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Choosing the right bank isn’t just a one-time financial decision—it’s a long-term commitment that can shape your daily life and financial future. On average, people stay with the same bank for 17 years. That’s nearly two decades of fees, services, and interactions that can either simplify your life or leave you frustrated. In 2022, only 9.7% of people switched banks, the lowest rate in almost a decade. This guide is here to clarify the process and help you make a choice you’ll feel great about for years to come.
Whether you’re opening your first account, considering a switch, or simply evaluating your options, this guide will give you the tools to make a confident, informed decision. Your bank should be more than just a place to stash your cash. It should support your goals, adapt to your needs, and even save you money. Don’t settle for a bank that doesn’t work for you—let’s find you one that does.
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1. Understand different types of bank accounts
The foundation of any banking decision starts with understanding the types of accounts available and what they offer. Each account type serves a unique purpose, so knowing the basics can help you match your needs to the right options.
- Checking Accounts: A checking account is a convenient way to manage everyday finances, giving you easy access to your money through debit cards, online bill pay, and mobile banking. Some accounts even earn interest and offer perks like free checks—such as our 50+ Interest Checking. When selecting the right checking account, look for features like low fees, overdraft protection, and ATM access to get the most value and streamline your banking experience.
- Savings Accounts, Money Market Accounts, and Certificate of Deposits (CDs): When it comes to growing your wealth, savings accounts, money market accounts, and certificate of deposits (CDs) are key players. Savings accounts provide a secure place to set aside money while earning interest, making them ideal for short- to medium-term goals. Money Markets offer a balance between savings and checking, typically providing higher interest rates than traditional savings accounts while allowing limited check writing and withdrawals. Certificates of Deposit, also known as CDs, on the other hand, offer even higher interest rates in exchange for locking in your funds for a set period. Each option plays a valuable role in building a financial safety net and saving for major expenses.
- Health Savings Accounts (HSAs): A Health Savings Account (HSA) is a specialized savings tool designed to help you cover medical expenses while maximizing tax benefits. Available to those with high-deductible health plans, HSAs allow you to set aside pre-tax dollars for qualified healthcare costs. Unlike traditional savings accounts, HSAs offer unique advantages, including tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. Plus, any unused funds roll over each year, making HSAs a smart way to plan for both short-term medical needs and long-term healthcare expenses in retirement.
Take the time to explore these account types and see how they align with your financial goals. Ready to find the best fit? Browse our options for checking accounts, savings accounts, money markets and CDs, and Health Savings Accounts (HSAs) on our website or visit one of our bank locations.
2. Assess your banking needs
Think about your financial habits. Do you prefer digital banking, or do you want a physical bank location to visit? Do you make frequent cash withdrawals, or are mobile deposits more important? The right bank should align with your everyday needs—not the other way around.
By clarifying your needs, you can focus on banks and accounts that align with your lifestyle and financial goals.
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3. Evaluate fees & charges
Fees can add up quickly, so it’s crucial to understand what you might be charged and how to avoid unnecessary costs. Common fees include maintenance fees, overdraft charges, and ATM fees. These can vary significantly from bank to bank, so pay attention to the fine print.
Many banks offer ways to reduce or waive fees, such as maintaining a minimum balance or setting up direct deposit. If you frequently withdraw cash, using a fee-free ATM network, like the Privileged Status ATM network that Peoples Bank is part of, can help you save money.
4. Consider interest rates & account yields
For savings accounts and CDs, interest rates are a major factor. A higher rate means your money grows faster over time, so it’s worth shopping around to find the best deals. Even a small difference in rates can have a big impact on your savings in the long run.
When comparing options, think about your savings goals. If you’re saving for the short term, a Money Market account might be ideal. For long-term goals, a CD with a competitive rate could be a better fit. Check out our section on Savings and CDs for more details on maximizing your returns.
5. Investigate lending options
If you’re planning to take out a loan, whether for a home, car, or other expense, the right bank can make a big difference. Look for institutions that offer competitive interest rates and personalized loan services. Some banks provide discounts for existing customers, so it’s worth exploring the benefits of consolidating your accounts.
Be sure to compare loan terms and fees, and don’t be afraid to ask questions. A good bank will help you understand your options and find a solution tailored to your needs. For more guidance, see our section on mortgage loan options.
6. Examine accessibility & convenience
Convenience is key when choosing a bank. Consider how easy it will be to access your money and manage your accounts. Are bank locations and ATMs located near you? Does the bank offer robust online and mobile banking services?
A user-friendly app with features like mobile check deposit, bill pay, and secure messaging can make a world of difference. If you value face-to-face interactions, look for banks with a strong local presence. By prioritizing accessibility, you’ll ensure your banking experience is as smooth and hassle-free as possible.
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7. Review customer service & support
Customer service can make or break your banking experience. Look for banks with a reputation for responsive, knowledgeable support. Features like telephone customer service, including emergency 24/7 support for issues like lost or stolen debit cards, can make it easier to resolve issues and get the help you need. An after-hours Customer Care Center is also beneficial for assistance with your account, debit card, and online banking inquiries after-hours.
Reading reviews and asking for recommendations can give you a sense of a bank’s commitment to its customers, and stopping by a bank location to experience their level of service before opening an account is a good test. A good bank should make you feel valued and supported, no matter your goals or account size.
8. Investigate security measures & fraud protection
Your money’s safety is non-negotiable. Ensure the bank you choose is FDIC-insured. Additionally, look for robust fraud prevention tools, such as real-time transaction alerts and secure authentication methods.
Some banks offer identity theft protection services or partner with fraud prevention programs like the Fraud Center. Be proactive by learning how to spot scams and protect yourself from fraudulent offers. For tips, check out our guides on ID TheftSmart and identifying scams.
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9. Align with ethical & community values
If you value supporting businesses that align with your ethics, research banks that invest in community development or sustainability initiatives. Many banks now prioritize social responsibility, offering programs that reflect their commitment to making a positive impact in the communities where they operate. Choosing a bank that shares your values can add a meaningful dimension to your financial relationship.
Finding the right banking partner
Choosing the right bank isn’t just about where you deposit your money, it’s about finding a financial partner that empowers your journey, supports your goals, and simplifies your financial life. Whether you’re looking to manage daily transactions, grow your savings, or secure a loan, every detail matters. By taking the time to research, compare, and reflect on what truly matters to you, you’ll set yourself up for long-term financial success.
Ready to experience banking built around you? Visit one of our 10 convenient locations in Northwest Iowa, Southwest Minnesota, and Southeast South Dakota, or explore our services online to see how we can support your financial future.