I am not a loyal banking customer.

Understandable, I figured, but it didnt stop there.

The other fees started to pile up quickly.

Their overdraft policy, which was so badit eventually made headlines, screwed me over.

This is a pretty common scenario.

Banks venture to sneak in all kinds of hidden fees.

And its good financial behavior to keep a cushion in your account, anyway.

However, you shouldnt have to work around crappy bank policies.

Youre a customer; they should work in your favor.

Online-only banking is becoming an increasingly popular option.

In fact, some banks will basically pay you to have an account with them through different incentives.

Why would I put up with being punished when another bank is willing to reward me instead?

They pay you another $10 if you set up two automatic bill payments with them.

Local banks, credit unions, and online banks are usually more likely to offer free checking.

you might use aweb site like Bankrateto compare bank details and fees.

Customer Service Is Unhelpful

Years later, I left another bank because their customer service was terrible.

They were notoriously difficult to work with if you had issues with your account.

Simple is anothersolid online banking option.

Most banks have live chat support and allow you to keep records of yourconversations with representatives.

Their Online Options Suck

Most banks these days are great about offering online services.

That was the only thing Id researched.

It was a stupid reason, and it came back to bite me later.

Theres more to look for in a bankbesides no fees.

confirm Theyre FDIC Insured

It should go without saying that your bank needs to be FDIC insured.

double-check they dont have a monthly maintenance fee or require a minimum monthly balance.

Or, if they do have a minimum balance requirement, verify youre cool with it.

Thereward might be worth it for you.

Your bank should have an easy overdraft protection policy, too.

Research Transaction Limits

You also want to check the banks transaction limitations.

The Case for Credit Unions

There are plenty of reasons tochoose a credit union over a bank.

Namely, credit unions are not-for-profit, and the customers are actually members and owners.

In fact, many credit unionsoffer switch kits to help you with the process.

Banks dont use your credit report when deciding whether or not to approve you for an account.

They use a separate report called ChexSystems.

The very first step in this background check is usually taking a look at your ChexSystems report.

Other information reported includes security alerts or freezes.

If your banking history is iffy, you might not get approved.

But you still have options.

You canpull the report yourself and dispute any potentially negative items.

you’re able to send a letter to your prospective bank asking them to reconsider.

Bank loyaltydoesnt really pay off.

Image by Nick Criscuolo.