Choosing the right bank for you is an important decision. Whereas most people have a certain bank by default, significant benefits are available to those who take the extra step to make an informed choice when it comes to their bank.
One person who has reflected a lot on the upsides, downsides, and services that various banks offer, is Ingeborg Tysse. She lives in Norway and shares her experiences with banks at Bank Erfaringer. She covers the likes of MyBank, Bank2, Svea Bank, as well as other banks that are widely used. Some of them are mostly in Scandinavia, and some, all around the world.
According to Ingeborg, there are a lot of factors that you need to consider when you are looking for a new bank. Some of the most important are:
- What type of services the bank offers
- What type of account you need
- Whether to go for a local bank or a big one that is more remote
What Banking Services Matter Most To You?
Banking services are a must-have for everyone who lives in the modern world (including you). They provide financial security and stability, and they don’t only exist to store your money; they exist to help you manage it well.
There are many different types of banking services, and different banks offer different services. Ingeborg says that this is probably where you will find the most important reasons for what bank to choose in the end. After all, there is not a one-size-fits-all when it comes to banks.
Below are the obvious banking services you should look for first:
- Personal Banking: Personal banking is when you open an account with a bank or credit union to manage your personal finances. This includes checking, savings, and credit card accounts.
- Business Banking: Business banking is when you open an account to manage the finances for your business. This includes checking and savings accounts, loans to fund growth and expansion, and investments in stocks or bonds that will help grow your business further.
- Investment Banking: Investment banking is the process of opening an account with a bank or brokerage firm to invest in securities. For example, if you are interested in investing in stocks, you would open an account with a brokerage firm that specialises in stocks.
Then, there is the question of how the bank offers these services. For example, do they have:
- Budget calculators that make it easy for you to see how much money you spend where?
- Free financial guidance regarding your accounts or mutual fund investments?
- Connections with a brokerage firm that can help manage your mutual and/or pension fund?
Depending on your needs and preferences, Ingeborg suggests that you use these bullet points as a compass for picking the bank that will be right for you in the long term.
Why Choose A Local Bank Instead Of A Big And Remote One?
Many people think that local banks are not as good as the larger, more well-known ones. But this is not true. Local banks can provide many benefits for any business or individual, which you will see below.
The first benefit is that you get a personal relationship with your bank. You don't have to deal with a call centre and can instead talk to someone who knows you and your needs personally. The second benefit is that it's easy to get access to loans and other financial services from a local bank without having to jump through hoops and wait in long lines at the big banks. The third benefit is that these banks are usually much more flexible in their requirements when it comes to checking account balances, credit scores, etc., which means they are more likely to approve your loan application and such things.
Why Choose A Big Bank?
According to an article on The Balance, the biggest banks provide the most convenience to their customers. They have the widest range of services to their customers and an easy-to-use interface that out-competes the smaller, local banks. These are all great reasons to choose a big bank.
It is easier for big banks to offer many services because they have more employees and more branches. Their size also means that they usually have more resources to pool into accessible ATMs where you can take out or insert cash, something that is all the more useful if you’re on vacation in another town in your country. Big banks also have better data security than smaller financial institutions because they can afford to invest in it.
Regardless of whether you choose to go for a local bank or a big bank, the most important thing is that you are happy with your own decision and that you have compelling reasons that are personally meaningful. In the end, it’s your bank account.
