A bank keeps your money safe and helps you save, borrow, pay for things, and send it from one place to another. It also protects your money from fire, theft and other natural disasters. Banks make money by charging you interest on the money it has saved for you in checking or savings accounts, and by making loans to people and businesses.
In addition to taking in deposits, banks often participate in the financial markets, trading securities and providing financial advice and services. They also earn fees for services such as cashing checks and card transactions. Most banks are profitmaking private enterprises, but some are owned by the government and/or nonprofits.
Choosing the best bank is an important decision that will shape your daily financial life and long-term finances. Most people keep their banking relationship for 17 years, so you should think about how the fees, services and other features work with your lifestyle before making a choice.
Most importantly, look for a bank that is insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). These organizations insure up to $250,000 per depositor in case of bank failure. It is also a good idea to find out whether the bank has a network of ATMs that offer surcharge-free access. This information is typically provided in a list or map on the bank website, linked along the top of its home page. If you plan to use a debit card, it is helpful to know whether the bank is part of a network that offers free ATMs.