Have you heard this question has recently been asked in your presence: " Do you have a bank account?" If someone has told that he did not have a transaction account in the bank, there is a good chance you would describe him as a bit strange. Because you are convinced that this is not a matter of personal choice, but rather necessity.
We would agree with you, since owning a bank account is a prerequisite for many things. Before opening a bank account or transferring a transaction account to another bank, it is important to consider a few things. The cost of monthly account maintenance, other fees and interest rates.
You cannot deny, banks are dictating our destiny. Let's take a virtual tour on how to choose a bank.
The first question to ask yourself is when it is necessary to have a bank account?
- When you are an individual
- When you are a legal entity
- When you are temporarily unemployed
If your response is "In all of the above-mentioned cases", that is great! You have realized that you are a victim of a system! Unless you want to go to some abandoned place and produce food on your own, you have to calm down and accept things as they are. A bank account is a must. Society is not ready to switch to a "barter mode", which means exchange goods or services without using money. So, which road to choose?
Let's move to stage two of this process.
How many accounts you can have at various banks? There is no limit. For instance, you can open a checking account, savings and certificate of deposit. Each in a different bank. We just discovered endless possibilities. Go through insights regarding banks and other financial institutions. businessinsider.com gives good pieces of advice. If you want to develop your stalking abilities and your personality is a kind of patient, go to statista.com and collect a lot of data regarding financial institutions.
Before you become a versed decision-maker, especially in this sensible field of the most important resources in our lives, you need to pass a few more steps.
You need to know:
- What is the purpose of your account? Basic checking account, savings, certificate of deposit etc.
- Which additional services/ tools bank offers?
- Fees and interest rates
Banks charge a certain amount for their services. In fact, their product is money. Sometimes the case could be: "Money is not a problem, there is no money". At least we often don't see it with our eyes, nor we can touch it. We are going to learn about basic banking fees.
The minimum account balance fee is the minimum required balance for each day/ month. If the balance is lower than required (even for a single day) client will be charged at the end of the month.
Withdrawal fees - after you finish a certain amount of transfers per month, the bank charges a fee for every further transaction.
ATM fee applies when you use another banks machine.
Overdraft fee must be paid when your balance goes below zero. Some institutions add interest rate as well.
To widen your horizons, visit investopedia.com. Also, while choosing a bank do some research via the internet or ask friends for a recommendation. You can use old fashion methods: paper and pencil while calculating the best solution. Focus on your needs, you don't have to accept everything that the bank offers. And good luck.
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