9 Characteristics of an ideal bank

With so many options for banking these days, it’s vital that you know what’s important to you when you compare bank accounts in Canada. Knowing whether you value unlimited transactions on your account over earning interest, for example, can help you decide which bank and account are best for you.

Here are some factors to consider when deciding on the best place to open a bank account.

1. Banking products

Are you looking for a specific type of account for direct deposit and everyday spending or do you want to also open accounts for savings and to earn interest. You’ll want to look at the products each bank offers to find the one with the products that meet your needs.

2. Incentive programs

With banks competing for clients, many offer special incentives to get new customers. These can range from financial offers to prizes to higher interest rates on savings accounts to fees being waived.

When you look at incentive programs, make sure you understand what you have to do to receive the incentive – often, you have to open an account and take specific actions, such as direct deposit or linking a recurring payment to the account. You won’t get the incentive if you can’t meet the requirements.

Other incentives, such as high-interest rates on savings accounts, might only last for a short time. Research it to find out if it’s worth it for you.

3. Fees

The fee schedule outlines what fees the bank charges for its accounts and when they are charged. Some fees may not apply, and others can be waived in certain circumstances. Take some time to consider how you use bank accounts and whether you can minimize the fees you’ll pay.

4. Customer service record

Regardless of whether a bank is entirely online or has physical locations, most clients want their bank to have a solid customer service track record. This means having access to customer service that is friendly, knowledgeable, and responsive to questions, inquiries, or complaints. Ask people you know and trust about the banks they like using and why they prefer them. Read online reviews as well.

A little research can show you how the bank you’re considering deals with complaints and whether clients feel their concerns have been effectively addressed.

5. Mobile and online banking platforms

If you like the convenience of mobile and online banking, you’ll want to consider how robust their mobile and online banking systems are. Look for banks that invest in technology. Ask people you trust how secure and accessible their bank’s online systems are.

6. Physical locations

If you like seeing bank tellers face to face, you’ll likely prefer a bank with physical locations, ideally in your neighborhood or very close to you. You might also like a bank with many locations across Canada if you travel frequently or find yourself in smaller towns or cities.

7. ATM network

Do you find yourself regularly using ATMs to withdraw money? If so, you’ll want a bank that has a wide ATM network so you can easily access your money. You don’t want to be in a situation where you pay extra by not having easy access to their ATM network.

8. Insurance

Your bank should be federally insured by the CDIC (Canada Deposit Insurance Corporation) that way if something happens to the bank, your money (or at least a good portion of your money) is protected.

9. Their mobile and online banking

If you like the convenience of mobile and online banking, you’ll want to consider how robust their mobile and online banking systems are. Look for banks that invest in technology. Ask people you trust how secure and accessible their bank’s online systems are.

Final thoughts

Once you’ve identified which of the above are important to you, you can figure out which bank will best suit your needs and compare their bank accounts to find the ideal one for you.

Remember, your definition of an ideal bank is not the same as someone else’s, so take your time and conduct some research before committing.