Question

there are various types of financial institutions offering deposit service. As a banking student discuss 5 factors that will influence your choice of suitable deposit institution

Answer 1

Factors that will influence our choice of a suitable banking institutions are as under-

1) Fees

Review the fees for each type of account . We will compare the fee list of local banks. we will analyse the following facors in this regard-

• Does the bank charge fees to transfer money to another bank?
• Their overdraft fees?
• Does the bank charge annual fee?

2) Cash Limits

we will determine how much money we will able to withdraw from the local ATM. different banks have different withdrawl limits. Some banks can adjust that limit, based on our needs.

3) Online Banking

Another factor which we may consider is if the bank has the option for online banking. We will most likely select an institution which provides us best real time facility.

4) Security

The most crucial factor to consider when choosing the right bank is the level of security provided by it. Is the money safe with the bank? The bank must have fraud prevention techniques.

5) Interest Rates

Different banks offers you different interest rates. The lower the interest rate the better. Be wary of banks that hike their interest rate, Especially if they don’t compensate with appropriate accreditation.

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