How to choose the right bank

What to look for in a bank? It’s a personal decision with many factors, including your lifestyle and financial goals.

Choosing a bank shouldn’t be rushed. You’re trusting that institution with your personal information and money. Taking time to compare your options can help you find a bank that meets your needs.

If you’re shopping around, our guide can make it easier to identify what to look for in a bank. Here, you’ll learn how to choose the right bank that best fits your financial needs.

How to choose the right bank starts with deciding what kind of account (or accounts) you need. What are your options? 

Bank accounts might include:

• Checking account

• Savings account

• Money market account

• Certificate of deposit (CD)

First, think about your everyday and long-term financial needs and how you manage your money. For example, you may want a checking account along with some CDs to manage your daily spending and longer-term savings. Not every bank offers all types of accounts, though. If you want the ease of having all of your accounts at the same bank, this is something to think about.

Many banks offer no-fee checking accounts, meaning you don’t have to pay a certain amount to maintain your account, and are a great option for getting rid of unnecessary fees. Some accounts take the no-fee approach even further. These accounts may not have charges for overdrafts, check reorders and insufficient funds. They may also offer fee-free ATM withdrawals, helping you keep more money in your account. Capital One checking and savings accounts are fee-free: Add in no minimum balance requirements and you have more money in your wallet. Just look for the Capital One, MoneyPass or Allpoint logo to enjoy fee-free withdrawals at over 70,000 locations.

On the other hand, some banks may waive fees if you meet certain requirements. These could include keeping a minimum balance, using your account for a certain amount of purchases each month or receiving direct deposits. Other banks may offer fee waivers if you have more than one account with them.

The next decision in your journey on how to choose the right bank: local vs. online. Some people prefer banking in person, while others like making transactions through a mobile app, online or over the phone. There’s no right answer. Just consider whether online banking or banking at a branch or some combination of the two is better for you.

• Online banks may offer lower fees, higher interest rates and appealing features. Because they don’t have to spend money on a physical location, many of the savings and benefits are passed on to customers.

• Online banking is simple and available 24/7 for customers who prefer managing their money digitally.

As you wonder, “What bank should I choose?” consider the most important features for you. Then, find the bank that matches your needs.

• Do you prefer up-to-date technology? Because online banks operate in an online format, they may roll out new features and products faster than traditional banks. However, even some traditional banks can be tech-forward. 

• How do you like to deposit and withdraw funds? If you regularly deposit cash or large checks, you may prefer a bank with in-person services. On the other hand, an online bank may have everything you need with features like mobile check deposits and automated clearing house (ACH) transfers. ACH is the system that allows money to be electronically deposited into financial institutions. The mobile deposit feature within the Capital One app gives you peace of mind by providing confirmation and a timeline for when your deposit will clear.

• Do you need specific features? Many banks offer overdraft protection, and some even provide it for free. You shouldn’t have to pay overdraft fees, and with Capital One 360 Checking you don’t. Other features of the Capital One 360 Checking account, like early paycheck and online bill pay, are also worth thinking about. It’s your money, and you earned it. Why wait when you can get your paycheck up to 2 days early?

Tip: Most banks are members of the Federal Deposit Insurance Corporation (FDIC), which helps protect the money you put into your account. Before opening an account, make sure that your money will be insured by this government agency. Your funds may be more at risk at an institution that is not FDIC insured.

Learning about a bank’s products and services is a good place to start. Hearing from customers who use those products can provide helpful insights as you make your decision. Ask friends and family for their experiences and read online reviews to better understand how a bank treats its customers.

Lastly, look at specific terms or special features to decide the right account for your needs. Some accounts offer special interest rates for new customers or require a certain balance to earn the advertised rate. Keep these details in mind when comparing accounts to make sure the offer matches your financial goals.

Choosing a new bank is a personal decision based on your financial goals, habits and the features that matter most to you. Comparing your options can help you find accounts that fit the way you manage your money. Doing some research up front can help you feel good about your choice and avoid unexpected fees or restrictions.

Here’s how to choose the right bank for you:

• Look for a bank that offers the accounts, features and services that match your financial needs.

• Compare fees, convenience and account terms to find an option that works for your situation.

• Consider both your current priorities and future goals when choosing where to keep your money.

Capital One’s online process lets you open a 360 Checking account from your couch in about 5 minutes.