Savings and checking accounts come in more sizes and shapes than jeans -- and you want to make sure you find the right fit. We spoke with some of the top banking and money experts to get the latest on how to be savvy when choosing a bank account. Here are six of their top tips:
Know your options -- and yourself. In general, says Today Show financial editor Jean Chatzky, larger banks offer more ATMs and lower interest rates on savings accounts, while smaller banks might be less convenient but offer lower fees. Meanwhile, online-only banks might be able to offer higher interest rates, but lack the brick-and-mortar presence, and credit unions often offer lower fees but can have more restrictions such as when you can speak to a customer service representative or visit a teller.
"The question you have to ask as a consumer, is, 'How do I use my bank?' " Chatzky says. For example: "Do I care if there's a teller? Do I want to be able to walk in and talk to somebody? How often will I use an ATM, and do I care if there's not one where I live and one where I work?" She recommends the comparison tool findabetterbank.com, which makes it easy to search by ZIP code. Other websites, including bankrate.com and Google Advisor, also offer free customized searches.
Focus on your checking account first. "Your checking account is the centerpiece," says Greg McBride, senior financial analyst at bankrate.com. "You can always have a savings account elsewhere, and then link it to your checking account."
Free checking accounts are still relatively easy to find,
Keep your eyes peeled for letters from your bank. That's how banks let you know about any changes to their policies that will affect your accounts, says "The 10 Commandments of Money" author Liz Pulliam Weston. "Those can be easy to miss, though, so it's not a bad idea to simply call your bank and ask if any new fees are about to apply to your accounts," she says. If new fees are avoidable, such as a charge imposed if your account drops below a minimum balance, perhaps you can put more money into your account or close it altogether.
Don't forget about credit unions. "They are truly local, unlike so many of the other 'too big to fail' banks, and are deeply invested in the communities they serve," says Jude Boudreaux, a certified financial planner in New Orleans.
Consider your travel schedule. If you travel a lot for work and need a bank with branches throughout the country, you probably want to skip the local community bank and go with a big one, even if it means incurring a few more fees, says Farnoosh Torabi, author of "Psych Yourself Rich." On the other hand, if you don't rely much on ATMs, and the local teller can fill all your needs, a local bank or credit union could work better for you. "The bank's customer service may be unavailable after business hours, but in exchange you may face lower fees," she says.
Stay on top of your own account. When special education teacher Danny Kofke, author of "A Simple Book of Financial Wisdom," got hit with a late fee on a credit card payment, he immediately called his bank, a national chain, and explained that he accidentally forgot to pay the bill. The customer service representative immediately agreed to waive the fee, partly because Kofke is a good customer with a strong history of on-time payments and multiple accounts with the bank. "I know I could probably shop around and get better rewards on my credit card, but since we don't have any debt except our mortgage, I find just working with one bank much easier to keep track of," he says.
Chatzky adds that people who bank online tend to look at their accounts four times more often than those who bank the old-fashioned way, and frequent check-ins can help spot any potential identify theft as well as prevent overdrawing an account.
The bottom line: Your banking needs are unique, so take time to think about what's most important to you, then find the bank that offers it. You can probably avoid paying most fees, as long as you stay on top of your account.