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2 – Tuesday, October 31, 2017
How To Guide
Selecting the Right Bank
Finding the right bank can help you protect your hard-earned money while giving your overall financial se- curity an extra boost.
It stands to reason that you should apply the same effort and care to finding the right financial institution that you’d use to earn your money in the first place. Money is one of our society’s stabilizing forces, and con- trolling how your money is handled is one of the chief factors in determin- ing whether your life is easy or hard.
When it comes to banks, the one- size-fits-all rule does not apply. Not all banks provide the same types of financial services and programs, nor do they offer the same returns. While plenty of people use convenieThink about these tips when you begin looking for a bank.
INTEREST RATES AND FEES CHARGED
Banks operate in a competitive mar- ket. They’re constantly competing with other financial service providers to earn your business.
One way banks lure new customers is to offer appealing interest rates. While it’s typical for savings account interest rates to vary widely, a major- ity of institutions make adjustments according to changes in the federal funds rate.
Those little numbers on a bank’s interest rate listing may look insig- nificant, but they add up dramati- cally when applied to large deposits over time. When substantial deposit amounts are involved, a slightly high- er rate can make a big difference.
Banks are also famous for charging fees for particular transactions. For example, a checking account may only allow a certain number of checks to be written each month before a fee is assessed. Sometimes, a mini- mum balance is required to keep the account active.
But there are banks that offer free services, like free checking accounts
and other options. Make sure, though, that the free checking is really free. There may be stipulations such as be- ing required to keep a minimum bal- ance in the account at all times.
Look at a fee schedule to determine if it is acceptable to you.
PERSONAL CONVENIENCE
Convenience will be a significant factor when selecting a bank, and for good reason. Banks with multiple locations in convenient areas are im- portant.
If you travel frequently, make sure your local or regional financial insti- tution is a member of a national net- work.
Also, ask about their online banking policies. Is their website easy to nav- igate and secure? Online banking can be a great way to pay bills and trans- fer money between accounts. OVERDRAFT SAFEGUARDS
Everyone makes mistakes. Acciden- tal overdrafts happen occasionally. Each financial institution has a differ- ent policy about these matters.
Some banks might offer overdraft coverage in the form of a high-inter- est credit line. Other banks charge fees each time an overdraft occurs.
Sometimes, banks provide no cov- erage. Be sure to research overdraft
policies before making a final deci- sion.
INSTITUTIONAL STABILITY
It’s always important to consider a bank’s stability. Before you entrust your money to an institution, check its history and financial condition.
Typically, banks invest deposit- ed funds under a fractional reserve banking system. Any bank with a strong balance sheet should be able to weather any turbulence caused by market corrections.
The majority of banks are insured by the Federal Deposit Insurance Corpo- ration for up to $250,000 per depos- itor. This value can vary depending on the type and number of accounts held by a customer.
Provided you understand and act within these safeguards, your money will likely be safe in a bank. That is not to say that failures are impossible. A solid bank will limit exposure to tox- ic assets that put its balance sheet at risk.
SERVICES YOU NEED
Most banks offer a variety of ser- vices. Whether you need to get a loan or open a checking account, choose a bank that fulfills your needs with the fewest fees. It should offer the maxi- mum conveniences possible.
We’re providing more of what you’ve come to expect from the area’s leading bank: prompt, professional loan decisions and friendly customer service. Whether you need a consumer loan, financing for your business or a residential mortgage, let our team put together a winning game plan for you!
All the bank you’ll ever need. | www.ffb1.com
Pictured, L-R: Adam Tinsley, Consumer Loans, Scott Walker, Sr. VP, Commercial Loans, Trey Clark, Commercial Loans, Brandon Byrd, Consumer Loans,
and Jerry Reibe, Consumer Loans. Seated: Kelly Hines, Mortgage Loans
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