5 questions to determine if you’re getting the most out of your bank

How do you make sure you are getting everything the bank has to offer? Whether you are looking for a new financial institution or want to get more out of your current Knowing the overall value is important.

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Answer these questions to determine if you’re getting the most out of your bank.

What can you expect from your product or service?

Jacqui Kearns, Chief Welfare Officer at Affinity Federal Credit Union, uses examples of savings accounts such as checks, savings accounts, and certificates of deposit. Do I have to proactively contact my bank or credit union to get the best rate, or will the institution automatically give me the best possible rate?

Kearns said to think about overall rewards, not just rates. As a customer or member of a financial institution, you need to know what your true reward looks like.

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Do you offer high yield savings accounts?

With interest rates skyrocketing over the past year, this is an important question customers ask their banks. Kurt Heinemann, financial planner at Vision Casting Financial Planning, said one strategic way to keep up with inflation is to ensure cash is kept in high-yielding savings accounts. It says.

“These accounts typically have a yield of 3.5% to 4% today,” said Heineman. “See if you have one of these accounts with your bank and if you can open one to take advantage of the rising interest rate environment.”

How flexible are you about loan payments?

This is a concern for many bank customers who are feeling the effects of rising interest rates. Many individuals are still paying off their year-end and New Year debts, and interest rates on adjustable loans have risen. Kearns said the fact that these loans are most often tied to the prime rate means many people will be borrowing more money each month, which can help them understand how to budget. It means that it is necessary.

As a result, Kearns said financial institutions need to act as true partners they can rely on when they are feeling the impact of rising interest rates. there is.

“Remember,” Mr. Kearns said.

What are my CD terms?

If you have the CD, Kearns recommends asking about automatic updates.

Will the CD automatically reset to the lower rate after the period? If not, try to get the best available rate.

“You have to make money on every dollar, not just high balances,” Kearns said.

How can I make money with my own money?

This question goes even deeper than asking about special deals and promotions that are currently available. I need to know what happens after that.

Kearns recommends looking into products offered by credit unions and banks. Do they pay you or themselves first? If the interest rate on your savings product is low, or the interest rate on your loan is high, or your fees are high, the answer is that they are paying themselves before you.

Aim to partner with a financial institution that has your best interests in mind.

Kearns said:

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