Avoid These Common Mistakes When Choosing a Safe Bank for Your Money

I was organizing my college dorm when I got the call. My mom asked me if I'd seen my latest bank statements. I said, "What statements?" To my surprise, my big, safe bank had been charging me $10 monthly for the privilege of keeping my savings account open.

Say what now? Unfortunately, that's just how banks roll.

Your Netflix account doesn't charge you for failing to maintain a monthly movie quota. Amazon doesn't charge you for canceling your Prime account within six months of opening it. But banks charge you minimum balance fees and early cancellation fees.

It never even occurred to me that I'd be charged money for not keeping enough in my savings account. I'd opened an account with Wells Fargo because it seemed like a safe place to put my money. The bank offered me a compelling mix of in-person locations and an established history of not going bankrupt.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 28, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 28, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

But even the biggest, most popular banks have warts. The trick is spotting the ugly before you commit. We've cut through the marketing fluff to make this easier. Here are the common mistakes to avoid when choosing a safe bank for your money.

Avoid opening bank accounts that charge complicated fees

I lost money to Wells Fargo because I didn't understand the fees. I didn't realize I needed to maintain a minimum balance in my savings account. I didn't realize that Wells Fargo would charge me per overdraft, and it did, frequently. There was a lot I didn't know.

The simpler and fewer the fees a bank charges, the easier it is to not lose money. Online banks tend to have simpler fee schedules than brick-and-mortar banks. It's why I switched from my second bank, U.S. Bank, to Chime, which has no minimums or overdraft fees.

Some of the most important fees to watch out for:

• Maintenance and minimum balance fees
• Overdraft and non-sufficient funds fees
• ATM fees

That's not to say that all brick-and-mortar banks are bad. Some of the safest banks in the U.S. charge few fees compared to competitors. For example, Capital One Bank is the ninth biggest bank in the U.S. and charges zero maintenance or minimum balance fees.

Avoid getting swept up by account promos

Right now, you can open a Chase Total Checking® account and set up direct deposits to earn a $300 promotion. It's a fast, easy way to pad your bank balance. You may be tempted to open an account with Chase, especially when I tell you it's one of the best promos out there. (It really is.)

A bank promo is definitely a plus, one worth noting. It's also worth noting that your bank is often with you for years. Wrapped up in that is your bank's fees, customer service, and user experience on desktop and mobile. You don't want to commit to a terrible experience.

Which nice-to-haves are you willing to sacrifice to earn a quick $300? What about must-haves? These are questions worth considering before you browse tempting promo offers.

The longer you stick with a bank, the harder it is to untangle it from your finances. It's fine to keep a promo in mind when you open an account, but be careful of being swept up by one. Check its other features, too. If it leaves important boxes unchecked, it's probably not the bank for you.

Keep it simple

There's no need to whip out an Excel spreadsheet before you pick banks. Even folks with "meh" opinions of their banks typically get along just fine. But you can do better than average by avoiding complicated fees and being reasonable about promos.

A good place to start is with the best checking accounts. You often pair checking with savings accounts, and of the two, checking accounts are more immediately useful. By starting your search with the best of the best, you have a gold standard to compare competitors to.

So keep it simple. Feel free to take your time and shop around. Banks aren't going anywhere. The best of them will continue to offer what you need, when you need it.