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You Can Take Ratings To The Bank

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The Washington Post

The Tampa Tribune

Published: October 5, 2008

WASHINGTON - Deciding on a banking relationship is becoming more complex every day.

Foremost, your deposits should be FDIC-insured. Use Bank Find at www.fdic.gov to discover whether a bank is covered by the FDIC.

Next, decide on whether you want a national, regional or community bank or an Internet-only bank. Each comes with trade-offs. A national bank may provide extensive ATM access but may lack in personal service. A community bank can provide personal service but may be limited in its online capabilities. An Internet-only bank may offer attractive interest rates but have higher ATM fees.

Finally, when possible, meet the bank manager at the branch where most of your banking will take place. Determine the services you will use most often. Understand the fees associated with each service and work with the manager to establish the accounts most appropriate to your needs.

In view of the recent turmoil in the financial sector, the most important thing to look for is a bank that is fiscally sound. You can look up the ratings for any bank at www.bankrate.com/brm and click on "Safe and Sound ratings." Be certain your deposits are fully insured by the FDIC.

Look for competitive interest rates on checking and savings deposits. A bank with an extensive network of ATMs can save you a significant amount over time. Some banks offer cards that can be used free of charge at any ATM in the country.

Banks often waive fees or offer preferential rates to their best customers. So consider consolidating accounts at one bank or using multiple services.

Before selecting a financial institution, evaluate the following criteria:

•Financial soundness. An institution's core capital ratio or net worth ratio (published in its recent financial statements) is an objective indicator of financial soundness.

•Required services and convenience. Prioritize the services you need and then analyze their true costs.

•Quality of customer service. Ask current customers about online transactions, speaking with a manager and the experience during peak business hours at the local office.

•Or try a credit union. Data, including the health of credit unions' deposit insurance fund, capital levels, low balance sheet risk, competitive rates on loans and deposits, and lower fees, show credit unions to be an appropriate, safe choice among financial institutions.

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