ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Understanding Finance

Tips For Choosing a Good Bank & Staying out of Debt

Updated on July 7, 2011

Staying out of debt, and safe keeping of your money

When it comes to understanding finances and staying out of debt, one of the number one things to do is have a good bank and bank account. They can safely store your hard earned money and make it work for you. Most people think of a bank as the safest place to store your money. Ever since the government created the FDIC, or Federal Deposit Insurance Corporation, it is safer than ever to store your funds there. This was due to the banking disasters and depression that followed the stock market crash of 1929. What the FDIC does, is to guarantee each bank depositor against potential losses. These losses could be up to 100,000 should another bank failure occur.

When choosing a bank, you want to consider several things. The main things to consider are the cost, level of service to its patrons, and convenience. Feeling confident in depositing your money into your bank is a great thing, and can help in getting out of debt or even preventing debt in the first place. It is a way to encourage the opposite as well, savings! The idea is to spend less than you earn, and save the rest. Even if you earn only a very little bit of interest say in a savings account, its still something and is definitely safe!

Bank Basics

Most people get a bank account for a checking account and perhaps a savings account. The checking account is great for handling your everyday financial needs. Many banks have other added benefits as well. Some banks offer a direct deposit option, where your paycheck gets directly deposited right into your account. I have always loved using this option when it is available. It saves a trip to the bank, and you have access to your funds as soon as possible. It can be deposited into the account of your choice usually.

Some banks offer bank cards so you can access the ATM machines even when the bank is closed. I like the options of a debit/credit card as well. A credit card linked to your bank account can have lots of benefits. Often these accounts include a line of credit that you can use in the case of an emergency.

Automatic Transfers Whether for your investments, or for use in paying bills, having the option to transfer funds can be very helpful.

Overdraft protection This is something worth having, even if you are pretty sure you will never need it. By having a back up plan if your funds should be short, you can save a lot of embarrassment and extra fees. Many bank credit cards have an overdraft option. If your checking account gets too low, it draws from your credit card. Very easy, almost too easy.

Reading the fine print, and asking any questions is always helpful and can help you become aware of something you maybe didn't know was part of the account you are setting up. I would ask about any and all fees, late charges, and charges for anything extra like too many withdrawals from particular accounts.

What you need

If you are ready to take the plunge from moving the "money under the mattress", and into a bank account, have a few things handy. You will want to take the money you are going to deposit, your photo identification, and your social security number. Often they need proof of some bill like an electric bill to verify your current address. I don't mind these extra precautions, because I know they are being careful and that is something you want in a place that is holding your money.

For your money to deposit, they will take cash, checks and money orders usually. There is almost always a minimum amount. Passports and driver's licenses are perfect for photo identification. Often there is a signature card to sign, so as to have our signature on file to use for banking services. This is another measure to protect you.

Banks will often have options for investing as well. You can usually invest in mutual funds, annuities and sometimes brokerage accounts. A good bank will often have free financial planning available. If they can help you and others become more financially successful then they can be more successful as well. Ask around to the people you trust, what banks they have come to trust and rely on over the years.

Writing this takes me back to when I was a young girl, getting my first savings account, with the little pass book. My grandmother took me, and it was a very special day and I was so proud to start saving my money and keeping track of it. Its not a bad idea to find a bank that welcomes this as well for when your own children are old enough to get an account of their own. Its helpful when they have money from a birthday or Christmas to put it away so that it isn't "burning a hole in their pocket". I wouldn't force it, but offer the idea as they get older, and tell them how it benefits them. When it comes to preventing debt, this is a great way to start. Helping the next generation to be wise with their money is a great gift.

Comments

    0 of 8192 characters used
    Post Comment

    • oceansnsunsets profile image
      Author

      Paula 7 years ago from The Midwest, USA

      Thank you for the comment Simone. :)

    • Simone Smith profile image

      Simone Haruko Smith 7 years ago from San Francisco

      Thank you for the tips! Starting with a good bank can make a huge difference :D

    • oceansnsunsets profile image
      Author

      Paula 7 years ago from The Midwest, USA

      Jeanie, I agree that saving more and depositing in banks that have good reputations would help very much. Thank you for your comment.

    • jeanie.stecher profile image

      jeanie.stecher 7 years ago from Seattle

      For me, getting out debt definitely has a lot to do with the choice of finances we are having. If we just know how to manage our finances, then being of debt would be the least of your problem. In fact, if we just know how to deposit our money in a bank of good reputation, then we could be as much save.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)