If you need to open a new bank account, it’s important to not just walk into the nearest branch and sign up for an account without understanding the terms and conditions. Here are certain questions you need to ask your bank representative to figure out whether the account is the right choice for you.
What Are The ATM Charges?
ATMs allow you to access the money in your account without needing to visit a bank branch. However, some banks charge you for this feature, which means you could get charged each time you withdraw money from an ATM, especially if the ATM is operated by a different bank.
What Are The Terms Regarding Overdrawing Money?
When you withdraw more money than you have in your account, your bank may cover the overdraft for a certain fee. While it’s recommended that you don’t overdraw your account, ensure that you ask how much the bank will charge you for overdraft protection.
Are There Account Maintenance Fees?
Certain banks charge a monthly or annual fee to maintain your account. You should try to negotiate and lower these charges.
Am I Required To Maintain A Minimum Balance?
When you open a savings account, certain banks will require you to maintain a minimum balance. If your balance goes below this limit, you may be charged a fee. It’s a good idea to inquire if this fee can be waived off.
Is Online Banking Available?
It’s important that the bank allows you to access your account online and through a mobile app. Having access to such features allows you to perform a number of banking tasks from the comfort of your home or when you are on the go.
How Much Interest Can I Earn?
It’s best that you open an account with a bank that offers a competitive interest rate on your deposits.
If you need to open an account, don’t forget to check the rates and terms offered by online banks and credit unions. Given that online banks save on overhead expenses and that credit unions are not-for-profit organizations, they usually offer a higher rate of interest and more flexible terms to their customers.