Where you store your money can have a big impact on your finances — we’ve got expert tips to help you come out on top.
A bank is a bank is a bank…right? Not exactly. In fact, there are almost 5,000 banks to choose from in the U.S., and they’re not all created equal. It might be tempting to keep your money in the same place you’ve had it for decades, but the changing economic landscape means it might be time for you to make a change, too. Banking isn’t one-size-fits-all, and the choices you make about where to keep your money can have substantial consequences for your financial future. But with thousands of banking options at your fingertips, how do you choose one?
With so many banks vying for clients, the customer has an advantage: In this saturated landscape, financial institutions compete for your business by offering exciting perks and complimentary services. But taking the time to compare every option out there would take hours if not years.
To save you some time navigating these money mysteries, we called in an expert: Daniele Andreini, senior vice president and head of marketing, analytics, and product strategy for Capital One’s Retail Bank. He shared five questions to ask to find a bank that’ll meet your needs, so your money can start working for you.
How to Find a Good Bank
What’s most important to me: a physical bank location, or an easy online platform?
The first thing to think about is convenience — and depending on your lifestyle, needs, and where you live, this can vary widely from person to person. “We all want to make life easier,” says Andreini. “So ask yourself, do you prefer to have a bank branch in your area that you can visit in person? Is it more convenient for you to do your banking from your phone or laptop? Or do you want a combination of both?” Your answer to this question will help you significantly narrow down your options.
If you’re looking for a bank that allows you to build personal connections, brick-and-mortar locations offer that personal touch. The downside here is that some of these banks charge more fees, and it may cost you to withdraw money from ATMs they aren’t associated with. Of course, there are exceptions: While Capital One has hundreds of physical branches, thousands of ATMs across the country, and fee-free checking and savings accounts, you can also bank digitally with them if that’s more convenient. On the other hand, some banks have no physical locations — customers bank and transact entirely online. While these banks may require low or no minimum deposits to open an account, it can be more difficult to deposit cash, and you don’t have the option of speaking with a representative in person.
If you’re looking for the best of both worlds, consider a bank that has both physical branches and a strong, reliable online platform. Andreini explains the benefits of this combined approach, available at banks like Capital One: “You can have the best of both worlds because we offer a full-service digital-first environment, but we also have branches and physical locations where you can talk with a real person.”
What many people don’t know is that even if you want the option to bank in person, it doesn’t mean you have to compromise in your online banking experience. “The digital experience has become much easier than it was when it was first introduced,” says Andreini. “Today, you can perform most banking transactions without the need to access a bank branch, but some people want both options.” Capital One offers both online and in-person banking through an app, and they’ve made it possible to deposit checks almost anywhere — simply take a photo on your phone for an easy, safe, and secure digital deposit.
What are my core financial goals and needs?
Maybe you’re looking to open a new checking account, or you need help navigating your payments or loans. Andreini suggests asking yourself exactly what your goals are, and how much you already know about financial planning: “If you’re hoping to learn more about financial strategies, consider a bank that offers financial education and planning resources.”
Some banks, like Capital One, offer workshops and classes to help you understand financial planning, whether you’re a beginner or an expert: “Capital One offers a Money and Life Program, which pairs you with a certified coach to create a personalized action plan to connect your life and money goals,” says Andreini. “You can do this one-on-one, or you can attend group workshops, either remotely or in person.” This coaching is free of charge, and you don’t even have to be a customer — anyone can take advantage of the Money & Life Program.
If you’ve got kids and you’re looking to help them understand the value of money and build credit from a young age, that should also be a consideration when choosing a bank. “At Capital One, we offer kids’ savings accounts, which are built to help kids understand financial language and planning from a young age,” explains Andreini. Parents supervise these accounts and can help kids with financial decisions like monitoring their allowance and considering whether they have enough money to buy something they see in a store. They’ve also got accounts specifically designed for teens, which give them the freedom to send money to friends and pay bills — with parental supervision.
Is my money going to be safe?
Recent news of bank failures has been scary, especially when most of us assumed something like a bank run was a phenomenon of the very distant past. So how can you be sure your money is safe and secure, and that your bank won’t fail? Andreini says the first thing to confirm is that the bank is a member of the Federal Deposit Insurance Corporation (FDIC): “If your bank is a member of the FDIC, it means that no matter what may happen to the bank, your money is insured up to a certain value,” he explains. “At Capital One, deposited funds are insured for up to $250,000 — and twice that, if you have a joint account with another holder.” This insurance is automatically applied when you open a deposit account at FDIC-insured institutions, so you don’t have to pay for it or even think about it.
A second common concern is unauthorized use, which is when someone accesses your account without your permission. Since financial fraud is on the rise, Andreini says before committing to a bank, you should ask how they protect against unauthorized use. “When you’re banking digitally, you want to look for layered protection like facial recognition, fingerprint ID, and real-time alerts that allow you to ‘lock’ a credit or debit card directly from your phone.”
What additional benefits does the bank offer?
There’s nothing better than added perks. Andreini mentions some of Capital One’s perks including access to pre-sale tickets to some of the most exclusive events; rewards and special deals on hotels, flights, and car rentals; and reserved access to dining experiences at hundreds of restaurants across the US. If you’re looking for even more perks, there’s Capital One Shopping, a browser extension that runs in the background of your computer or phone, and automatically looks for deals and discounts when you shop online. Capital One Shopping is designed to find better prices while you shop: When a lower price is found, a pop-up link will tell you where to get a better deal. “This service is free and anyone can use it, not just Capital One customers,” says Andreini. “We’re always looking for creative ways to save you money and bring joy, beyond just helping you open an account.”
Capital One also has over 55 cafes across the country, which are open to anyone — you don’t need to be a customer to enjoy them. You can use Capital One Cafés as quiet places to work or meet with friends. There are also ambassadors at all cafe locations to explain the services that Capital One provides. (And as a bonus, Capital One cardholders get a 50 percent discount on handcrafted drinks at cafes.)
How can I make the most out of my money?
Even when you’re storing it, your money should be working for you. That’s why you’ve got to consider bank account interest rates and the percentage you earn in interest over a year, known as Annual Percentage Yields (APY). The current national average APY on savings is 0.47%, but many institutions offer an even higher APY.
If you’ve got money you don’t need immediate access to, consider opening a certificate of deposit account (CD). These often have higher interest rates than checking or savings accounts, and the APY is locked in for a certain amount of time.
Finally, make sure you don’t get tripped up by bank fees. Some banks, like Capital One, offer accounts that come with no minimums and no fees. No one wants to pay a fee to take out or deposit their own money, but some banks will charge a fee to use a different ATM. At Capital One, customers can use their debit card to withdraw money at over 70,000 fee-free ATMs across the country. If you’re looking to add cash to your account but can’t find an ATM, Capital One customers can add cash directly to their fee-free 360 Checking account at about 16,000 Walgreens and CVS locations nationwide.
There’s a lot to consider when picking a new bank, but there’s also a lot at stake. The most important thing is to find a bank you trust: One that focuses on providing you with simple, interconnected experiences where your credit cards, checking, savings, and other accounts can all be managed seamlessly in-person, in an app, or online. Capital One provides all this and more. You work hard for your money, so choose a bank that’ll work hard for you.
