1: Consider Interest Rates

When it comes to getting the most out of any financial product, interest rates matter. In many cases, interest rates will serve as a kind of barometer regarding how well suited the bank account is for your personal financial situation. The higher the interest rate on an account is, the more likely it is that you'll be able to make use of those funds in the future.

If you have a steady source of income or are working on growing your savings, finding an account with a high interest rate is important. When interest rates are higher, there's a better chance that you can use your savings to enhance the lifestyle that you've worked so hard to build for yourself and your family.

2: Check Out Associated Fees

One of the ways that banks make money is by charging fees associated with using their products. These fees are supposed to increase revenue without impacting profits too much because not everyone will be charged them. The more common bank accounts, like checking or savings accounts, often don't come with any fees at all. However, other types of bank accounts may charge monthly service fees in addition to other costs.

Before signing up for any bank account, make sure that you're aware of all associated fees. Some are necessary in order to maintain the account while others are simply designed to increase revenue. Fees can add up quickly, so it's important that you research them before opening an account with a new bank or credit union.

3: Think About Your Monthly Billing Cycle

Another way that banks make money is by charging customers different amounts depending on when they make their monthly debit purchases. Banks typically offer customers who use physical locations to make their transactions the chance to avoid additional charges if they pay their bills in full each month or close their accounts before incurring any penalties. Those who aren't able to meet these requirements should consider whether a bank account is right for them.

4: See if There Are Any Hidden Fees

Finally, it's helpful to think about hidden fees associated with bank accounts and their usage. For example, some banks offer accounts that come with unlimited access to ATMs and the ability to avoid ATM fees at all times. However, these same accounts might actually charge customers more in other ways or decrease interest rates based on the amount of money that you're allowed to withdraw during a billing cycle.

Here are some questions you can ask yourself when considering:

• How much do I need to deposit every month? 
• What happens if I don't meet any of the requirements for certain types of bank accounts? 
• How easy is it to withdraw money from a bank without incurring additional fees?
  
  

In many cases, hidden fees are designed to offset the need for higher interest rates or monthly service charges. However, that doesn't mean that you'll be able to avoid them completely. Before finding and signing up for a new bank account, make sure that you understand all associated costs and what's required of you in order to avoid those costs altogether.

Everyone wants their daily banking needs to be as hassle-free as possible. That's why Better Penny believes that checking and savings accounts should include more than just low minimum deposit requirements and no hidden fees -- they should also provide great interest rates on deposits! With an innovative online checking and savings account designed to help you save and grow your money.

Conclusion

It's important to be mindful of the different ways that banks make money in order to understand if a particular account is right for you. Sometimes, bank accounts come with associated fees or higher interest rates, so it's crucial that you're aware of what to expect before signing up. 

Additionally, it's helpful to think about your monthly billing cycle and how that might impact your ability to use a certain type of bank account. Finally, always be sure to ask questions about hidden fees before opening an account - you don't want any surprises down the road!