Consumer Guide 2021
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How to...
Pick the best local bank
W
hether you’re looking for a new bank or evaluating how well your current banking relationship meets your needs, it’s essential to choose a bank whose cost, convenience and customer service fit your lifestyle. Remember to always look for a bank that is federally insured. Look for “Federal Deposit Insurance Corporation (FDIC)” on doors, teller windows and bank websites. • What is your goal? Is it to save money, maintain a checking account, borrow money or apply for a credit card? • How much money do you keep each month? How many transactions will you make? Some accounts offer a variety of services for one fee, while others include a minimum number of services at an extra-low price. There’s also an option to choose what services you need as pay as you go. Always ask about minimum balance requirements and transaction limits. • Compare fees, service charges and interest rates. Every bank sets its prices for deposit accounts and loans. It pays to shop around. • Learn what kinds of savings products the bank offers. Your savings goals may be for education, a second home or a dream vacation. Many banks provide uninsured investments, such as mutual funds, as well as traditional insured deposit accounts.
10 | Consumer Guide
• Planning to buy a home or car— or something else big? You’ll want to find out about each bank’s loan products. • Shop around for your best credit card. Credit cards have a range of interest rates, rewards programs and terms. The interest rate, fees and grace period will all affect your total cost. • How do you want to bank? You may want a bank that focuses more on digital services like mobile banking or online bill pay. Or, you may want a bank with an extensive branch network you can visit in person. • Do the bank’s hours and locations fit your lifestyle? If you’re focused on a bank you can visit in person, do you prefer one close to home, open on the weekend or near your office? • What is your language preference? If you prefer speaking in a language other than English, consider bringing a family member or friend with you to the bank who can translate. • It’s not just about cost – consider how comfortable you feel with the bank. Ask family or friends about their bank’s reputation for customer service. • Determine if having a local impact on the community is important. Community banks promote community growth. Unlike banks that may take deposits in one state and lend in others, community banks channel most of their loans to the neighborhoods where their depositors live and
work, helping to keep local communities vibrant and growing. Community bankers are also typically deeply involved in local community affairs. They volunteer, serve and give back because they are committed to their communities. Because community banks are themselves small businesses, they understand the needs of small-business owners. Their core concern is lending to small businesses and farms. Community banks are led by local people — neighbors, family, and friends are employed by community banks. Community bankers offer nimble decision-making on business loans because decisions are made locally. Community bankers know their customers and offer a more personal touch. From commercial and small-business loans, and the array of small-business products and services, mobile and online banking, as well as its Rewards Based Kasasa checking and savings accounts, you’ll find everything you need at Newton Federal, who has been the Newton County’s hometown community bank since 1928.
Content from Newton Federal Bank; American Bankers Association
The Covington News | February 2021
