Do you Know Your Banking Basics?

With all the banks and credit unions as well as a growing number of other banking options to choose from, how do you choose which is best for you?

Type of Bank

Benefits

Disadvantages

 Commercial Bank
  • Full range of services (including online)
  • Many branches with ATMs
  • High fees
  • Less personal service
 Credit Union
  • Low fees
  • You have a say in setting policy
  • Need to meet membership requirements
  • Limited access to ATMs
 Savings and Loan
  • Lower fees than commercial banks
  • Personal service
  • Some weekend hours
  • Fewer branches than commercial banks
  • Limited ATM access
 Virtual Bank
  • Higher interest on deposits
  • Banking at your own convenience
  • No personal contact
  • Mail non electronic deposits
  • Fees to use ATM
 Brokerage Firm, Mutual Fund, or Insurance Company
  • Low cost or free checking
  • May provide loans against investment balances
  • May require high minimum balances
  • High fees

Most of these institutions offer the same basic services; the key things to consider when you make your choice are the costs of banking, the hours and locations most convenient for you, and customer service.

Source: Morris, A Woman’s Guide to Personal Finance