How to Choose a Bank in the USA?


Choosing the bank that best fits your needs can make managing your finances easier. In this article, I will tell you how to choose a bank you will use for a long time.

A contract with a bank is a union for many years and with obligations that you will have to fulfill. That is, choosing a bank is almost like choosing a life partner. But if relations with partners are accepted to build on love, with banks you have to do it based on calculation. We will tell you how to choose the right bank.

Define priorities


Before choosing a bank, it is important to determine what you expect from it. Reliability, profitability, accessibility, quality of service – the priorities and combinations of these features depend on your needs. In addition, some services can not be found in all banks. I was comparing and choosing banks for a very long time. I used various services until I came across MYFIN, which helped me to decide what to choose.

Or maybe you don’t have to go to the bank and other financial instruments will suit you better? For example, if you have an amount that you want to multiply, then you can do it in different ways – not only open a deposit but also buy securities. The annual income on them can be higher, although the risks of loss will also increase.

Compare the offers

It is not necessary to enter into a contract with the first bank you found, even if it was advised by your best friend, you liked the advertising, or so says the inner voice. Explore the offers of several banks, assess the cost of services, the return on deposits, and the quality of service. This way you will be able to find the best conditions for you.

Check the license


Fake banks are extremely rare, but still possible. Always make sure that you are dealing with a bank, especially if it is a financial institution with a name unknown to you. If it does not have a license from Bank of America, you are dealing with a fraudster.

Explore Accessibility

When choosing a bank it is worth carefully studying the location of branches and ATMs, the possibility of online banking, and correlate this to your needs.

Think about how often you will have to go to a bank branch. Maybe its physical accessibility is an important criterion for you. And if you plan to frequently withdraw or deposit cash from your card, make sure there are ATMs of that bank in places convenient to you. This way you can deposit and withdraw money from your card without a fee.

Assess whether you are willing to go to the bank on the other side of town every month because the interest rate on the loan is a little lower there. Or, you may find it easier to pay more at the bank near your home and not have to go anywhere.

Or maybe you don’t want to waste time at the bank at all and find it easier to do everything remotely? Then check the bank’s online services. See if they are easy to use and if you can pay for the services you need all the time.

Evaluate reliability


The most important thing we expect from a bank is reliability. But it is not easy to check whether a bank meets this criterion. The American banking system is stable, but there is no guarantee that nothing will happen to your bank. That is why depositors’ interests are protected by the deposit insurance system (DIS). All banks working with individual deposits are part of this system.

Sometimes the bank may be a member of the DIA, but it is not allowed to accept new deposits (the site will indicate this).

That is, you can entrust your money to any bank with a license. If the bank has problems, you will receive your money back, but within the amount of the insurance compensation.

It happens that you received a large amount of money as an inheritance or from the sale of the house, or you received insurance indemnity, social benefits, and so on. In such cases, you will also be paid the amount of the deposit, but only if the money was on the account no earlier than three months before the revocation of the bank’s license.

If a bank has problems

If the bank has problems, you will receive your money back, but within the amount of the insurance compensation. You may have received a large amount of money in an inheritance or from the sale of a house, or you have received insurance benefits, social security benefits, and so on. In such cases, you will also be paid the amount of the deposit, but only if the money was on the account no earlier than three months before the revocation of the bank’s license.

You should pay attention to the stability of the bank. If you plan to keep in accounts and deposits in the same bank an amount exceeding the insurance indemnity, examine this issue. If you have accumulated more, it is safer to keep your money in different banks.

You are going to open a business account. The deposit insurance system protects only the money of individual entrepreneurs and small businesses (the company must be listed in the unified register of small and medium-sized businesses).

Are you sure that you need exactly a bank?


You want to use the services of only one bank, and disruptions in its work, even for one or two days, will cause you great inconvenience.

If you have one of these cases, you should study the financial state of the bank. Bank statements appear But professionals do it quite well – the relevant information can easily be found on the websites of rating agencies included in the regulator’s register, as well as in financial and economic publications.

The main thing is to compare what is written in different sources, rather than focus on any one source. Even experts may not know everything, and can sometimes be wrong. It should be borne in mind that the financial condition of the bank is not static and can change.

You can find out for yourself whether your chosen bank is doing well if you have some banking analysis skills.

If you are still determined to make sense of the situation, then first of all pay attention to the following indicators:

Balance sheet profit.

This is one of the main indicators that allow you to judge whether the organization is doing well. If the bank made a loss rather than a profit over a period, it’s not critical. Perhaps it was experiencing temporary difficulties. But if a bank is consistently unprofitable, this is a bad sign. The best case is when the bank shows a profit year after year.

Bank Assets


This is the capital that the bank has invested to make a profit. The main types of assets are loans issued, investments in securities and precious metals, money in accounts with other banks, and property. Choose a bank whose assets are growing or at least stable.

Don’t forget about the quality of service.

  • Try to assess the quality of service. Read reviews on the Internet, ask your friends who use the services of the bank. Are they satisfied with the service?
  • Carefully study the site of the bank. Does it have all the necessary information, is it easy to find answers to your questions?
  • Call the bank’s hotline. Check how long you will have to wait for an answer.
  • Go to a bank branch and assess how they work with clients. For example, you can pay a receipt or ask the manager about a service you are interested in.

Today you have learned quite a bit of information regarding banks. In the process of writing this article I also learned a lot. I hope my article has taught you how to choose the right bank.