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With
banks competing for your business, you now have several choices
and opportunities to “shop around” for the bank that offers
you the products and services that best suit your lifestyle
and financial circumstances.
In today’s fast-paced environment, some people are looking
toward financial institutions that exist solely over the Internet
and have no presence in your local community. It would be
advisable to make sure that you know the web-based financial
institution is legitimate and not a scammer. If you decide
to bank solely via the Internet, you will have the advantage
of added convenience, but will lose:
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Face-to-face contact with a personal
banker who can best explain the services and products that
meet your needs.
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A personal banker who knows you and would
better understand your loan needs.
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You also may need to rely on the mail
to sign important documents, make deposits or conduct other
business.
With a competitive financial market, you probably
receive offers every week inviting you to open a new account.
For example, XYZ Bank will “give” you a “free” computer or
other incentive if you open an account. Before rushing down
to take advantage of this “offer”, consider the following:
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Do you really need
the “free” gift?
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According to a
2005 report from the FDIC, banks are required by law to
report the fair market value of the gift as income. If you
receive items in one year with a total value of more than
$10, that value will also be reported as income and taxed
accordingly.
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Here are some things to consider when choosing
a checking account that is best for you:
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Will you be writing
a lot of checks each month? If so, you need to choose an
account that doesn’t impose fees on the number of checks
you write.
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Do you prefer paying
bills online instead of writing and mailing checks each
month? If so, make sure your bank provides online banking
services.
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Is there a minimum
balance requirement and what is the penalty if your account
drops below that amount?
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Will your account
earn interest?
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What are the bank
fees for overdrafts?
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Does the bank have branch locations near to where you live
or work?
And always remember the
importance of a long-term relationship with your community
banker to make sure you receive the best fees, rates and services
to meet your financial needs!
CONSUMER TIPS is provided as a public
service by the Missouri Independent Bankers Association
AND
Community Bank of the Ozarks
P.O. Box 43
Sunrise Beach, MO 65079
(573) 374-5245
1-800-927-4314
www.cbobanker.com
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