| Helpful
guide to money market accounts, checking accounts, savings accounts,
certificates of deposit, debit cards, bank accounts, banking
in the US... |
| Tips
for Dealing with a Bank
You are not married to your bank, but you can enjoy a nicer
long-term relationship if you try these tips for obtaining
attractive interest rates, low fees and solid service. There
is always something you can do differently or better to make
you feel more comfortable and more "at home"...and perhaps
save some time and money, too.
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- Ask
yourself, and your bank, if you're getting the best deal
- About once a year, talk to a customer services representative
at your bank to make sure you're signed up for the right
programs to meet your needs. Maybe a simple adjustment to
your banking practices - such as having your paycheck automatically
deposited into your checking account - can get you a higher
interest rate or reduce or eliminate certain service charges.
Perhaps a change in your banking habits will help cut your
fees. Maybe your good track record at the bank will qualify
you for a lower interest rate on a loan or credit card.
Or maybe there is just a new or better bank account that
you did not know about. I asked at my bank how I could get
a better deal on my checking account because I was paying
a minimum balance fee and receiving no interest. I was told
that because I had additional funds in a money market account
I was now eligible for an interest-earning, no-minimum balance
checking account. That is a good deal, but I was not aware
of it until I raised the question.
Every three or four years (if not more often), comparison-shop
to see if you could do significantly better at another bank.
Start by listing the products and services you really use—most
likely checking, ATMs and one or two others. Make a note
of the interest rate, minimum balance requirements and so
on. Then go to your statements for the last year or so and
calculate the fees and penalties you typically pay—for
monthly account maintenance, ATMs, bounced checks, etc.
Now compare your bank with three or four others. You might
discover that you can earn or save hundreds of dollars by
using another bank. Or, better yet, you may find that your
own bank still offers a good value or that it is willing
to make concessions to keep you as a customer. Then there
is little reason to go through the trouble of switching
banks. (If you decide to leave your bank, see If
You Decide to Switch Banks.)
- If
deposit insurance is important to you, make sure your funds
are fully protected
- Be sure that your deposits are in a federally insured
institution. For more details, see Is
My Money Safe?
- Simplify
your life. Your bank can arrange for the "direct deposit"
of your pay and benefit checks and other regular income.
Most experts agree that direct deposit is safer and more
convenient than paper checks. There are no delays in getting
funds deposited because checks are not lost in the mail,
forgotten at home or waiting for you to return from vacation.
As mentioned previously, you might even get a break on your
checking account if your paycheck is deposited electronically.
You also can have your bank automatically make some of your
regular payments, such as your mortgage, health insurance
premiums, utility bills and investments in a mutual fund.
That can be an easy, economical alternative to writing and
mailing a lot of checks each month. Also think about doing
other banking the high-tech way, such as withdrawing money
from ATMs instead of standing in line at the branch or rushing
to get to the branch during banking hours. Consider using
a "debit card" or "check card" to pay for purchases from
your checking account without writing a check. Banking from
home, by phone or computer, also can be a time-saver.
- Get
to know bank employees you can turn to for help. Write
down the names and numbers of employees who, in-person or
over the phone, seem to be especially helpful and knowledgeable.
If possible, become a familiar voice or face to them. Why
go to this trouble? A good teller, branch manager, customer
service representative, loan officer or supervisor can help
get your questions answered and your problems solved. They
may even come to your aid in a financial emergency, especially
if they know you and that you have a good relationship with
the bank.
- Do
not be afraid to complain. No bank employee really enjoys
hearing from a disgruntled customer. But your bank's managers
probably would prefer you bring a problem to their attention
and be given the chance to fix it rather than take your
business elsewhere or tell all your friends about "that
lousy bank." If you do not get satisfaction from a customer
service representative or another employee, consider talking
to a supervisor...or even one of your banker buddies mentioned
in the previous item. And if you are still having problems,
consider contacting the institution's federal regulator.
(For more tips on how to resolve a dispute with your bank,
see If You Have a Complaint
about a Bank.)
- Do
not be afraid to ask for a break. Bounce a check for
the first time ever? Want a copy of an old monthly statement?
Think the fees for your mortgage application are a bit high?
Depending on the circumstances, your bank might be willing
to reduce or waive a fee or penalty, especially if you have
been a good customer and do not have a history as a "repeat
offender." Also consider talking to your banker if you are
having problems repaying your bank loan. Explain the situation
and any unusual circumstances. Many lenders will agree to
temporary or permanent reductions in your loan interest
rate, monthly payment or other charges. Again, it helps
if you have had a clean record in the past.
- Read
your monthly statements. Your bank statements, credit
card bills and other mailings from your bank may not make
for exciting reading, but they can be among the most important
literature you will read. Tucked inside any envelope from
your bank could be your only notice about new fees or penalties
for certain accounts. If you are not aware of these changes,
and you do not notice the higher fees on your next monthly
statements, you could end up paying more for your banking
and not even realize it.
Also
review your bank statement as soon as possible after it
arrives to make sure there are no unauthorized charges.
If you suspect that a thief has used one of your checks
or your credit card, go right to the phone and call the
bank (see Unauthorized
Use of Your Account (What to Do if Your Identity is Stolen).
Under most state laws, you are required to exercise "reasonable
promptness" in examining any bank statement that shows payments
from your account.
How quickly you report a problem with an ATM debit card
could be especially important in limiting your losses. Your
maximum loss is just $50 if you report your ATM debit card
lost or stolen within two business days of discovering the
problem. But if you wait between two and 60 days, you can
be liable for up to $500 of what a thief withdraws. Wait
more than 60 days after receiving a bank statement with
an unauthorized ATM transfer and you may be responsible
for all the money withdrawn. (You are not responsible for
funds withdrawn after you notify the bank that the ATM card
is lost or stolen.)
Another good reason to look at your bank statement as soon
as possible is to make sure you have enough in your checking
account to avoid bounced checks.
- Read
the fine print. Knowing the costs and requirements of
an account before you sign on the dotted line can prevent
a complaint or hassle later. Example: Just because a bank
account is advertised as "free" or "no cost" does not mean
you will never run up a cost. An institution is not allowed
to advertise a "free" checking account if you could be charged
a maintenance or activity fee (such as for going below a
required minimum balance). But your bank can offer a free
account and still impose charges for certain services, such
as check printing, automated teller machines and bounced
checks. Also, ask if an attractive interest rate on a credit
card or a deposit is really just a short-term, introductory
"teaser" rate.
- Keep
good records. Hold on to your receipts for deposits,
ATM withdrawals, credit card charges and other transactions
long enough to confirm that your monthly account statements
are correct. (Later it's OK to toss these pieces of paper
in the trash, but be sure to rip them up enough so that
a thief cannot read or use them.) Also, keep copies of any
contracts or other documents you sign with the bank (loans,
certificates of deposit, etc.), along with any accompanying
materials. If there is ever a dispute or a discrepancy,
you will have those documents to refer back to.
- Use
your bank as an information resource. A good banker
can be an excellent source of advice and information-perhaps
about starting or expanding a business, buying a car or
home, qualifying for a loan or dealing with a debt problem.
He or she also might be able to direct you to good contacts
in other businesses or have excellent reference material
handy. All of this is yet another reason to get to know
the right people at the bank.
Your bank also could have a customer newsletter or a website
that provides useful tips for handling your financial affairs.
Many banks also offer seminars on topics such as saving
for retirement or a child's college education. Add this
information to everything else you learn from your lawyer,
accountant, financial planner, the media and other sources,
and then put it to use when shopping for, or using, financial
services. And anything you can learn from the bank about
your rights and responsibilities as a consumer can help
you avoid misunderstandings and get any problems solved
quickly.
Final
Thoughts. It
is a good idea periodically to shop for and compare financial
services, just as you would any consumer goods. If nothing
else, you will want to know that the rates, fees and services
at your existing bank are at least comparable to what
is out there in the marketplace. You will receive more
satisfaction from your bank when you know the people there
and the services they can provide. Every relationship
has its ups and downs, but with a little effort, you might
just feel more at home with your bank.
 
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