Financial Institution: Definition and What to Look For

The definition of a financial institution typically describes an establishment that completes and facilitates monetary transactions, such as loans, mortgages, and deposits. Financial institutions are a place where consumers can effectively manage earnings and develop financial footing. Consumers can make an informed choice when choosing a bank to keep their money by knowing the core features of financial institutions.

What to Look for in a Financial Institution

Financial institutions facilitate some of life’s biggest events. When choosing a place to keep your money, it is important to make sure the bank meets certain criteria. Here are some key features to look for when you select a bank:

  • Online Banking — The convenience of being able to access your bank accounts from anywhere isn’t something you should overlook. Look for a bank that offers online banking, as well as mobile banking and tablet banking.
  • High Yield Accounts — High yield checking and savings accounts are a great way to get more for your money. If earning interest is important to you, choose a bank that offers high yield options and competitive rates.
  • Accessible ATMs — When you’re on the go you need to have access to cash as you need it. That is why choosing a bank with accessible ATMs and reasonable ATM fees is important.
  • Great Customer Service — When you have a question about your account, you want to speak with a bank representative that is friendly and helpful. A great bank will have friendly representatives ready to help you in any way possible.  
  • Reasonable Fees — Some banks charge multiple fees — such as ATM fees, withdrawal fees, and monthly maintenance fees — just for using their services. Check to see if the fees your bank charges sound reasonable, or if they provide ways to avoid fees altogether.
  • FDIC Insurance — You work hard to earn your money, so you want to make sure it is safe at the bank you choose. Look for banks that are members of the Federal Deposit Insurance Corporation (FDIC). The FDIC will insure the money in your deposit accounts up to a certain amount.

These Features and More From First Bank*

First Bank strives to provide you with these key features and more. We offer digital banking options, financial expertise, excellent customer service, and flexible investment options, making us the ideal bank to partner with during life’s biggest decisions. Our branches extend throughout North and South Carolina. Contact us today to schedule a consultation with one of our financial advisors.


*Member FDIC

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Sources:

Investopedia: http://www.investopedia.com/terms/f/financialinstitution.asp

Investopedia: http://www.investopedia.com/terms/a/apy.asp

Investopedia: http://www.investopedia.com/terms/f/fdic-insured-account.asp