Features to Look For In Your New Bank Account

6 Features You Need in a Modern Bank Account

When many people open a brand new checking account, they fail to look at the full range of features that they can access. This is unfortunate because technology has changed banking and financial management beyond our wildest dreams. A survey conducted by the Federal Reserve found that almost half of the smartphone owners that had a bank account in 2017 have used mobile banking exclusively in the year prior to the survey. In this article, we will take a closer look at six features that you should have in your new bank account.

1. A Debit Card

Although society has not gone fully cashless yet, it seems to be where the world is heading in the near future. A debit card will allow you to make purchases without carrying cash and you can use it to access an ATM if you absolutely need physical money. The same Federal Reserve survey found that around 30% of consumers now prefer to use a debit card to make payments. When you open a new bank account, check to see if there are associated fees attached to having a debit card because you’re likely to need one.

2. Online Bill Pay

This is a useful feature that every primary modern bank account should have. Most people don’t write checks anymore, data from the Federal Reserve found that those with paper checks hadn’t written one since 2017. Around 75% of banking customers pay their bills online to avoid the hassle of writing a check and mailing it. As an added bonus, it’s easy to automate monthly payments to avoid late payments that could incur a charge. 

3. Mobile and Online Banking

The ubiquitous smartphone has overtaken other mobile devices, such as: tablets, laptops and others. This is understandable, virtually everyone has a smartphone in their pocket, they have become smaller again and this makes them easier to carry. It’s easy to check a bank account balance from a smartphone to understand your current financial situation. This is very important if you’re keen to avoid overdraft fees which are expensive mistakes to make. The Federal Deposit Insurance Corporation (FDIC) found that banks with more than $1 billion in assets can collect over $11.45 billion in overdraft fees and non-sufficient funds. Make sure that your money doesn’t get lost in these fees, if you fully understand the funds that you have on hand, you’re less likely to be caught out.

4. Text and Email Alerts

These alerts are extremely useful when you want to schedule automatic bill payments. Simply set up the alerts on your new bank account to get a heads up when certain actions occur. For example: you can get an alert every time that a new transaction is posted to your bank account or an alert if the account drops below a set threshold. This information is good to have if you’re concerned about ID theft and hacking to gain access to your bank account information. An early warning about fraudulent charges can make all the difference if you find yourself in this situation.

5. Mobile Check Deposit

This can save you the hassle of making an unexpected trip to your physical bank to deposit a check. You simply take a picture of the check with your smartphone camera, tap a few buttons on the screen and the check is automatically deposited to your account. There is no reason to visit the ATM or wait in line for the teller window. This is convenient, but it’s important to bear in mind that some banks will hold checks longer if the deposits are made using a mobile device. 

6. Improved Security

In recent years, ID theft has become a real problem for many people. So, it makes sense that you need a bank account that has improved security measures in place to deal with ID theft and fraudulent transactions. There should be an on/off switch for your debit and credit cards and fraud monitoring to detect unusual account behavior. 

Some Final Thoughts

When it comes to modern banking your primary bank or credit union account should be insured. The FDIC and National Credit Union Administration offer insurance cover up to $250,000 per deposit account. This is not mandated, not every bank or credit union complies with this insurance and you need to make sure that your account does. It’s essential that you protect your money in the event of ID theft or fraud that has bypassed the security measures. When you choose a new bank account, spend some time evaluating your needs. There may be certain services and products that you can take advantage of in your daily life. Focus on account types that mesh with your goals and financial priorities. Place close attention to the fees, certain financial institutions offer low or no fees. It’s always a great idea to avoid paying any fees if you can and this is where online banks come into their own. Many online banks have very low fees or none at all because they don’t need to cover the operating costs of physical branches. They may have no-fee ATM withdrawals for their online bank account card holders. But, it is possible to get caught out with ATM, account maintenance and overdraft fees if you're not paying attention. A study conducted by Bankrate found that the average American overdraft fee is $29.80 per month and that really adds up over time. Adding some overdraft protection to cover purchases that can’t be funded may be worth the investment if this is a regular occurrence.  Accessibility can be overlooked when it comes to modern banking because many transactions take place online on a 24/7 basis. But, there may be times when you need access to a physical branch or an ATM. Does your online bank have at least one physical branch or do they offer certain services via a shared ATM network. Knowing the answer to these questions in advance can save you a lot of hassle later.