Many students invest time and energy into finding the right car, the right credit card and the right apartment, but many overlook the need to find the bank or credit union that best meets their needs.
"It's good to shop around," JoAnn Pierce, senior member service officer for the Ball State Federal Credit Union, said. "Students can look at credit unions and banks and make their own decisions as to what might work best for them."
Ball State University senior Matt Peterson, who uses the same bank as his parents at home in Fishers, said his parents taught him some ins and outs of searching for a good bank. However, he still feels uneducated about what he would look for if he went bank-searching on his own.
"I don't feel I could go out and just make decisions based on what I know now," he said.
As Peterson prepares to graduate this year, he said knowing what to look for in a bank is important.
"You work hard to earn your money, so you want to make sure it's in a safe, secure place," Peterson said. "You want to find a bank you can build a relationship with."
Bank or credit union
Pierce said students must first decide whether they want services from a bank or credit union. The primary difference between a bank and credit union is that a credit union is owned by its members as instead of stockholders, according to Welcome Credit Union's Web site. In addition, credit unions are not-for-profit, while banks provide services to make a profit, the Web site said.
Credit unions also have limited membership, Pierce said. For example, the Ball State Federal Credit Union is open only to Ball State students, employees, alumni and their relatives. Pierce encourages students to take advantage of the services the credit union offers.
"If you can find the credit union you are eligible for, they really are the best deal," she said. "What we try to do is give members things back like higher dividends on savings and lower interest rates on loans. We try to look after the people that come in."
Even when students leave campus and get a job, being affiliated with the credit union will allow them to continue services such as online banking, direct deposit and ATM and debit cards, Pierce said.
The right services
Whether students decide to become a member of a credit union or a bank, the one thing they need to remember is to look for the right services, Pierce said.
Because banking services vary from one institution to another, students should look for services that best accommodate their needs, Laura Wilson, vice president of communications for the Indiana Bankers Association, said.
"When people go through different phases in life, their banking needs change," Wilson said. "I would encourage college students to talk with bankers to discuss which products and services best match the needs for the students at that time."
According to the American Bankers Association Education Foundation, identifying a "banking personality" will help make shopping for a bank less of a chore.
Consumers must first identify their goal in opening a bank account, whether it be to save money or have a checking account, the foundation said. They should also determine how much money they can keep on deposit every month and how many checks they will write.
Answering such questions will help them figure out how complex or simple an account they need. Packaged or multi-service accounts offer a variety of services for one fee, while no frills accounts offer a minimum number of services at an extra-low price, the foundation said. Other accounts might be designed cafeteria-style: Consumers choose from a variety of services and pay as they go.
Consumers should also find out about the loans a bank offers, especially if they plan to buy a home, car or make another large purchase in the future.
People should look for an institution that is federally insured, meaning their deposits will be government protected up to $100,000, the foundation said.
Overall, consumers should ensure their bank or credit union provides services that meet the demands of their lifestyles, Pierce said.
"You want to go somewhere where they're going to be friendly and helpful," Pierce said.
Customers should take advantage of the fact that banks are willing to speak to prospective customers about the best products for them, Wilson said.
"Bankers are very interested in building communities and relationships with people who live in the community," Wilson said. "I'd like to encourage consumers to think of local bankers as a resource."
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