6 Things to Consider When Opening a Bank Account

Planning to open a bank account soon? Consider these things before you open one so you can make the most out of your money in the bank.

Every bank offers special services to clients. Some are available to everyone while other offers are only exclusive to a select number. When choosing banks, it is important to take note of these things as they will help you determine which bank fits your needs. Remember, not all the services banks offer come with a free price tag. Here are five things you need to consider when opening a bank account for the first time.

The Account Type

There are different types of bank accounts. Some, for instance, come with an ATM card which you can use to withdraw money anytime, anywhere. Others come with checks. Depending on your needs, choose the type that will give you the most convenience. Remember that each has pros and cons. For instance, a checking account will often have higher maintaining balance.

The Maintaining Balance

Banks require you to keep a minimum amount in your account. As much as you can, choose one with no maintaining balance, especially if you are the type who withdraws constantly. This is because the bank charges a rate when you go below the minimum. And we tell you, they will charge you higher than what you will earn in interest.

The Dormancy Fee

You’d think banks would be happier if you do not touch your money at all. Well, they would be because they will charge you a dormancy fee when your account registers no activity—deposits or withdrawals—in a specific period of time. Ask the bank how long that period is and how much they charge.

The Interest Rate

Interest rates vary depending on the type of account and the money deposited. Ask the bank the interest scheme and, if you can, go for the higher interest rate even if it means depositing a certain amount at the start.

The Wireless Access

Banks nowadays offer services beyond their branches. Ask the bank for its online and mobile banking services and apply for one on the spot. These services offer so much convenience since you can view your balance, transfer money, pay your bills, and even purchase loads with just a few clicks.

The ATM Availability and Fees

For someone who is always on the go, the availability of ATM machines is primary. Choose banks whose ATMs you won’t have a hard time finding wherever your locations is. Ask for the daily withdrawal limit as well as the fees the bank charges when you withdraw money from another bank’s ATM.