When it comes to your hard-earned money, you want to make sure it is in a financial institution that not only gives you a great rate of return but also provides the services and tools you need and the support you deserve. According to AARP, “Americans age 55 and up have been using their current checking account for an average of about 25 years,” one of the main reasons being “it’s the same account I’ve always had.”1 That should not be the reason for keeping your money in a financial establishment when other entities offer better rates of return and added service benefits.
Weighing Your Financial Needs
What are important factors to consider when selecting a bank or credit union? What may be essential to one person may not be to another. Each deciding element needs to be weighed. If an institution cannot provide everything you are looking for, perhaps you require two different financial entities to meet all your needs. Most significant, consider your banking habits and your short and long-term financial goals.
Factors to Consider
- Do you need a brick-and-mortar presence? Is it essential for you to be able to walk into a branch, speak face-to-face with a person, and leave with supporting documents in hand? Online banks may offer higher rates of return, but most do not have branches or ATMs. Are you comfortable banking only via the Internet, email, chat, and phone? Things to consider:
- Accessibility to your money
- Timeliness of transactions not conducted in person
- Limits to the number of transactions per month
- Is proximity to a branch or ATM important? You may not want to conduct 100% of your banking online, but knowing you can physically go to a branch or ATM is all you need to feel secure about your investment – proximity may be irrelevant.
- Are you looking for a full-service institution with a significant portfolio of offerings such as ATMs, safety deposit boxes, notary services, 24 hr. customer service, student or child accounts, and mortgages?
- Does the financial institution align with your values? Many Credit Unions invest back into the community. Their loyalties are to their members, not stockholders. That is why they provide personalized services at better rates. Since credit unions are member-owned, profits are returned to members through lower fees and rates on loans and higher interest on savings instruments.
- What are the financial institution’s fee structures? Are there thresholds to maintain to avoid fees?
- Are there any loyalty perks for bundling services?
- Does the institution have good reviews?
- Is the institution insured by the FDIC or NCUA?
To pick the best financial institution for you, start by considering how you will use it. Weigh those factors and call or visit several of your financial contenders. Interview your potential bank or credit union. Your hard-earned money deserves to be where it is secure and offers the best benefits for YOU!
Please visit one of our branches or speak with one of our representatives to learn more about how Welcome Federal Credit Union (WFCU) aligns with your values and meets your financial needs and goals. You’re always welcome at WFCU!
1 https://www.bankrate.com/banking/how-long-people-keep-their-checking-savings-accounts/