Top tips for choosing the right bank for you

Ashleigh Pano is a Client Advocate with Gilkison Group.

Choosing a bank is not a one size fits all process. Every individual has a different financial situation, so when making decisions it is best to consider your own personal needs and goals.

By taking the time to evaluate your position, and compare what each bank has to offer, you might be able to boost your savings and make the most of your money. Here are some things to consider when switching banks, or opening a new account:

What kind of account do you need?

Each type of account has its own distinct set of features influenced by its intended use.

You might be saving up for a holiday or new car, or maybe you’re after a new way to manage your money. By identifying your banking needs, you can be more focused in your search.

Some common account types in Australia include:

Everyday transaction accounts: These are primary accounts that allow customers to pay bills, shop and spend. They don’t usually earn any interest, but they can incur a monthly account-servicing fee.
Savings accounts: These are often linked to your everyday account, and are used to store your money and earn interest.
Term deposit: This is a deposit for a set period which often gives access to a higher interest rate.
Offset savings account: These can reduce the interest you pay on your home loan by offsetting the principal amount you borrowed to buy your property

Consider the additional banking services

If you would like to consolidate your finances, you will need to check whether your bank offers all the services you require.

The top products and services to check would be investment options, mortgages, credit, and other loans, such as personal and car loans.

Interest and fees

Two of the most important things to consider are the interest rates and fees associated with the bank you choose. Banks must collect funds from individuals and businesses in order to make loans to borrowers. hese funds come from fees (paid by account holders) and interest (paid by borrowers). When choosing a bank, you will need to ensure that the fees and interest payable are relatively low. Check whether there are any account servicing, transaction, or maintenance fees associated with your account prior to opening. Most banks offer a variety of account types with a range of different fee categories, so be sure to select the combination that works best for you and your funds.

To find out more about which financial institution is best for you, talk to one of our experienced team members.