Find Your Best Bank

2. Penalties

Penalty fees include charges for overdrafts or for using an out-of-network ATM. Banks raked in an estimated $15.5 billion in overdraft and nonsufficient funds revenue in 2019, according to the Consumer Financial Protection Bureau.

In the face of CFPB concerns about overdraft fees, some banks have eliminated them altogether. That’s worth asking about. “We can’t necessarily plan for a pandemic or layoffs,” says Rachel Gittleman, financial services outreach manager for the Consumer Federation of America. So make sure that your bank’s fee structure works both for now and for more difficult times, she says. Banks are required to disclose their fees; you can search online for the bank’s name and “fees” to find them on their websites. Then compare different banks’ charges that might affect you.

3. Branches

The older you are, the more likely you are to bank in person. But the number of bank branches in the U.S. has declined for a decade, from more than 85,000 in 2011 to around 72,000 in 2021.

If going to a branch is important to you, consider whether most of your visits are to a few nearby locations or whether you want to be able to bank anywhere in your state, your region or across the country. You can search for the bank’s name and “find a branch or ATM” to see what’s near you. Credit union members can access more than 5,400 ­branches and 30,000 fee-free ATMs nationally through ­CO-OP, a network of credit unions.

Even as the overall number of branches is on the decline, some banks are expanding their networks in certain cities. You can assess a bank’s commitment to your area (or lack thereof) by seeing if it has shut branches recently or instead seems to be investing in the in-store locations, says Gittleman. You might also visit a branch to see what services it offers and to get a sense of how attentive it is to customers.

4. Technology

If in-person banking isn’t a priority or if no bank branches are particularly convenient to where you live, well-designed remote banking technology will make your life easier. Don’t want to travel to a branch to deposit checks? Many banks now have apps that let you make a deposit from your living room; it’s as simple as taking a picture of a check with a phone or tablet. Tired of writing a rent check every month? You may be able to schedule automatic monthly payments. Like keeping a close eye on your bank balance? Get a text notification after every transaction. “Think about how you plan to interact with your bank and make sure that the financial institution that you choose has all of those options available,” says Gittleman. Since it can be difficult to assess a bank’s technology if you don’t already have an account there, your best bet is to ask family and friends what they think of the tech at their banks.

5. Special services

Hate waiting in line? Some banks let customers line up digitally before getting to the branch. Need cash but don’t have your debit card? Some institutions let you withdraw money from an ATM by entering your PIN into a mobile wallet. Banks are also using artificial intelligence to make online chats feel more conversational, says Amanda Swanson, a senior director at Cornerstone Advisors, a banking consulting firm.

Look for special features that address your circumstances, and ask people you know about what services stand out at their bank. People who have lower credit or thin-file credit may have a better chance of being approved for a mortgage or other loan if the bank evaluates cash flow data — instead of pulling a credit report — while reviewing their application. If you have more assets, a bank might offer wealth management services at a reduced cost or an interest rate discount on a mortgage.