve your personal finances, but the best place to start is opening the right Checking account. Here are 3 ways to make sure that you are selecting a bank account that your money will love.

1. Think twice about bonuses

It seems like everyone these days offers a checking account including Google in 2020. There’s no shortage of options, but that can make it harder to choose the right one.

Don’t get suckered by a “too good to be true” bank account sign up bonus worth hundreds of dollars. You will more than likely have to jump through a lot of hoops, and make numerous phone calls to collect your reward. When it’s all said and done the whole process can take months to complete.

If you are one of the few that actually reaps the rewards of a big bank sign up bonus be prepared to dodge a number of different fees in the coming months. Mega banks collect billions in checking fees every year, so yes they are good at taking your money.

If you’re still on the fence about big sign up bonuses here’s 5 more reasons why you should reconsider.

2. Higher interest pays off

When it comes to choosing a better checking account for your money there are two important factors to consider and that is rates and fees. What really sets a bank account apart and helps you in the long run are the fees it doesn’t charge and the interest it pays out.

You shouldn’t settle for a dismal 0.02% interest rate when there are much better options out there. The highest Checking account rates are usually offered by digital banks like Radius and local credit unions.

3. Fewer fees for your money

Checking account fees are just as important as rates for your money. Never open an account that charges a monthly service fee or minimum balance fee. That fee alone can cost you hundreds over a 12 month period.

ATM fees are on the rise again for the 15th year in a row according to a recent bankrate survey. The total average cost of making an out of network ATM withdraw is about $5, but that doesn’t mean you have to pay it.  

Besides mega sized banks there are still a lot of financial institutions that won’t charge you at all for using an ATM outside of their network. Keep in mind over 80% of credit unions in the U.S. fall in to this category.

It may take a little research on your part to find the best place for your money, but keeping these 3 things in mind will make it easier. After all the right Checking account shouldn’t cost you money. It should help you save more of it. 

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