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If you’re looking into opening your first bank account or switching your current checking and/or savings account, you’ll likely have many options and offers to consider. The question is, how do you choose the right bank account?
The best bank for you will depend on factors like your financial needs, priorities, and what you value most in day-to-day banking. Whether you’re more comfortable with a small local financial institution or prefer the expansive resources of a national bank, this list of key things to look for in a bank will help you make the right choice.
Key Points
• When choosing a bank, consider factors like security, bank fees, interest rates, location, ease of deposit, and digital banking capabilities.
• Other important considerations include minimum requirements, availability of funds, customer service, investment account options, and perks offered by the bank.
• Security is crucial, so ensure the bank is insured by the FDIC or NCUA.
• Bank fees can eat into your savings, so be aware of ATM charges, maintenance fees, and overdraft protection fees.
• Interest rates vary significantly across institutions, so compare APYs and consider online banks, which typically offer higher rates on savings and checking accounts.
Importance of Finding a Good Bank
Knowing how to choose the right bank account matters more than most people realize, and the potential benefits go well beyond a place to store money:
• A bank account provides a home base for the money you earn.
• It can provide security, knowing that your cash is safe and you have a team of professionals to assist you with your money management.
• It can pay you interest on your funds so your cash grows.
• It can help you build your financial security and literacy.
• A good bank account can grow with you through different life stages, and if your needs change, switching is always an option.
• It can offer you additional benefits, like a cash back debit card or a lower mortgage rate.
What to Look for in a Bank
There are thousands of banking options in the United States. So how do you narrow the choices down to the one bank that’s right for you? There’s no right or wrong answer; it’s all about finding what works best for you.
Consider the following 12 factors that can help you find the right bank account for your current needs. Creating a comparison chart in a spreadsheet lets you track the factors that matter most as you research your options. Then use the process of elimination to find your perfect financial institution match.
Sure, it can be smart to take friends’ suggestions into consideration, but the final choice should be the one that is all about you and your needs… not what works for someone else or just what has a good marketing gimmick. Here are key things to consider when choosing a bank.
1. Security
Whether you choose to put your money in an online bank vs. a traditional bank vs. a credit union, it’s vital to make sure your funds are safe. Check to make sure any bank you’re considering is insured by the Federal Deposit Insurance Corporation (FDIC) or if you’re looking at a credit union, that it is insured by the National Credit Union Administration (NCUA).
In the very rare event of a bank or credit union closure, either FDIC or NCUA would cover your deposits up to the insurance limits. You would be covered for up to at least the standard limit of $250,000 per depositor, per insured institution, for each account ownership category.
2. Bank Fees
Fees can eat away at your deposits and the savings you’re trying to build. Some banks charge minimal or no account fees, but others have multiple charges that can add up fast. Common examples include ATM charges, monthly maintenance fees, and overdraft fees.
What are ATM fees? They can run a few dollars per out-of-network withdrawal and sometimes even more. And how about overdraft? These often range from $30 to $35, and while they’re a good way to avoid negative balances, they can cost you hundreds of dollars if you fall behind.
Returned deposits, foreign transactions, low balances, lost cards, and sometimes even interacting with a human can also incur fees. If you want to avoid monthly maintenance fees and more, be sure to read through the terms and conditions carefully so you aren’t unpleasantly surprised. You may just want to choose an account that’s fee-free instead.
3. Interest Rates
While some banks might still offer the standard low interest rates on savings accounts, it doesn’t mean you’re stuck with that.
When choosing the right bank account for your needs, keep in mind: online-only banks typically have lower overhead than traditional brick-and-mortar banks, so they often pass those savings on to customers through annual percentage yields (APYs) that are many times higher than the national average. Some online banks also offer high-yield checking accounts.
Increase your savings
with a limited-time APY boost.*
4. Location
Consider whether you’re the kind of person who likes to visit brick-and-mortar branches often. If you do, you may want to bank with a financial institution that has physical locations close to your home, your workplace, or both.
You might also want to check out if your bank has ATMs or a partner network of no-fee machines near you and the neighborhoods where you typically spend time. This can be important for avoiding ATM fees, such as non-network fees and ATM operator fees. These fees can add up to a few dollars or more per transaction, which accumulates quickly if you use ATMs regularly.
5. Ease of Deposit
Along the same lines, you may want to consider how easy it is to deposit funds in a particular financial institution. Many banks offer the benefit of mobile deposit, which allows you to add a check to your account by snapping a photo with your cell phone and uploading it. Check to see what’s available.
Also, if you are looking at online banks, suss out how you might deposit cash, if that’s something you frequently do, and make sure it’s a convenient process for you.
6. Digital Banking
Building on the topic of mobile deposits, it’s likely worth your while to check out a potential bank’s app and online services. Are they easy to navigate? Do they offer the features you’re most likely to use? Comparing a couple of financial institutions’ user experiences can reveal important nuances.
See if you can download a demo or find one on YouTube. Ratings and reviews can also be a great way to find out other customers’ experiences — the good, the bad and the ugly — as opposed to trusting a commercial to be honest with you.
Linking to an outside bank account can help you lower overdraft fees.
For instance: Can you activate push alerts for low balances, or can you link your account to another financial institution? (Life hack: Linking to an outside bank account may help you lower overdraft fees — you’ll still get charged if your bank has to pull from the external account, but it’s typically less than if you didn’t have any other account to pull from at all.)
7. Minimum Requirements
Explore whether your potential bank has a minimum deposit and minimum account balance requirement. If so, that means you must initially put in a certain amount of cash to open your account or to start it and earn a certain APY. Then, with minimum balance requirements, if you dip below a given level, you’ll likely pay a monthly account charge.
With online banks, you may not face a minimum opening deposit or balance requirement, but earning the top APY often depends on conditions like maintaining a certain balance, making a set number of debit card transactions per month, or setting up direct deposit. Read the details when considering a bank.
8. Availability of Funds
Few people like waiting for funds to clear, so it’s worth comparing how quickly different banks make deposits available before opening an account. Some banks may offer early paycheck access, for instance, for qualifying accounts.
9. Customer Service
Here’s another dimension to consider when choosing a bank: What kind of customer service do they offer and when? If you are the type of person who likes to interact in-person, you may prefer a traditional bank with branches.
But even if that isn’t a big plus for you, also consider the availability of support by phone and chat during non-business hours. What if you have a pressing financial problem at 9 AM on a Sunday? Would help be there for you?
10. Investment Account Options
If you’re looking for more than just checking and savings, consider a bank that also has investment account options. Keeping your checking, savings, and investments in one place simplifies transfers, deposits, and automatic saving.
11. Perks
Some banks may offer perks that appeal to you, so see what’s out there. For instance, some banks may offer a cash bonus when you set up direct deposit, while others provide cash back on everyday purchases. Still others may offer educational events to boost financial literacy or might provide special passes that allow clients to visit local cultural institutions for free.
12. Your Banking History
One last factor to consider when choosing a bank: if your financial history has a few rough patches, find out whether a bank may consider your application. For instance, some banks may scrutinize your banking history. If you have enough overdrafts in your history or other issues, they may not approve your account application. Or you might need to open what’s known as a second chance checking account until you prove that you’re a reliable client. It’s wise to consider this as you go bank shopping.
The Takeaway
Choosing the right bank depends on your needs and financial goals. In general, you’ll want to look for low (or no) fees, competitive interest rates, and convenient access, whether through local branches, ATMs, or online banking.
Also consider your personal banking preferences. For example, if you want to have the option of meeting with bank staff in person, you might choose a bank or credit union with nearby branches. If, on the other hand, you prioritize digital convenience and user-friendly interfaces, you might consider an online bank. Either way, be sure to compare your options, read reviews, and choose a bank that aligns with your lifestyle and financial priorities.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What should I do if a bank does not have what I am looking for?
If a bank doesn’t have the features you are looking for, it’s wise to shop around. There are thousands of banks and credit unions in America, and one or more are likely to suit your needs.
What are some banking red flags?
Banking red flags will vary depending on what your needs are. For instance, is that enticing annual percentage yield (APY) offered just a promotional rate that will drop considerably lower in a short period of time? Do you notice that your bank’s ATM network is getting smaller? Focus on the most important features you’re looking for and read the fine print to prevent disappointment and dissatisfaction.
What is the most important thing to look for in a bank?
When opening your first account or switching banks, the most important factors to look for are interest rates, fees, and convenience, along with any additional features the bank offers, such as budgeting tools, cash back rewards, or competitive mortgage rates.
Are bank account sign-up rewards worth it?
Yes, they can be. Bank account sign-up rewards can be a great way to boost your balance right away. For instance, top online banks may offer a cash bonus for opening an account or setting up qualifying direct deposits. However, it’s important to make sure any bank you’re considering aligns with your everyday needs and overall goals.
How does online bank vs traditional bank safety compare?
When evaluating online bank vs traditional bank safety, both are secure options. Opening a bank account at an online institution insured by the Federal Deposit Insurance Corporation will carry the same standard FDIC insurance as a brick-and-mortar branch in the event of a bank failure, ensuring your money is protected while you enjoy modern digital security features. Standard FDIC insurance covers up to at least $250,000 per depositor, per insured bank, per ownership category.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet. We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/. *Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
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