Choosing a bank is one of the most important money decisions you will make. The right bank can save you hundreds of dollars every year, keep your money safe, and make everyday life easier with a good mobile app. On the other hand, the wrong bank can charge hidden fees1, pay almost no interest, and give you poor service when you need help. That is why understanding What Are Some Of The Things You Should Look For When Selecting The Right Bank matters so much, especially if you live in the United States, Canada, the United Kingdom, Australia, Germany, Singapore, or any other developed country where banking choices are wide. Most people open a bank account in their early 20s and stay with the same bank for many years. A recent study by J.D. Power showed that customers who feel happy with their bank are 40% less likely to switch. So, taking a little time now to learn What Are Some Of The Things You Should Look For When Selecting The Right Bank can bring you peace of mind and extra money for a very long time.source
Why Your Choice of Bank Matters More Than Ever
Banking has changed a lot in the last ten years. Today, you can choose between big traditional banks with branches on every corner, online-only banks that pay higher interest, and credit unions that often have lower fees. Each type has good points and bad points. The best choice depends on how you use money every day. Someone who travels a lot will love a bank with free ATMs all over the world. A person who wants to grow savings fast will pick an online bank with high interest rates. Knowing your own needs is the first step when you ask What Are Some Of The Things You Should Look For When Selecting The Right Bank.
Check the Fees – They Add Up Fast
Fees are often the biggest surprise for new customers. Monthly maintenance fees, ATM fees, overdraft charges, and minimum-balance penalties can eat hundreds of dollars a year. The Consumer Financial Protection Bureau says the average American pays around $150 a year in bank fees, but many people pay much more. Look for banks that offer truly free checking accounts with no minimum balance and no monthly fee. Many online banks and some credit unions give these accounts. Also, ask about overdraft protection. Some banks charge $35 every time you spend more than you have, while others move money from savings for free or simply decline the payment. When you are deciding What Are Some Of The Things You Should Look For When Selecting The Right Bank, always read the fee schedule carefully.source.
Compare Interest Rates on Savings
Interest rates are at their highest level in years in 2025. Top online banks in the US, UK, and Australia now pay over 4-5% APY on high-yield savings accounts. Traditional big banks still pay less than 0.05% in many cases. That difference is huge. If you keep $10,000 in savings, a 5% account earns you $500 a year, while a 0.05% account earns just $5. The same idea works in euros, pounds, or Singapore dollars – online banks almost always pay more. Always compare the Annual Percentage Yield (APY) and not just the headline rate. APY includes compounding, so it shows the real amount you will earn. High interest is one of the top answers when people think about What Are Some Of The Things You Should Look For When Selecting The Right Bank.
Make Sure Your Money Is Safe
Safety should never be an afterthought. In the United States, look for FDIC insurance that protects up to $250,000 per depositor. In the United Kingdom, you want FSCS protection up to £85,000. Canada has CDIC coverage up to C$100,000, and Australia offers a guarantee up to A$250,000. European countries protect up to €100,000 under EU rules. Singapore protects up to S$100,000. Never open an account with a bank that does not have this government-backed insurance. Good banks also offer extra security like two-factor authentication, instant fraud alerts, and the ability to lock your card from the app if it is lost. Strong security is a core part of What Are Some Of The Things You Should Look For When Selecting The Right Bank.
Look at Branch and ATM Access
If you like visiting a branch or using cash often, check how many free ATMs the bank has. Large networks such as Allpoint (55,000+ ATMs) or Co-op mean you can get cash almost anywhere without paying fees. Online banks usually refund all ATM charges worldwide, which is perfect for travellers. People who prefer face-to-face help should pick a bank with branches nearby. However, studies show that more than 70% of customers under 40 never visit a branch and do everything on their phone. Think about your own habits when you consider branch access as part of What Are Some Of The Things You Should Look For When Selecting The Right Bank2.
Test the Mobile App Before You Join
A great banking app saves hours every month. The best apps let you deposit checks by taking a photo, pay friends instantly, set savings goals, and track spending in real time. Look at reviews on the App Store and Google Play. Apps with 4.7 stars or higher are usually excellent. Many banks let you open an account completely online in under ten minutes, so you can test the app before you move all your money.
Customer Service That Actually Helps
When something goes wrong, fast and friendly help makes a huge difference. Read recent reviews on Trustpilot or the Better Business Bureau. Look for banks that offer 24/7 phone support or live chat inside the app. Some newer banks answer questions in seconds through chat, while traditional banks sometimes keep you waiting for days. Good customer service is often overlooked, yet it is a key answer to What Are Some Of The Things You Should Look For When Selecting The Right Bank.
Extra Tools and Rewards That Fit Your Life
Many modern banks give useful extras. Budgeting tools, round-up savings, cash-back on debit card purchases, or credit-building features can add real value. For example, some US banks give 1-3% cash back on every purchase with no annual fee. Others connect directly to accounting software – perfect if you run a small business or side hustle.
Special Tips for Business Owners and Freelancers
Choosing the right bank for business can save hours of paperwork every month. For more ideas on managing money when you run your own business, read our guide on how to manage cash flow in a small business.
How to Compare Banks Quickly
Make a simple list with these columns: monthly fees, savings interest rate, ATM refunds, app rating, and customer service hours. Fill it in for three or four banks that look good. The winner usually becomes obvious in less than fifteen minutes.source
FAQs
What Are Some Of The Things You Should Look For When Selecting The Right Bank?
The most important things are low or no monthly fees, high interest rates on savings, government deposit insurance (FDIC, FSCS, CDIC, etc.), a clean and fast mobile app, wide free ATM access or refunds, and helpful customer service. Matching the bank to your daily habits – whether you visit branches or live completely online – makes a big difference in convenience and cost.
Is an online bank safe and a good choice in 2025?
Yes, top online banks are very safe because they have the same government insurance as traditional banks and often add stronger digital security. They usually pay much higher interest and charge fewer fees, which makes them excellent for most people under 45 who rarely need a branch.
Should I choose a credit union instead of a regular bank?
Credit unions often have lower fees and better loan rates because they are member-owned and not-for-profit. However, their apps and ATM networks can be smaller. If you value personal service and live near branches, a credit union can be perfect.
How often should I review my bank choice?
Check your bank once a year or any time your life changes – new job, moving country, starting a business, or getting married. Interest rates and fees change, and a better option might appear.
Conclusion
Taking time to understand What Are Some Of The Things You Should Look For When Selecting The Right Bank is one of the easiest ways to keep more money in your pocket and feel calm about your finances. Focus on low or zero fees, strong interest rates, government deposit insurance, a great mobile app, and service you can count on3.
References
- Quora Discussion – Most Important Factors When Choosing a Bank: https://www.quora.com/What-are-the-most-important-factors-to-consider-when-choosing-a-bank-for-personal-or-business-accounts ↩︎
- Bountisphere – What to Look for When Selecting the Right Bank: https://bountisphere.com/blog/what-are-some-of-the-things-you-should-look-for-when-selecting-the-right-bank ↩︎
- CoursePivot – Key Factors in Choosing a Bank: https://coursepivot.com/blog/what-are-some-things-to-look-for-when-selecting-the-right-bank/ ↩︎
