7 Questions to Ask Yourself Before Opening a New Bank Account – The Motley Fool

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by Natasha Gabrielle | Published on Nov. 24, 2022
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Choosing a bank account that works for your needs and goals is the best move.
Check out our picks for best high yield savings accounts
Bank accounts are excellent personal finance tools. If you’re in the market for a new bank account, you want to make sure you’re choosing the right one for your needs. You can do this by considering what you’re looking for in a bank account and comparing accounts. Here are some questions to ask yourself before opening a new bank account.
It’s possible to find no-fee checking accounts and savings accounts. But some banks charge monthly maintenance fees for some of their accounts, and these fees can add up. Research all bank fees before choosing an account, so you don’t waste your hard-earned money.
Some banks set a minimum balance requirement and may waive monthly maintenance fees if you keep enough money in your account each month. It’s not a bad idea to check and see if there are minimum balance requirements before you officially open an account.

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Doing this is especially important if you’re planning to transfer a significant amount of money from your checking account to your savings account on a regular basis. After all, money sitting in your checking account won’t earn interest — but it will if you put it in a savings account.
If you’re focused on meeting big savings goals, you may choose to maintain a smaller checking account balance. But make sure that doing so doesn’t cost you money in the form of fees. The good news is there are bank accounts without minimum balance requirements.
If you’re planning to open a new savings account, you’ll want to know the annual percentage yield (APY) being offered. The APY is the rate at which you’ll earn interest on your savings in a year.
Before choosing a savings account, you should compare rates at different banks. You could boost your earnings potential by opening a bank account with a bank that has a higher APY. Why not spend a little extra time choosing a bank in order to earn as much money as possible?
It’s also important to consider whether you can access your money easily.
If it’s a checking account that you plan to use regularly, you may want to go with a bank that has at least a few branches in your local area. You should also consider the availability of ATMs. Will you be able to take out cash easily when you need it without paying extra fees?
If you’re opening a savings account and plan to let your money sit for a long time or are opening a backup checking account, this question may not apply to you.
Some banks reimburse their customers for out-of-network ATM fees. If your bank doesn’t have in-network ATMs in your community or you want to avoid paying fees when traveling, choosing to open a bank account with a bank that reimburses these fees may be a good idea. Otherwise, you’ll waste money when using an out-of-network ATM to get cash.
You want to feel confident that your bank will treat you well. When looking at bank account options, consider the bank’s reputation with customer service. Many banks have fantastic customer service, but not every bank will go above and beyond when you need help. Choosing a bank that treats you right is essential.
Many people rely on online banking tools to handle their banking affairs. Whether you like to use your bank’s website or mobile app, these virtual tools can offer convenience and keep you better informed about your finances.
Before opening up a new bank account, check to see what online banking tools the bank offers — being able to handle your banking needs easily while on the go is a huge win.
Asking these questions before you open a new bank account can give you a better banking experience. There is a bank account out there that will meet your needs and goals, but you may need to look around and compare several options to find the best fit for you and your money.
Review our list of best checking accounts to learn more.
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you more than 15x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2022.
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APY: 3.25%
APY: 3.00%
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Min. to earn APY: $100
Min. to earn APY: $1
Natasha specializes in credit card and rewards content. Her goal is to encourage more people to experience the world around them while making smart financial choices.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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