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.
RELATED ARTICLES
About the author
About the author
Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more
Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more
Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more
Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more
Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more
Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more
