What are your best tips when shopping for a new account?

It’s helpful to have a checklist when shopping for a new banking relationship. Here are some of the questions we encourage you to take into consideration as you make your choices:

Interest Rates #

• Find out not only what the interest rate is now, but also whether or not the bank can change it once the account is established.
• Does the bank pay different interest rates based on how much you have in the account? How it is calculated?
• Compounded interest is when you’re paid interest on both your principal and your earned interest. Be sure to ask when the interest starts being compounded.
• Annual percentage yield is the interest you earn over the course of a year, which is different from the monthly interest. Ask what the annual percentage yield is.
• Find out what the minimum balance requirement is before you start earning interest.
• Ask when you start earning interest: when you deposit a check, or when the check is actually credited to the institution? This sounds like a small issue, but it can make a difference over time.

Fees #

• Will you pay a flat per-month fee? If so, what is the amount?
• Is there a penalty fee for dropping below a minimum balance, and how much is it?
• Is there a charge for each deposit or withdrawal per month, and how much are those charges?
• Ask about ATM fees: are there fees for making deposits or withdrawals, and how do these fees vary if you use an ATM owned by the bank?
• Is there is a fee for bill payment by phone or online?

Additional questions: #

• Will you be charged for each check you write?
• Will your fees be reduced if you have multiple accounts?
• Will the fees be waived if you use direct deposit?
• Is there a fee for receiving canceled checks?
• Is there a fee for balance inquiries?
• Is there a fee for closing an account soon after it’s opened?
• What about bounced check charges?

Limitations #

• Is there a dollar amount limit for withdrawals, or to the frequency of withdrawals?
• Ask if you will still receive interest due to you, if you close an account before the interest is credited.
• How long does it take for checks to clear, and how long do you have to wait to withdraw the funds you’ve deposited to your account?

CDs #

• What is the term (time period during which you may not withdraw your funds without penalty) of your account?
• If the account renews automatically, ask if there is a grace period during which you can withdraw your funds after your previous term has expired.