Three Key Factors to Evaluate Before Selecting Your New Bank

Evaluating a bank can seem tough, but there are really just three key things to look at before choosing a new one. Since banking began in 1865, more than 17,300 banks have failed. To avoid putting money into banks that might struggle, it’s best to focus on those with efficient operations and good risk management.

The first thing to check is the bank’s lowest yearly return on equity since 2008. If this figure is negative, it’s a big warning sign, and long-term investors might want to steer clear of that bank.