Selecting Your Future Bank: An Informative Guide

Interest rates are really low right now, and as a result, many people are scrambling to find the best rates on bank CDs. But chasing these rates might not always be the best use of your time and energy. Imagine you have $25,000 to invest in a CD. After a lot of effort, you might secure a 1% rate. However, if the current rate is only 0.5%, you’re not missing much. With 1%, you’d earn $250 a year; at 0.5%, it’s $125. The real question is whether it’s worth the time and effort to get that extra 0.5%. If you find a 1% rate easily, go for it. But if it takes hours of effort, it might not be worth the hassle.

Does this mean you shouldn’t care about which bank you choose? Not at all. Service is crucial. Most banks know you don’t have many options for higher rates, but they’re still eager for your business. Make sure they earn it by demanding excellent service. If the staff isn’t professional, take your business elsewhere. Tell your new bank why you’re moving and build a relationship with a personal banker. Explain your expectations and hold them accountable for delivering great service.

Don’t overlook fees either. Don’t be fooled by a fee chart that makes it seem okay for the bank to make money at your expense. If you see fees, ask your personal banker to waive them.

Convenience in banking is really important too. With low-interest rates, your time is worth more than small bank returns. Choose a bank that’s convenient for you, maybe one with a simple online platform. It could be a bank that’s available to talk to you any time you need. Also, ensure one bank covers all your needs, especially if you have a small business or different accounts. Dealing with multiple banks doesn’t make sense and wastes time.

If you’re interested in banks with higher rates and often roll over your funds, consider online banks like CIT Bank—they tend to offer better rates because they have lower costs. However, if you need checking accounts, you might still need to consider local banks even if they offer lower interest.

In the end, think about your whole financial picture before choosing a bank. While interest rates matter, with current low rates, your time is more valuable. Focus on excellent service, low fees, and convenience. Only then should you consider interest rates.

How do you choose your bank? Is interest rate the only thing you consider?