One does not simply keep all their money locked up in a safe at home! Banks are where responsible adults keep their money, and it is one of the first lessons you learn in finance management. Banks manage your money, and you can rest assured that it is safe and sound. Moreover, the best banks offer a slew of financial tools that prove indispensable in the different walks of life — planning on buying a new house? The bank will help you with the home mortgage loan; or, thinking of investing extra cash somewhere? The bank offers certificates of deposit with high-interest rates. So, in a nutshell, a bank is the nucleus of your financial world.

With the importance of being an account holder being freshly foregrounded in your mind, the next step is to choose the best bank. There are several esteemed financial institutions out there, but choosing the right one can be a difficult task. The bank you choose must cater to your requirements, so here are some easy tips to arrive at an informed decision.

Deposit insurance : There is a cardinal rule you need to follow when you are looking for the best bank: do not conduct business with a bank or credit union that does not offer deposit insurance to its customers or bear the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) symbol. This insurance offers coverage of $250,000 for your deposits in case the bank fails to protect your money. So, if the bank doesn’t offer deposit insurance to its customers, opening an account there is not a wise choice. So, research the best banks and check whether they offer deposit insurance.

Fees : When it comes to choosing the best bank, the “fee” factor plays a major role. As the fees charged by the bank depend largely on your banking habits, you need to be aware of the various transactions to ensure that you don’t end up paying unnecessary charges. The fees that the bank charges you include the monthly account fees, ATM use fees, overdraft protection fees, late payment fees for loan products, and bounced check fees in case of insufficient funds. Before you choose a bank, ensure that you compare the fees charged for the same services by different banks. Sign the dotted line only if you are comfortable with the fees that the bank charges.

Types of accounts offered : The best banks offer different types of accounts under one roof. The four major types of bank accounts that banks offer are checking accounts, savings accounts, money market accounts, and rewards checking accounts. This ensures that you have options to choose from, and you can choose an account that meets your financial demands. So, opt for a bank that offers multiple options so that in case you change your mind, you won’t have to undergo the painstaking process of looking for a new bank.

Balance requirements : Usually, a majority of banks have minimum balance requirements that eventually convert into fees. The primary types of balance requirements are the average monthly balance, minimum balance, and a minimum amount in the savings account. However, there are certain banks that do not have balance requirements. So, ensure that you look around before you decide on a particular bank.

Interest rates : The best banks offer the best interest rates you can earn on your deposits, which is another prime factor you need to consider while looking for the right bank. Also, if you might apply for a loan in the future, ensure that the bank offers low loan rates.