The top 4 things to consider when choosing a bank
Key takeaways
When choosing a bank, consider fees, interest rates, accessibility, and account types.
Choose a bank with account types that cater to your needs, such as high-yield savings accounts, money market accounts, CDs, and international accounts.
Small business owners should look for banks that offer business checking accounts, merchant services, and business credit cards.
Choosing the right bank is an important decision that can greatly affect your financial well-being. Whether you're managing personal finances, running a small business, or looking for commercial lending solutions, it's essential to find a bank that aligns with your financial goals.
This guide offers valuable insights on how to choose a bank that best suits your needs. We'll cover four key factors to guide you in making the right decision.
1. Fees or charges
When choosing a bank for an average consumer, understanding the fee structure is crucial. Banks often charge various fees that can impact your finances over time. Some common fees include:
- Monthly maintenance fees: These are recurring charges for maintaining your account. Some banks waive these fees if you maintain a minimum balance or meet specific transaction requirements.
- ATM fees: These are charged when you use an ATM that's not part of your bank's network.
- Overdraft fees: These fees are triggered when you overdraw your account. In a move to protect consumers, the CFPB has proposed a rule aimed at closing the overdraft loophole and requiring banks to be more transparent about overdraft costs.¹
- Other fees: Banks might also charge for paper statements, wire transfers, stop payment orders, and other services.
It's important to compare fees across different banks before making your decision. Opting for a bank with lower or no fees can lead to substantial savings in the long run. You can also consider supplementing your bank account with high-yield savings accounts or certificates of deposit through the Raisin platform, which have no fees and just $1 minimum deposits.
2. Interest rates
Interest rates play a pivotal role in your financial journey, impacting both your savings and borrowing activities. When choosing a bank, understanding the interest rate landscape is crucial, particularly when considering commercial loans or maximizing your savings.
Savings accounts and checking accounts
Higher interest rates on savings and checking accounts allow your money to grow faster. While traditional checking accounts may offer minimal interest, high-yield savings accounts can provide significantly better returns, helping your savings accumulate over time.
Loans
Interest rates on loans determine the cost of borrowing, whether you're looking for a personal loan or a commercial loan. For instance, you may wonder how to get the best rate for a personal loan while business owners may wonder "How should I choose a bank for a commercial loan?” It often boils down to securing the most competitive interest rate.
A competitive rate can translate to significant savings over the loan term. It's essential to compare interest rates across different banks and negotiate favorable terms to minimize borrowing costs.
In essence, higher interest rates on savings and checking accounts benefit savers by accelerating the growth of their funds and benefit borrowers by reducing the overall cost of their loans. Prioritizing banks that offer competitive interest rates can be a strategic move for individuals, businesses, and corporations alike.
3. Accessibility and convenience
When wondering what qualities you should be looking for when choosing a bank, easy access to your accounts and services should be high on your list. The ability to manage your finances seamlessly, whether you're at home, at work, or on the go, can significantly enhance your banking experience.
Online banking and mobile apps
Comprehensive online banking platforms and user-friendly mobile apps allow you to check balances, transfer funds, pay bills, and even deposit checks remotely, eliminating the need for frequent branch visits.
Branch locations and ATM networks
While digital banking is gaining prominence, physical branches and ATMs remain essential for cash withdrawals, deposits, and in-person assistance. Consider a bank with conveniently located branches and a widespread ATM network, especially if you prefer face-to-face interactions or frequently handle cash.
4. Account types and features
Different financial goals necessitate different banking solutions. A well-rounded bank offers a variety of account types and features to cater to the diverse needs of its customers that go beyond basic checking and savings accounts. Understanding these options empowers you to select the ones that best align with your financial objectives.
- High-yield savings accounts: These accounts offer significantly higher interest rates than traditional savings accounts, allowing your money to grow faster while still maintaining liquidity.
- Money market accounts: Combining elements of checking and savings accounts, money market accounts provide competitive interest rates and limited check-writing capabilities, making them suitable for managing short-term savings while earning interest.
- Certificates of deposit (CDs): For those willing to commit funds for a specific period, CD accounts offer fixed interest rates that are typically higher than those of savings accounts. They provide a predictable return on investment and can be laddered to create a diversified portfolio with varying maturity dates.
- International accounts: For individuals with global financial interests, international accounts facilitate transactions in multiple currencies, enabling seamless management of assets across borders.
By carefully evaluating the features offered by different banks, you can tailor your banking experience to your specific needs and preferences.
How to choose a bank for your small business
The factors mentioned above can also apply to businesses, but small business owners have unique financial needs that require specialized banking solutions.
Here are some specific tools and services to consider:
Business checking accounts
These accounts facilitate day-to-day business transactions, enabling you to deposit revenue, pay expenses, and manage cash flow efficiently. Look for accounts with low or no monthly fees, high transaction limits, and convenient online banking features.
Merchant services
Accepting credit and debit card payments is essential for most businesses today. Banks offer merchant services that enable you to process card transactions securely and efficiently, often with competitive processing fees.
Business credit cards
Business credit cards can help manage expenses, track spending, and build credit history for your business. Look for cards with rewards programs or cash back offers that align with your business needs.
Your path to financial success
Choosing the right bank is a critical step towards achieving your financial goals, whether you're an individual, a small business owner, or a corporation. By carefully considering these factors and specialized services, you can establish a banking relationship that empowers you to manage your finances effectively and achieve long-term success.
Ready to take control of your finances and make informed decisions about your banking needs? Explore our banking hub at Raisin. Our guides are packed with all of the banking tips and information you need to make better financial decisions.
Sources
¹https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-close-bank-overdraft-loophole-that-costs-americans-billions-each-year-in-junk-fees/
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
© 2026 Raisin SE. All rights reserved.
The Raisin name and logo are trademarks of Raisin SE. All other trademarks, logos, marks, and brand names are the property of their respective owners.
*APY means Annual Percentage Yield. APY is accurate as of April 27, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.