3 Tips for Choosing the Right Bank Account in 2023

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It’s an important decision, so make it wisely. 

Whether you’re opening up a bank account for the first time or are looking to make a move from your current bank to a new one, it’s not a decision to just jump into. Sure, you might have dozens of options when it comes to opening a bank account. But that doesn’t mean you have dozens of good options.

While it’s always possible to close a bank account you’re not happy with, even if you’ve only had it open a handful of months, generally speaking, when you open up one of these accounts, you want to be able to stick with it for a while. With that in mind, if you’re going to be choosing a new bank account in 2023, here are three key moves to make along the way.

1. Compare interest rates

Even if you don’t have a whole lot of money to put into a savings account right now, you never know if you might come into extra money at some point in the future. You might snag a raise at work, or start working a side hustle that boosts your income. And if you end up in the fortunate position of having extra money to stick into a savings account, then you’ll want a bank whose interest rates on savings are generous.

Before you open a bank account in 2023, compare interest rates across different physical and online banks. Of course, for the most part, you can expect a higher interest rate with the latter option. Online banks don’t have the same overhead as brick-and-mortar banks. Because of this, they’re commonly able to offer higher interest rates on savings accounts as well as certificates of deposit.

But you may want a physical bank to take advantage of certain services and amenities, like ATM access, notaries, and a safe deposit box to store important documents. And so in that case, you’ll want to research interest rates to make sure you’re looking at a generous payday on your cash.

2. Consider location

You might find a bank that offers a slightly more competitive interest rate on savings accounts than another. But if that bank isn’t located in a convenient spot, then you may want to forgo that slightly higher interest in favor of a bank that’s more accessible to you. This especially holds true if you tend to visit the bank often.

3. Look carefully at fees

Depending on the type of bank account you’re opening, you may be looking at different fees. With a checking account, for example, you could get hit with a fee for letting your balance fall below a certain threshold. Be mindful of fees as you compare your choices and do your best to keep them to a minimum. In fact, ideally, you should aim to find a bank that makes it possible to avoid fees altogether, since that’s money you’re effectively just tossing away.

Choosing a new bank account is a big deal. Employ these tips so you wind up happy with your decision.

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