2. CHOOSE THE RIGHT BANK

If you're thinking, "That bank right there across the street looks good" or "Citibank, of course," then it's great that you've settled on your ideal bank. But there may be another bank that's only one block further away that is much better suited to your financial needs. Proximity and reputation are excellent factors to help you determine what bank is right for you, but you should really consider all the other advantages of choosing a specific type of bank before forking all of your cash over.

A large chain bank
A small neighborhood bank
An online bank

A large chain bank

Large chain banks offer two main benefits that the others don't: convenience and reputation.

  • Convenience: If you don't know the names Citibank or Chase, we are pleased to welcome you to the planet Earth and inform you that these are monstrously large chain banks. Because there are so many of these banks, they offer the fine advantage of having plenty of ATMs around, in most any country you may travel to.

    The big banks with their deep pockets also try as hard as they can to make it easy for you to access information about your stored money. This means that besides the branches they've got located on every other street of your city, they probably have 24-hour toll free phone service and an online presence. If one Sunday night you are suddenly overwhelmed with the desire to know exactly how much you deposited into your account on a certain day two months ago, just get on the phone and call the bank.

  • Reputation: If you belong to a big-name bank, there is little to absolutely no chance of it folding and leaving you in a bind to find a new bank. So if you're one of those people who don't like change, stick to a bank with a secured place in the banking world.

A small neighborhood bank

Small neighborhood banks have two cozy things going for them: proximity and friendliness.

  • Proximity: Neighborhood banks are by definition located in your neighborhood, making it very easy for you to make a trip to the bank. If you're the sort of person who literally likes to run your errands, this is the bank for you. This is also a great option if you happen to hate Citibank, Chase, or any of those other greedy megabanks.

  • Friendliness: Now we're not going to guarantee that tellers at your local bank will bake you pies, but most people find that employees at their local banks are just plain friendlier than the ones at big, impersonal banks. Small banks don't have the option of blowing off a potential or current customer, so they'll hire tellers who make it their business to smile until their faces hurt. Instead of treating you like an account number, these tellers will treat you like a real person (with an account number).

An online bank

We would get kicked off the web if we didn't mention the growing presence of online banks. Online banks not only allow you to take care of your banking while naked, but they can also offer you special deals.

  • Special Deals: While just about all the large bank chains have revamped their businesses to incorporate an Internet aspect (online applications, online access to your account, etc.), there are some banks that are located purely on the Internet. To woo you, they're offering all sorts of cool deals that involve super-high interest returns on your savings, and 24-hour phone and Internet assistance. If think you're ever going to sign up at an online bank (especially now that the Y2K fiasco - or lack thereof - is behind us), do it soon before they become a dime a dozen and all the special deals disappear.