NASHVILLE, Tenn. (WTVF/CONSUMER REPORTS) — Does your bank charge high fees? Give you practically no interest on your savings? Have few banking options and poor customer service? If this sounds like your bank, it may be time to find another one.
You might not think about shopping around to get the most bang for your buck from your bank, but it might be worth your time. There are more options than ever — from the traditional brick-and-mortar branch, to credit unions, to online-only banks, which have no branches at all.
"Each type of bank has its own positives and negatives. So, it’s important to figure out what’s most important to you when you’re looking for a bank. You might even find that it makes sense to bank at more than one place at a time," said Scott Medintz with Consumer Reports.
If in-person customer service is important to you, then a brick-and-mortar bank is your best bet. But even then, it pays to shop around.
"I would recommend that you pay a visit to any bank that you’re considering becoming a part of, to make sure it has everything you need, that the hours make sense for your life and the staffing is really up to snuff," Medintz said.
Looking for the best savings rates? Get online and shop around. Sites like Bankrate.com and Nerdwallet can help. With a quick search, Consumer Reports found nearly a dozen banks paying 3% or better.
Before you jump at that promotion for a free checking account or high-interest savings account — be sure to read the fine print.
“A supposedly 'free checking account' isn’t really a bargain if it hits you with huge fees when you overdraft by a few dollars or something like that," Medintz said.
Changing banks requires some planning: be sure to open the new account before closing your existing one. If you use direct deposit be sure to change it to the new account, as well as any automatic bill payments. Lastly, transfer any remaining money and close that old account.
Remember though to make sure you keep your old account open until all of your checks and payments have cleared so you don't get hit with any fees.
