Opening a New Bank Account? Ask These 6 Questions

Don't be shy about digging for answers.

Opening a bank account is easy. Opening the right bank account takes more effort. What you want and need in a bank account may differ from what someone else wants and needs. That's why asking these six questions before making that first deposit is important.

1. Are you FDIC insured?

The Federal Deposit Insurance Corporation (FDIC) was created as part of President Franklin Roosevelt's New Deal program. Roosevelt became president during the Great Depression when banks closed, and account holders lost large amounts of money.

In response, FDIC was formed to insure account holders against loss. Insured accounts are protected for up to $250,000 by the FDIC, and you know that if the bank fails, your money is still safe.

Not all banks are FDIC insured. You can easily find out by visiting the FDIC's Search for Institutions page.

If you're hoping to join a credit union, it won't carry FDIC insurance. However, they do carry equivalent insurance from an agency called the National Credit Union Administration (NCUA). You can find out if a credit union is insured by visiting this NCUA page.

Speaking of account safety, Sami Womack, Budgeting Coach from ASunnySideUpLife also recommends that those opening a new bank account ask how fraudulent charges are handled. This is vital information to know, in case your account is ever compromised by a scammer.

2. What kind of fees do you charge?

If you're not careful, bank fees can chip away at your hard-earned money. Make it a point to ask about any fees the bank charges. The most common include:

• Account maintenance
• Minimum balance
• Overdraft
• Return deposits
• Money transfers
• ATM usage
• Foreign transactions
• Personal check fees

Once you have a list of fees, you can compare two or more banks.

3. Does your bank offer online banking and a mobile app?

Nearly all banking tasks today can be accomplished using a financial institution's online banking system or mobile app. Whatever needs to be done, from paying bills to making deposits, can be handled through these bank features.

4. What's your current rate on interest-bearing accounts?

If you plan to keep money in savings or a money market account (MMA), it's valuable to know how much interest the bank pays.

5. Where can I find ATMs?

Ideally, a bank or credit union will have enough ATMs scattered around town to help you avoid using a non-network ATM. Get an idea of how far you'll have to travel from your regular haunts to locate an ATM.

6. Do you have a safe deposit box room, and if so, do you have any available boxes?

If you've moved very often, you may have noticed how challenging it's become to score a safe deposit box. Some families hang on to their boxes for decades, and you may have to put your name on a waiting list. This is especially true if you need a particular size. If you can't imagine being without a safe deposit box to store important documents and valuable items, be sure to ask about availability.

Finally, don't underestimate the power of referral. When searching for a new bank, ask your friends and family where they bank and if they're happy with their choices. Find out what they like (and don't like) about their banking experiences. No one you care about will want to steer you in the wrong direction.

Taking time to ask questions before committing to a financial institution is the easiest way to ensure you'll be happy once it becomes your home bank.