1. Look at the bank's Veribanc rating which assesses it based on the six CAMELS factors: Capital strength, Asset quality, Management ability, Earnings sufficiency, Liquidity, and Sensitivity to market risk. The strongest banks will have a green rating and three stars.
2. Make sure the bank is FDIC insured, meaning depositors are protected in case the bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
3. Is the bank offering competitive rates? Log on to www.bankrate.com and print out the current rates for the product you are considering to help you make a determination.
4. Determine how long the bank has been in business. If it has been around a long time, this will offer confirmation that the institution has been able to survive multiple downturns in the economy.
5. Find out if the bank charges monthly service fees, if you are required to keep a minimum balance and what happens if you fall below the minimum.
6. Look into how the bank handles deposits. Because there is no branch to visit, determine how long you'll have to wait for checks to clear before you can access your money.
7. Find out how many withdrawals you can you make in a given month. Some banks impose strict limits that may be unacceptable to you.
Tuesday, April 29, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment