How to Choose the Right Bank: 7 Things You Should Consider

Finding the right bank can feel like trying to pick out the perfect pair of shoes—there’s a lot to consider, and not every option will fit your needs. Some banks might look great at first glance, but over time, you start to realize they pinch in the wrong places. So, how do you find the one that fits just right? You don’t want to settle, especially when your hard-earned money is on the line.

This isn’t just about comparing interest rates or fancy perks. You need a bank that’s more than just a place to stash your cash. Think of it as a long-term relationship: you want to be with a bank that makes life easier, supports your goals, and sticks by your side during both the exciting and the stressful times.

In this guide, we’re going to break down seven key tips to help you find the perfect banking match. We’ll cover everything from hidden fees to customer service, and by the end, you’ll feel confident about choosing a bank that suits your needs, not the other way around. Grab your coffee, sit back, and let’s dive in.

1. Understand Your Personal Banking Habits

Let’s start with you—yes, you. What do you really need from a bank? Everyone’s financial habits are different, and what works for one person might not work for another. Are you someone who checks their account daily? Do you prefer going into a branch or handling everything from your phone?

Maybe you’ve got bigger financial goals, like buying a house or setting up a long-term savings plan. Whatever your needs, it’s important to get clear on what you expect from your bank before diving into the options.

Here are a few things to consider:

• Everyday transactions: Do you need an account for paying bills and making everyday purchases? Look for banks with low or no fees on checking accounts.
• Savings focus: Planning to save for a rainy day or a big purchase? Make sure your bank offers competitive interest rates on savings accounts.
• Loans and credit: If you’re thinking about borrowing in the future—whether for a car, home, or personal loan—choose a bank that offers favorable loan rates and flexible terms.
• Travel needs: If you’re a jet setter, a bank with low foreign transaction fees and international ATM access could make a huge difference in your travel experience.

Most customers choose a bank based on convenience, like location or online access, but fewer than half think about whether the bank’s services actually align with their long-term needs.

Taking a few minutes to map out what you need from a bank will help you narrow down the options before you even begin your search. Trust me, knowing your must-haves makes everything easier.

2. Pay Close Attention to Fee Structures

Nobody likes fees, but unfortunately, they’re a reality in banking. The good news is that you can avoid most of them if you know what to look for. Some banks love to sneak in fees wherever they can—whether it's ATM fees, overdraft charges, or monthly maintenance fees. These costs can add up over time, quietly chipping away at your balance.

Here are some fees to watch out for:

• Monthly maintenance fees: Some banks charge just for having an account. But here’s the kicker—many banks will waive this fee if you meet specific requirements, like having a direct deposit or maintaining a minimum balance.
• ATM fees: This one can sting. If you frequently use out-of-network ATMs, the fees can pile up. Look for banks that either have a large network of ATMs or reimburse fees from other banks.
• Overdraft fees: It happens to the best of us—spending more than what’s in the account. Banks love to charge hefty overdraft fees, but some are more forgiving than others. Check if your bank offers overdraft protection or charges a lower fee.
• Wire transfer fees: Sending or receiving money via wire transfer can get expensive. Some banks offer free or low-cost options, so if you make these transfers often, it’s worth looking into.

Understanding the fee structure of a bank might not sound exciting, but trust me, it’s important. Over time, these fees can quietly drain your account. So be sure to read the fine print before committing.

3. Decide Between Traditional Banks and Online Banks

The way people bank has changed dramatically in recent years. It used to be that traditional brick-and-mortar banks were the only option, but today, online banks have entered the scene with full force. And each has its pros and cons.

Traditional Banks:

• They offer physical branches, which can be comforting when you want to speak with someone in person.
• You might find a wider range of services, from mortgages to financial advisors.
• The downside? They often come with higher fees and lower interest rates on savings accounts.

Online Banks:

• They tend to offer higher interest rates on savings accounts because they don’t have the overhead costs of physical locations.
• Most have fewer or no fees, making them attractive to budget-conscious customers.
• The trade-off? There’s no physical branch to visit if you need in-person support, though many have excellent customer service via phone or chat.

If you’re comfortable managing your finances digitally, an online bank could offer better value. However, if you still like the option of walking into a branch for in-person help, traditional banks may be the better route.

If you can’t decide between the two, consider using both. You can keep a checking account with a traditional bank for easy ATM access and an online savings account for higher interest rates.

4. Evaluate the Bank’s Digital Tools and Mobile App

Let’s be real: most of us rely on our phones for just about everything these days, including managing our finances. If a bank doesn’t offer a solid mobile app, it’s already falling behind. Whether it’s depositing checks, transferring funds, or even budgeting, having a user-friendly mobile app can make your banking experience way more convenient.

Here are some app features to look for:

• Mobile check deposits: No need to visit a branch—just snap a photo of your check, and it’s deposited.
• Real-time alerts: Get notified instantly about suspicious activity, low balances, or upcoming bills.
• Easy transfers: Quickly move money between accounts or send money to friends and family.
• Budgeting tools: Some apps offer built-in financial planning tools that help you keep track of your spending and saving goals.

"A new survey from Chase found 62% of consumers said they can’t live without their mobile banking app, and 78% are using it weekly."

If you’re like most people and handle your finances digitally, be sure to test out the app’s features before committing to a bank. Check reviews and even download a demo version, if possible, to make sure it fits your needs.

5. Don’t Overlook Interest Rates

Interest rates might seem like a boring topic, but they can make a huge difference in your financial health over time. Whether you’re opening a savings account, applying for a loan, or considering a credit card, the rates a bank offers will directly impact how much money you make (or owe).

Let’s break it down:

• Savings Accounts: If your primary goal is to save, choosing a bank with a higher interest rate can help your savings grow faster. Online banks typically offer better rates than traditional ones.
• Certificates of Deposit (CDs): If you’re willing to lock up your money for a set period, CDs often offer higher interest rates than regular savings accounts.
• Loans and Credit Cards: When it comes to borrowing money, low interest rates are key. Even a difference of one or two percentage points can add up to hundreds or thousands of dollars in savings over the life of a loan.

Sure, interest rates might not seem like a big deal in the short term, but over the long haul, they can add up. A little extra interest earned on your savings or lower rates on a loan can make a significant difference.

6. Customer Service

No one likes to think about customer service until they need it. But when things go wrong, you’ll be grateful for a bank that offers top-notch support. Whether it’s a lost debit card, a strange charge on your account, or just a question about your options, having a bank with helpful customer service can save you a lot of headaches.

When evaluating a bank’s customer service, here’s what to consider:

• Availability: Do they offer 24/7 support? Can you reach them via phone, chat, or email?
• Reputation: Check reviews and ratings online. Are customers generally happy with how issues are resolved?
• In-person support: If you’re with a traditional bank, how helpful and accessible are their branch staff?

The peace of mind that comes from knowing you can reach someone when things go awry is priceless. Don’t underestimate the power of excellent customer service when choosing a bank.

7. Security Should Always Be a Priority

In an era of data breaches and cyberattacks, bank security is more critical than ever. When you choose a bank, you’re trusting it with your most sensitive financial information, so it’s essential to make sure they take security seriously.

Here’s what to look for:

• Two-factor authentication (2FA): Adds an extra layer of security when logging into your account by requiring two forms of verification.
• Fraud protection: Does the bank have systems in place to alert you of suspicious activity? Many banks offer real-time fraud monitoring and quick resolutions.
• FDIC Insurance: This ensures that your money (up to $250,000) is safe in the event that your bank fails.
• Encryption: Your bank should use strong encryption to protect your data from hackers when you’re logging into your account online or through a mobile app.

A bank’s security measures should be clear and easy to find. If you have to dig through pages of fine print to understand their protection policies, it might be a sign to keep looking.

"In 2023, over 353 million individuals were affected in the same year by data compromises, including data breaches, leakage, and exposure." — Statista

Final Thoughts: Your Bank Should Fit Your Life

The perfect bank isn’t about the one with the flashiest marketing or the trendiest app. It’s about finding a financial partner that fits your lifestyle, aligns with your goals, and offers the services you truly need. Whether you’re chasing higher savings rates, looking for better loan options, or simply wanting a no-fuss experience, the right bank is out there for you.

Take your time, do your research, and don’t be afraid to switch banks if your current one isn’t meeting your needs. After all, banking should make your financial life easier, not more complicated.