Things to consider when choosing a bank account
You may have been told to shop around when looking for a bank account, but it's fairly useless advice if you don't know what to look for. Bank accounts are usually designed to be optimal for a specific purpose, so what can be important to consider when choosing an everyday bank account?
What is the interest rate, and how often is it calculated and paid?
A high rate of interest can provide you with a return on large deposits in your everyday account, but if you don't intend to use the money, you would often be better off siphoning unused money into a high interest account optimised for saving. The high-access nature of everyday bank accounts means you are unlikely to be offered a particularly good interest rate, or else it may only take effect once you have a certain amount of money in your account. This is usually a few thousand dollars, as you are unlikely to withdraw that amount for everyday uses.
If an everyday bank account does offer good interest rates, though, it is worthwhile to find out how often this is calculated and paid, as you can optimise your returns by keeping more money in your account when interest is calculated. Most banks will calculate interest daily to encourage a consistently high level of funds.
How easily can I access my funds?
This question addresses a lot of issues that are important for an everyday bank account. You need to know how many ATM transactions you get for free per month, any online banking capability, benefits for getting a credit card with the account, daily maximum ATM withdrawal amounts and any minimum balance requirements. For everyday use, you want to make sure that you are being offered the best in these aspects of your account. Try to compromise in other areas before compromising on any of these elements that you require to be of a high standard.
Are there any charges?
This doesn't just refer to account keeping charges, as many banks will forego account keeping charges if you have above a certain amount of money in your account. Charges for ATM use in excess of your free monthly allowance can add up if you need to withdraw money often, as can currency exchange charges if you receive deposits from overseas sources. If the bank is providing you with a specialist service, they are probably charging for it, so be sure to ask specifically about any charges.
You may have other needs than those listed above, but this should be a good start when looking for an everyday bank account for you. Please visit our comparison page of everyday bank accounts that we offer.
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