Where to keep your money when times are tough

May

24

Where to keep your money when times are tough

You work hard for your money, so it’s important (now more than ever) to make sure that it’s in good hands. There are thousands of traditional financial institutions and a growing number of neo banks in the U.S.

How do you know which one is deserving of your money?

The choice can be tough if you’re not considering the right things. In these economic times one of the most important factors to consider is how trustworthy a financial institution is.

If a bank is notorious for making headlines for poor service or excessive fees you should avoid it at all costs. It’s always best to avoid unnecessary costs charged by a financial institution.

Image by Anastasia Gepp from Pixabay

Your current bank may be offering relief by waiving certain fees because of the global pandemic, which is nice but not very common. 

According to DepositAccounts only 6 of the 26 largest banks and credit unions have made waiving overdraft or NSF fees an option, and only five are waiving ATM fees. Of those that charge monthly fees, only two banks have committed to waiving them.

Keep in mind digital banks like chime offer far less fees for a personal account, and Novo does the same with its business account. You will also find that most credit unions charge less in fees. 

Only 10% of credit unions charge their members an extended overdraft fee compared to over 90% of national banks.

No one wants to overdraw their checking account, but in these times many consumers are struggling to get by. It only takes one unexpected bill or expense to trigger a number of potential fees that add up fast.

Kasasa found that 65% of those consumers whose primary financial institutions is a community bank or credit union are satisfied with their service, compared to only 54% of those using a megabank during the recent pandemic.