Borrow
How do you evaluate a good bank?
One of the things you need to do before opening your savings account is to evaluate the bank you’ll be entrusting your hard-earned money to.

How do you evaluate a good bank?
One of the things you need to do before opening your savings account is to evaluate the bank you’ll be entrusting your hard-earned money to.

Choosing a financial institution to trust your money with can be overwhelming with all the advertisements and promises. However, evaluating a good bank is necessary to ensure that your money is protected.
Here’s what you need to consider:
Authority and consumer trust
Choose a bank that is recognised by other financial institutions and has gained the trust of consumers.
Don’t simply rely on advertisements and influencer testimonies, read up on reviews from other people who are current or past clients.
Fees and rates
Any interest your money earns is pointless if the bank simply takes it back through fees and charges.
Before opening an account, consider looking through the bank’s website, account opening documents or asking about the fees that may be charged.
Likewise, compare interest rates for similar products among different banks.
Accessibility
Consider how accessible your money is to you – at least for accounts that are not locked in.
Does the bank have branches that are accessible? Will you receive an ATM card or are transactions just over the counter? Does it have a mobile banking platform or a 24 hour customer service hotline?
Think about the different ways you may wish to access your money or bank agents and find a bank that can accommodate your preferred means.
Safety
Only authorised deposit-taking institutions are insured by the government.
Make sure to verify that the bank you’re about to trust your money with is accredited so that you can still recover your savings (or a portion of it) should anything happen to the bank.
Dispute resolution
Some issues may arise while your money is in the bank and, without a proper dispute resolution, you may lose your money.
Consider asking banks how they process and settle client complaints, issues and disputes.
Likewise, you may look for past clients who have made complaints against the bank in online forums and message boards and ask how their issue was handled.
Explore nestegg for more tips on how to evaluate financial services providers and funds.
About the author

About the author


Banking
368k Australians potentially eligible for Westpac class action: Are you one of them?
The Federal Court is set to notify 368,000 Australians that they might be eligible to join a consumer credit class action against the big four bank. ...Read more

Banking
Government introduces royal commission laws
The government is striving to implement a number of the royal commission recommendations in a package that was recently introduced to Parliament. ...Read more

Banking
ANZ cops $10m penalty for wrongful fees
The Federal Court of Australia has found that banking giant ANZ engaged in unconscionable conduct and breached its obligations as a financial services licensee. ...Read more

Banking
How $800m could make banking better
The federal government’s digital business plan to drive Australia’s economic recovery “will make banking faster and easier”, according to an industry group. ...Read more

Banking
How sneaky fees could be costing you hundreds
As many as a quarter of Australians are being stung with unknown, unfair or incorrect banking fees, with the costs adding up during the COVID-19 pandemic, an expert has revealed. ...Read more

Banking
Westpac hit with biggest fine in corporate history
Australian banking and financial services giant Westpac has reached an agreement with AUSTRAC to pay $1.3 billion for breaching anti-money laundering and counter-terrorism financing laws. ...Read more

Banking
6 ways to know you need a new bank
Unhappy with your current bank? Here’s how to know if you need to make a change. ...Read more

Banking
The banks beating the big 4 when it comes to customer satisfaction
Midsize banks are the biggest winners in a new survey of bank customer satisfaction. ...Read more

Banking
368k Australians potentially eligible for Westpac class action: Are you one of them?
The Federal Court is set to notify 368,000 Australians that they might be eligible to join a consumer credit class action against the big four bank. ...Read more

Banking
Government introduces royal commission laws
The government is striving to implement a number of the royal commission recommendations in a package that was recently introduced to Parliament. ...Read more

Banking
ANZ cops $10m penalty for wrongful fees
The Federal Court of Australia has found that banking giant ANZ engaged in unconscionable conduct and breached its obligations as a financial services licensee. ...Read more

Banking
How $800m could make banking better
The federal government’s digital business plan to drive Australia’s economic recovery “will make banking faster and easier”, according to an industry group. ...Read more

Banking
How sneaky fees could be costing you hundreds
As many as a quarter of Australians are being stung with unknown, unfair or incorrect banking fees, with the costs adding up during the COVID-19 pandemic, an expert has revealed. ...Read more

Banking
Westpac hit with biggest fine in corporate history
Australian banking and financial services giant Westpac has reached an agreement with AUSTRAC to pay $1.3 billion for breaching anti-money laundering and counter-terrorism financing laws. ...Read more

Banking
6 ways to know you need a new bank
Unhappy with your current bank? Here’s how to know if you need to make a change. ...Read more

Banking
The banks beating the big 4 when it comes to customer satisfaction
Midsize banks are the biggest winners in a new survey of bank customer satisfaction. ...Read more