How To Find A Better Bank
 By Patrick L. Wynne

Are you fed up with the fees and impersonal service you get from your bank? Are you fuming about the fact that big banks may have received billions of dollars in federal bailout funds?

Then it might be time to start looking for an alternative. The good news is that you have lots of banking options. Read on if you want to find a better bank.

Banking Alternatives
Two primary alternatives to large super-regional banks are community banks and credit unions.

As the name suggests, community banks are small, regional institutions centered around the communities they serve. Think of them as the “Cheers” of banking: When you walk in, everybody knows your name.

A credit union is a financial institution that is owned and controlled by its members. These institutions are operated for the purpose of providing basic financial services to their members, including reasonably priced credit. They are not-for-profit cooperatives usually operated by volunteer boards and, unlike banks, do not answer to public shareholders.

For most consumers, there is very little (if any) trade off in switching to a community bank or credit union, since they offer the same standard financial services and conveniences as big banks. This generally includes:

• Checking and savings accounts
• Consumer and small-business loans
• Credit cards
• Retirement accounts (like IRAs)
• Online banking

The biggest drawback might be less convenience.

Because they are smaller, community banks and credit unions usually offer fewer branch locations and ATMs than big banks. So if you travel frequently and need access to widely dispersed no-fee ATMs, these smaller institutions might not be the best choice for you.

Note that credit unions serve a defined field of membership that is identified in its charter. That membership might include affiliations such as an employer, school, church or other organization. Or membership may be limited to a particular geographic area (like a city or county).

Finding A Community Bank Or Credit Union
For help in finding a credit union that you can join, visit the Credit Union National Association (CUNA) online at www.creditunion.coop or visit www.culookup.com. Or call CUNA at 800-358-5710.

There are a number of resources that can help you find a new bank. Here are a few:

• FindABetterBank.com
• MoveYourMoney.info
• MoneySupermarket.com

Banking Safely
Given the volatility in the financial services industry over the past couple of years, it’s important to check out new banks and credit unions carefully to make sure they’re financially sound.

The Federal Deposit Insurance Corporation (is a good place to start. The FDIC’s Institution Directory provides detailed information on every FDIC-insured bank in the country.

Also visit BankRate.com, where you can check the latest ratings of all U.S. banks and credit unions. Bankrate has created a simple star rating system that makes it easy to evaluate the current financial status of any financial institution you may be considering.

Questions To Ask
After you identify several banks and/or credit unions that might fit your needs, get down to specifics.

Get answers to these and other questions to help minimize the fees and costs of banking:

• How much do ATM transactions cost?
• Do you have to maintain a minimum balance to avoid monthly fees?
• Does the institution offer free checks?
• How much are overdraft fees

(Posted June 2010)

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