Dave Ramsey says to consider these two key issues when choosing a bank

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Read this before deciding who to bank with.

Key Point

• When choosing a bank, you should carefully consider your options.
• Financial expert Dave Ramsey advises what to look for.
• Ramsey suggests that there are two criteria that really matter, such as the type of bank you prefer.

When you open a bank account, you are making a big decision. This account will be interacting dozens of times a month. Perhaps because it is where salaries are deposited and where cash is received and bills are paid. That’s why choosing the right bank is so important.

Easier said than done, though. There are dozens of different financial institutions, each offering their own bank accounts with their own strengths and weaknesses. To make the decision easier, financial expert Dave Ramsey, in particular, he recommends considering focusing on two key issues.

Here are the most important things Dave Ramsey considers when choosing a bank:

In our bank selection guide, Ramsay Solutions On his blog, Ramsey lists various things that can distinguish one bank account from another.

• We offer different types of accounts such as checking accounts, savings accounts and money market accounts.
• interest rate paid on money deposited in a bank
• Fees charged by your bank, including minimum balance fees
• number of ATMs and branches so that you can easily access your money without paying fees for using ATMs of other banks
• How easy it is to work with banks
• Customer service
• bank security

However, it can be overwhelming to focus on all of this. As such, he also offers guidance to simplify the decision. “What you really need to narrow down to when choosing a bank is 1) what kind of bank you want and he 2) the features that are most important to you.” Ramsay Solutions blog status.

How to focus on these two elements

Ramsay is correct that the type of bank matters. This is because the type of bank narrows down the financial institutions you want to cooperate with. There are three main options for this type of bank: traditional banks, online banks and credit unions.

“With traditional banks, you have the choice of either a large national bank or a smaller community option,” says Ramsey. “Honestly, unless you like being treated like an anonymous, faceless account number, there is no benefit to the big, name-brand banks. You can serve and get to know the people, who are handling your money.”

Online banking, on the other hand, is the newer alternative and involves less human interaction, warns Ramsey, but online banks tend to charge lower fees because they have less overhead.

Finally, because credit unions are member-owned nonprofits, they tend to focus on customer service and offer perks like paying higher interest rates on money. , you must be a member to participate, and there may be a small number of ATMs available without fees.

Once you have chosen the type of bank you prefer, you can decide what else is most important from Ramsey’s initial list. For example, you may feel that minimizing your charges is your absolute top priority so you don’t waste money. Or maybe you’re more interested in the interest-free and fee-free ATM access they offer.

Once you’ve determined which of these criteria affect your well-being with your financial institution the most, you can compare their features first and choose the best online bank, traditional bank, or credit union. This way, you should end up with a bank that will satisfy you in the long run.