Choosing a bank may not seem like the most thrilling item on your to-do list.
But when we get it right, it's worth it and our lives are a lot easier.
Think about all you do that involves your bank, whether it's making daily transactions with your debit card or receiving your paycheck through direct deposit. Your auto payments, your mortgage payments — all that would be tough without a bank.
Finding the right fit is especially important for service members who move around a lot.
People who join the military may have had bank accounts before, but if they go through a PCS or deployment, their brick-and-mortar bank might not be as savvy with online or digital banking.
If you're looking for a bank that's right for you, ask yourself the following five questions to help you find the best fit.
- What types of bank accounts do I need?
- How much flexibility do I want?
- How easy is it to get help?
- What about account security?
- Do I want to do business with a company that shares my values?
1. What types of bank accounts do I need?
The products and services banks offer varies. If you're just starting your first job, you may have one simple need: a place to store your money. If that's the case, you're likely looking for checking and savings accounts with no monthly service fees.
But remember that over the course of your life and career, your financial service needs will grow. You'll want a bank that can help you navigate through various life events like applying for a credit card, an auto loan or a mortgage.
Whether it's now or in the future, you may need some of the following offerings:
- Checking account: This is an account that typically gives you a debit card and paper checks. From your checking account, you can schedule one-time or recurring online bill payments. You can also make mobile or ATM deposits, or have your paycheck automatically deposited into your account. If you're active military, you can get paid up to two days early See note 1 if you set up direct deposit with USAA Federal Savings Bank.
- Savings account: This is an account that helps you earn interest while you save money for an emergency fund or future purchase. Savings accounts are helpful for "set and forget" savings, allowing you to earmark a small amount of each paycheck to go directly into your savings account. You can make big progress in saving for goals without even missing the money.
- Credit card: This allows you to buy items on credit. It's a great way to build credit and gives you the ability to expand your buying power while earning rewards or cash back.
- Auto loan: This is money borrowed from the bank to pay for a new or used car, or to refinance for a lower rate. Some banks also offer loans for leisure vehicles, such as a motorcycle, an RV and a boat.
- Mortgage: This is money borrowed from the bank to buy a house. This could include buying your first home, buying an investment property or refinancing to save on your monthly payments or consolidate your debt.
- Personal loan: With this, the bank loans you money that you can use for a variety of purposes, from paying off bills, to renovating or repairing your home to paying for unplanned expenses.
- Certificate of deposit, or CD: This is similar to a savings account, except you have time restrictions on when you can withdraw your money. The bank pays you interest based on how long you leave a lump-sum deposit in an account.
- Youth banking: This can help teach money basics through a checking or savings account for your child. It converts to an adult account when they reach 18 years old.
While some people prefer using multiple banks to avoid keeping all their eggs in one basket, having one bank you trust with several products and services can be much more convenient.
If you can find a bank that offers all the services and flexibility you want, you'll just have to log in one time to manage all your transactions.
2. How much flexibility do I want?
Think about your lifestyle and the dealings you've had with your bank over the past year. Do you prefer to handle financial transactions in person or online? Do you use a mobile app or ATM to make deposits?
Flexibility is a must for many service members, especially if they're deployed or frequently move for PCS orders.
Service members benefit from banking with a military-friendly institution that has a national presence. Online and mobile banking capabilities are important when you're always on the move.
Banks that support digital wallets like Apple Pay™, Google Pay™ and Samsung Pay™ make it easy for service members to make contactless payments while they're traveling or to shop online.
You have instant access to all your accounts through your phone with the USAA Mobile App. Wherever you are, it's easy to:
- Pay your bills. See note 2
- Deposit a check. See note 3
- Find a nearby ATM.
- Send and receive money through Zelle®.
Service members need a bank that allows them to make transactions anytime. They also need the ability to easily transfer money and access an ATM, if that's their preferred method of completing transactions like withdrawals and deposits.
3. How easy is it to get help?
For people who prefer to conduct their transactions face to face, having a relationship with a local banker is high on the priority list. Some like the ease of online transactions, while others prefer a combination of the two.
Even if you'd rather bank online or through a mobile app, there will likely be times you have questions or need to talk to a person.
You want to choose a bank that prioritizes customer service.
But even if a bank claims to offer personalized service, how do you know that's not just lip service?
You can always call the bank and see what kind of customer service you get. How easy is it for you to get in touch with a person? Do they have an online chat feature?
Look for contact information on the bank's website.
4. What about account security?
Even if terms like "biometrics" and "multi-factor authentication" aren't on your radar, they should be of utmost importance for your bank.
Active-duty service members are 76% more likely than other adults to report that an identity thief misused an existing account like a bank account or credit card, according to the Federal Trade CommissionOpens in a New Window. See note 4
When you're searching for a bank, research the features they have in place to protect you. At USAA, we have a Cyber Threat Operations Center that constantly monitors potential online threats.
While USAA uses sophisticated detection processes, we're most effective in fighting fraud when we work together with you.
When you enable multi-factor authentication, you can help us fight fraud.
Federal law limits your liability for unauthorized charges if your credit, ATM or debit card is lost or stolen. Your protection against unauthorized charges depends on the type of card and when you report the loss.
Regardless of the financial institution you choose, be sure to set up and respond to alerts sent by your bank. Monitor your accounts on a regular basis and report suspicious behavior immediately. To learn more about how to protect your accounts and personal information, visit the USAA Security Center.
5. Do I want to do business with a company that shares my values?
Choosing a socially responsible bank is one way you can positively impact your community. That's because these organizations are positioned to be a source for good, depending on how they lend and invest their capital.
If you're concerned about sustainability initiatives, check the bank's commitment to environmental issues. If diversity, equity and inclusion is important to you, research the bank's culture of service and inclusion. What sorts of philanthropic contributions have they made? What are their community or global partnerships?
Do your research to ensure you choose a bank that does the right thing because it's the right thing to do. You can learn more about USAA's efforts on the Corporate Overview page of our website.
Don't forget about terms and conditions.
Once you've narrowed your list, it's time to compare fees, terms and conditions.
Unfortunately, there are some banks that charge fees just to hold your money — or unusually high interest rates for borrowing.
Plus, not all banks offer services like checking accounts with overdraft protection and bill pay with no monthly service fees.
Some may also charge you a service fee if you don't keep a certain amount in the account.
Ask about the "minimum balance requirement." In other words, how much do you have to keep in the account to avoid fees?
What documents do you need to open a bank account?
Now that you've chosen a bank and are ready to open your new account, here are a few things you'll need to knock out the task in one sitting:
- Have a valid, government-issued photo ID, such as a passport, driver's license or military identification. Some banks may require two forms of identification.
- Confirm your full name, address, date of birth, Social Security number and other identifying information.
- Check for an opening balance or initial deposit like $25. The amount can vary depending on your bank.
Consider banking with USAA Federal Savings Bank
See how our banking services can help you reach your goals.