9 questions you should ask before opening a bank account. (2024)

A bank is a bank is a bank, right? Not exactly. Although every bank allows you to save or borrow money, the difference is in the details with financial institutions. To choose the option that best fits your situation, you need to do a bit of research.

Ask these 9 questions before opening a bank account. To get the answers, meet with bank representatives, check in with family, friends, and read online reviews and the bank's website.

1. What are the bank's fees?

Banks charge a variety of fees. The most common are:

  • Account maintenance
  • Minimum balance
  • ATM use
  • Overdrafts
  • Return deposits
  • Foreign transactions
  • Transferring money between accounts
  • Personal checks

It's easy to glaze over when reading a fee schedule. However, when you take the time to work out which fees might apply to you and then choose a low-fee bank, you could save hundreds of dollars a year.

Banks might waive certain fees in particular circ*mstances, such as maintenance fees that are eliminated if you have an automatic deposit or meet a minimum balance.

2. Where are the bank's ATMs?

If you're the type to use an ATM to withdraw cash and deposit checks, you'll likely save time by choosing a bank with an ATM near your home, work, or kids' school. You won't be charged to use your own bank's ATM or, sometimes, ATMs in your bank's network. But you might be charged, by both your bank and the other bank, for using a non-network ATM.

If you're interested in an online bank that has no physical locations, see if it has a policy that lets you use certain ATMs for free.

3. Is there a minimum balance required?

Some banks require you to keep a certain amount of money in your checking or savings account, recorded either daily or monthly. If you fall below that amount, you could be charged a fee or denied interest payments, or your bank might even close your account. Often, there are ways to waive that requirement, such as using direct deposit for your paychecks.

4. What's the accounts' interest rate?

Bank accounts generally earn interest, particularly savingsand money marketaccounts. You can often find the highest rates at an online bank, but brick-and-mortar banks might do well here, too.

5. Does the bank have good customer service?

When something goes wrong, you want your bank to be responsive and helpful. Ask a trusted friend or neighbor, and check online reviews, to see what others think about the bank. This will give you a sense of how well the bank treats and responds to customers.

6. Does the bank have online banking and a mobile app?

These days, you can accomplish a lot through mobile and computer apps: you can check your balance, pay bills, transfer money between accounts, and even deposit funds using mobile deposit. If this is important to you, make sure your potential new bank has these features.

7. How easy is it to transfer money out of your account?

A lot of banks will let you transfer money from one checking account to another, from savings to a checking or vice versa, or to someone else who uses the same bank. You might even be able to wire money to a person or company that doesn't have an account with that bank.

One note: regardless of what bank you use, you can't transfer or withdraw money from your savings account more than six times per month, per federal regulations.

8. Can you access your money when traveling?

If traveling internationally is in your future, you'll want to make sure you can access your money while abroad. There are a couple ways to do this, from using your debit cardas usual to getting cash at ATMs (many European countries still rely on cash), which will issue money in that country's currency. Understand what you need to do to make sure your cards and accounts work while abroad and check what types of fees there are for using your debit card for purchases or cash withdraws.

9. Will your money be insured?

At most banks, $250,000 of your money is insured by the Federal Deposit Insurance Corporation (FDIC). That means if the bank fails, the first $250,000 will be returned to you. If the bank you're looking at is not insured, you should probably move on.

A little research goes a long way

It might sound like a lot of work, but you should be able to answer these questions with just a couple of hours of research. Considering the money, time, and hassle you could save by picking the best bank for you, these are hours well spent.

9 questions you should ask before opening a bank account. (2024)

FAQs

9 questions you should ask before opening a bank account.? ›

Explanation: Before opening an account at a national bank, community bank, or credit union, there are several questions you should ask: What type of fees are there with this account? It is important to know if there are any monthly maintenance fees, overdraft fees, or fees for additional services like check printing.

What is 1 questions you should ask before opening an account at a national bank community bank or credit union? ›

Explanation: Before opening an account at a national bank, community bank, or credit union, there are several questions you should ask: What type of fees are there with this account? It is important to know if there are any monthly maintenance fees, overdraft fees, or fees for additional services like check printing.

What to check before opening a bank account? ›

Minimum Balance Requirement

Every bank has different savings account limits and minimum balance criteria. The bank may charge a high monthly penalty if you fail to maintain this. So, understand your bank's minimum balance requirement before opening a savings account.

What questions should you ask before choosing a bank Quizlet? ›

- Where can you get the highest rate of interest? - Where can you obtain a checking account with low/no fees? - Does it have online banking services? - Will you be able to borrow money from the institution when you need it?

What is important to know when opening a bank account? ›

All banks require proof of identification (ID) to open an account. They will likely require specific forms of ID. Save yourself the headache of multiple trips to the bank and make sure you bring the essential documents. Required ID is important, because the bank needs to verify your name, date of birth, and address.

What are 3 requirements for opening a bank account? ›

What do I need to open a bank account? Here's what you'll need to open a bank account online or in person: a government-issued ID, personal details such as your Social Security number, and a way to fund your new account with an initial deposit.

What is important when choosing a bank account? ›

Security is crucial, so ensure the bank is insured by the FDIC or NCUA. Bank fees can eat into your savings, so be aware of ATM charges, maintenance fees, and overdraft protection fees. Interest rates vary, so compare rates and consider online banks that offer higher rates on savings and checking accounts.

What questions should I ask a credit union? ›

Is there a minimum balance requirement to avoid a monthly fee? If so what is it? How soon is my money available after I deposit it? (Both banks and credit unions can put holds on large and sometimes even small deposits). Do I need to open a checking account or some other account to have a savings account?

What do banks ask for when opening a bank account? ›

Almost every bank requires you to present a valid government-issued photo ID when opening a checking account. This verifies that you are who you say you are and allows the bank to match your name and face. The most common forms of government-issued photo ID are a driver's license or a state-issued ID.

What advice would you offer to someone who is considering opening a checking account? ›

Research all of your options, then compare checking accounts based on your financial situation and spending habits. For example, if you plan to maintain a high balance, you might consider an account that offers the potential to earn interest.

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