I’m a Former Bank Teller: The Top 5 Things People Should Look for in a Bank
Everyone has unique standards and expectations when deciding where to bank. While some people will value finding the highest possible interest rate on a savings account, others will prioritize finding a bank that provides exceptional customer service. This is why GOBankingRates spoke with a former bank teller to find ideal qualities to consider before choosing an account.
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Christopher M. Naghibi, executive vice president and chief operating officer at First Foundation Bank, shared his insights. Naghibi started his career in the banking industry as a bank teller at Wells Fargo before helping to start his own bank in October 2007.
What should people look for in a bank? Here are the top five things to look out for when deciding where to bank.
The Bank Can Handle All of Your Needs
“You want a bank that values your relationship, is accessible and can bank your entire relationship,” Naghibi said. “You don’t want to have accounts at three banks just to be able to get things you need done.”
This is a valid point, because various banks offer different perks. You want to find a bank that can handle all of your financial transactions under one umbrella to help simplify your life. This can include your checking account, mortgage, credit card and retirement account. You already have enough to worry about — you don’t want to check three accounts to make a payment.
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Your Relationship as a Customer Is Valued
“Don’t make the mistake of chasing interest rates,” said Naghibi. “For most people, a CD earning 4.90% versus 5.00% is not a significant enough of earnings on interest to really be worthwhile to move your relationship.”
You may want to find a bank that takes the time to get to know you and help you with your unique banking needs. While switching over your funds to another account that pays a slightly higher interest rate might be tempting, you don’t want to forget about the relationship aspect of banking.
You also want to consider your future banking needs, as you may find yourself applying for a mortgage in the future, so you don’t want to work with a bank that doesn’t know you well just because you wanted to earn a few extra dollars.
You Receive Exceptional Service
“It all starts and ends with service,” Naghibi said. “You’ll find you get this from regional or community banks in a way that is hard to achieve with larger big box banks from my experience.”
You want to look out for a bank known for quality customer service so that you don’t feel helpless regarding financial matters.
Naghibi elaborated, “Focus on how easy it is to get someone on the phone to talk to when you have challenges. You’ll find the longer you are with a bank and the more [integrated] you are into their platform, the better service you get. It may come as a shock to many, but no bank truly does much of anything that is proprietary anymore. The only real value proposition from one bank to another is their service. Intangible as that may be, how you feel is the only variable that really matters.”
Quality customer service is also essential because you’ll want to find the right advisor or assistance for your different life stages, from landing your first job to planning for retirement.
Fees Are Waived
“A lot of banks these days waive third-party ATM fees entirely,” said Naghibi. “You can literally use any ATM in the country and not be charged. Many have low or no-fee accounts you can open. Some will waive deposit account fees, as long as you maintain a certain minimum balance.”
You should look for banks that waive fees and don’t try to nickel-and-dime you with expenses. You work hard for your money, so you want to ensure that you get to keep more of it. You’ll want to review the fees and costs associated with the account. You’ll also want to find a bank that lets you access your funds without hidden fees that could add up.
The Bank Offers Protection for Your Funds
“As long as the bank is FDIC-insured, most people will have more than enough protection of their funds,” said Naghibi.
Proper protection should be standard when you’re choosing a bank account. You’ll want to ensure that all your funds are safe, so you have one less thing to worry about. The FDIC insures funds in deposit accounts up to $250,000 per depositor in each ownership category — single accounts, joint accounts, trusts, etc.
Additional Banking Considerations
“When I was younger, life was different, and I wanted a bank with many ATMs in their network, so I didn’t have to pay fees and cash was readily accessible,” Naghibi said. “Today, much of that has changed, and we are essentially a cashless society able to send money from one place to another with the click of a few buttons. As a result, what you should look for in a bank has changed dramatically in the last two decades.”
As you decide on which bank to go with, you’ll want to note what your priorities are at the moment and how they’ll shift in the coming years. As important as it once was to have a bank on the corner to pull out funds when needed, this may not matter in 2024, when everything has gone digital.
This leaves two final banking considerations:
Figure out your main banking priorities. You should consider what’s important to you in terms of banking — interest rates, customer services, features, etc. — so that you know what you’re searching for.
Try to build a relationship from the start. It’s crucial that you form a relationship with your bank right at the beginning so that expectations are set.
Closing Thoughts
“As you become more and more successful, your banking needs may change,” Naghibi concluded. “If you outgrow a bank, move.”
You must find a bank that matches what you’re looking for, because you want to ensure that you have the proper resources for your financial planning.
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This article originally appeared on GOBankingRates.com: I’m a Former Bank Teller: The Top 5 Things People Should Look for in a Bank
