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An agreement with a bank is often an alliance for many years and usually with obligations that you will definitely have to fulfill. That is, choosing a bank is almost like choosing a life partner. But if it is customary to build relationships with partners out of love, then with banks it is necessary to do this by calculation. We will tell you how to choose the right bank.
Prioritize
Before choosing a bank, it is important to decide what you expect from it. Reliability, profitability, availability, quality of service - priorities and combinations of these properties depend on your needs.
In addition, some services may not be found in all banks. If you are a pensioner and want to receive social benefits and a pension on a card, then you can open it only in banks that have an agreement with the Pension Fund.
Or maybe you don't have to go to the bank and other financial instruments are more suitable? For example, if you have an amount that you want to increase, then you can do it in different ways - not only open a deposit, but also buy securities. The annual income on them may be higher, although the risks of losses will also increase.
For information on when you can start investing and what you need for this, read our article “What should a novice investor know?".
Compare offers
You should not conclude an agreement with the first bank that comes across, even if it was advised by your best friend, you liked the advertisement, or so the inner voice suggests. Study the offers of several banks, estimate the cost of services, income on deposits and the quality of service. So you can find the most favorable conditions for you.
Check your license
Fake banks are extremely rare, but still possible. Be sure to make sure that you are really dealing with a bank, especially if it is a financial institution with an unknown name. If she does not have a license from the Bank, then you are scammers.
Explore Accessibility
When choosing a bank, you should carefully study the location of branches and ATMs, the possibilities of online banking and correlate this with your needs.
Think about how often you have to go to a bank branch: maybe its physical accessibility is an important criterion for you. And if you plan to frequently withdraw or deposit cash from the card, then make sure that there are ATMs of this bank in places convenient for you, not far from home or work. So you can replenish your account and withdraw money from the card without commission.
Evaluate whether you are ready, for example, to go to the bank on the other side of the city every month, because there the interest rate on the loan is slightly lower. Or it's easier for you to pay more at the bank near your home, but not go anywhere.
Or maybe you don’t want to waste time at the bank and it’s easier for you to do everything remotely? Then check the bank's online services. See if they are easy to use and if you can pay for the services you need all the time.
Rate the reliability
Perhaps the most important thing we expect from a bank is reliability. But it is not easy to check whether a bank meets this criterion. The banking system is stable, but there is no guarantee that nothing will happen to your bank. Therefore, the interests of depositors are protected, for example, by the deposit insurance system (DIS). All banks working with deposits of individuals are included in this system.
It doesn't hurt to check if the bank of your choice is on the list on the Deposit Insurance Agency (DIA) website. Sometimes a bank can be a participant in CERs, but at the same time it is not allowed to accept new deposits (this will be indicated on the website).
That is, you can entrust your money to any bank with a license. If the bank has problems, your money will be returned to you, but within the insurance compensation amount - 1.4 million rubles.
In some cases, you can count on an increased payment - up to $ 150000. For example, on an escrow account opened for the sale and purchase of real estate or for settlements under agreements for participation in shared construction.
It happens that a large amount was inherited or from the sale of housing, or you received insurance benefits, social benefits, compensation for damage to life, health or property, payments according to court decisions. In such cases, you will also be paid up to $ 150000, but only on condition that the money was in the account no earlier than three months before the bank's license was revoked. For more information on when the increased compensation is due, read the article "How the deposit insurance system works".
Bank stability should be considered with special attention if you:
If you have one of these cases, you should look into the financial condition of the bank. Bank reports are regularly published on the Bank website , but it can be difficult to understand them. But professionals do it well - the relevant information is easy to find on the websites of rating agencies included in the regulator's register, as well as in financial and economic publications..
The main thing is to compare what they write in different sources, and not be guided by any one: even experts may not know everything, and may sometimes be wrong. It should be borne in mind that the financial condition of the bank is not static and can change.
Financial analysts react quickly to significant changes, but drawing conclusions from one opinion is not always the right strategy. If you hear something bad about the bank, do not rush to immediately give up on it. First, check if the source of information is reliable, if there is evidence of his words, how others evaluate the event. For example, the reorganization of a bank is not the best news for its owners and management, but for the bank itself, its clients and their money, it is good news.
You can independently understand whether the selected bank is doing well if you have some banking analysis skills. If you are still determined to understand the situation, then first of all pay attention to the following indicators:
Balance sheet profit
This is one of the main indicators that allows you to judge whether an organization is performing well. If for a certain period the bank received not a profit, but a loss, this is not critical. Perhaps he faced temporary difficulties. But if the bank is consistently unprofitable, this is a bad sign. The best option is when the bank shows profit from year to year.
Bank assets
This is all that the bank has invested its capital (own funds) and depositors' money in to make a profit. The main types of assets are loans issued, investments in securities and precious metals, money in accounts with other banks and the Bank, property (for example, buildings, machinery and equipment). Choose a bank whose assets are growing or at least stable.
Capital adequacy ratio (N1)
This standard shows whether the bank can cover possible financial losses from its investments at its own expense. To calculate the standard N1, first, all the bank's assets are divided into groups according to the level of risk and multiplied by the correction factors. Then the bank's capital is divided by the sum of these risk-weighted assets and multiplied by 100% - and the standard is obtained. N1 must be at least 8%.
Instant liquidity ratio (N2)
This criterion allows you to assess whether the bank is able to cope with the obligations that it must fulfill during the day. For example, can he give money to a client who wants to withdraw it from a current account or close a demand deposit.
Of course, all clients do not come for money at the same time. But in order to calculate the N2 ratio, they estimate the amount of all demand accounts and other obligations that may be presented to the bank. Then the assets that he can turn into cash or non-cash money during the day are summed up (for example, take from the cash desk, sell or withdraw from his accounts in other banks). To get the standard, divide the amount of assets by the amount of liabilities and multiply by 100%. N2 must be at least 15%.
Current liquidity ratio (N3)
This indicator helps to understand whether the bank is able to fulfill the obligations that may be presented to it within the next 30 days. For this standard, the amount of assets that the bank can turn into real money within a month is considered. And divided by the sum of all demand bills and liabilities that are planned or may arise in the next 30 days. Then this figure is multiplied by 100%. N3 must be at least 50%.
If the bank constantly violates the regulations, this may indicate financial problems. But this does not mean that they will necessarily lead to a sad result. Problems are often solved, and the bank continues its work safely.
You should be on your guard if a bank with not very good indicators aggressively advertises its services and offers to open deposits at inflated rates.
Don't forget about the quality of service
Try to assess the quality of the service. Read reviews on the Internet, ask friends who use the bank's services if they are satisfied with the service. Carefully study the bank's website: does it have all the necessary information, is it easy to find answers to your questions. Call the bank's hotline - check how long you will have to wait for a response. It will not be superfluous to go to a bank branch and evaluate how they work with clients, for example, you can pay for a receipt or ask the manager about the service you are interested in.
Carefully study the bank's offer
Before signing a contract for the purchase of any service, carefully study what exactly is offered to you. It is worth signing a contract only if you understand each of its conditions.
What to look for if
I want to open a deposit
If you are looking for a deposit with high interest rates, then be sure to check that the agreement specifies what type of deposit you are opening and how exactly the interest will be calculated.
Sometimes you may be offered investment products - when the money that you give for safekeeping, the bank will invest. Investment income is not guaranteed and you may lose your investment. And although such products inherently have nothing to do with contributions, they may be offered to you under the guise of a contribution. Or even call it an investment in advertising, but with a note that this is an investment.
Specify how you will be charged interest. There are deposits with the so-called "ladder" interest. The term of such deposits is usually divided into several periods, and the interest rate varies from period to period. In advertising, only the highest percentage can be voiced to you.
I want a profitable card
When choosing a card, find out how much you will have to pay for its service and whether it has a cashback (the ability to return part of the money that you spent on purchases when paying with a card) or other bonuses. With their help, you can save money. But soberly assess whether you will make purchases on those conditions under which you are promised high cashback or bonuses. For example, if you rarely fly, it will take a long time to accumulate travel miles.
Do not forget that banks usually charge a commission for transfers to cards of other banks, so you should think in advance where you will transfer money more often. Ask what cards your friends and colleagues have and if they like the service.
I want to take out a loan
When choosing a loan, pay attention to its final cost, how much you will have to pay together with all interest. Check if there are any items in the contract for which you will also have to pay (for example, insurance). Find out if it is possible to refuse such additional points (often the refusal of insurance means that the interest on the loan will be higher, because the bank's risks increase).
Sometimes it is more convenient to take a loan at a bank where you already have an account or deposit: regular customers can be offered more favorable conditions and are more likely to approve a loan.
I want to receive my pension on the card
If you are a pensioner, you can receive your pension and social benefits at a bank that has an agreement with the Pension Fund. You can find out whether there is such an agreement either in the bank itself. If there is an agreement, you open an account and write an application with the details.
Prioritize
Before choosing a bank, it is important to decide what you expect from it. Reliability, profitability, availability, quality of service - priorities and combinations of these properties depend on your needs.
In addition, some services may not be found in all banks. If you are a pensioner and want to receive social benefits and a pension on a card, then you can open it only in banks that have an agreement with the Pension Fund.
Or maybe you don't have to go to the bank and other financial instruments are more suitable? For example, if you have an amount that you want to increase, then you can do it in different ways - not only open a deposit, but also buy securities. The annual income on them may be higher, although the risks of losses will also increase.
For information on when you can start investing and what you need for this, read our article “What should a novice investor know?".
Compare offers
You should not conclude an agreement with the first bank that comes across, even if it was advised by your best friend, you liked the advertisement, or so the inner voice suggests. Study the offers of several banks, estimate the cost of services, income on deposits and the quality of service. So you can find the most favorable conditions for you.
Check your license
Fake banks are extremely rare, but still possible. Be sure to make sure that you are really dealing with a bank, especially if it is a financial institution with an unknown name. If she does not have a license from the Bank, then you are scammers.
Explore Accessibility
When choosing a bank, you should carefully study the location of branches and ATMs, the possibilities of online banking and correlate this with your needs.
Think about how often you have to go to a bank branch: maybe its physical accessibility is an important criterion for you. And if you plan to frequently withdraw or deposit cash from the card, then make sure that there are ATMs of this bank in places convenient for you, not far from home or work. So you can replenish your account and withdraw money from the card without commission.
Evaluate whether you are ready, for example, to go to the bank on the other side of the city every month, because there the interest rate on the loan is slightly lower. Or it's easier for you to pay more at the bank near your home, but not go anywhere.
Or maybe you don’t want to waste time at the bank and it’s easier for you to do everything remotely? Then check the bank's online services. See if they are easy to use and if you can pay for the services you need all the time.
Rate the reliability
Perhaps the most important thing we expect from a bank is reliability. But it is not easy to check whether a bank meets this criterion. The banking system is stable, but there is no guarantee that nothing will happen to your bank. Therefore, the interests of depositors are protected, for example, by the deposit insurance system (DIS). All banks working with deposits of individuals are included in this system.
It doesn't hurt to check if the bank of your choice is on the list on the Deposit Insurance Agency (DIA) website. Sometimes a bank can be a participant in CERs, but at the same time it is not allowed to accept new deposits (this will be indicated on the website).
That is, you can entrust your money to any bank with a license. If the bank has problems, your money will be returned to you, but within the insurance compensation amount - 1.4 million rubles.
In some cases, you can count on an increased payment - up to $ 150000. For example, on an escrow account opened for the sale and purchase of real estate or for settlements under agreements for participation in shared construction.
It happens that a large amount was inherited or from the sale of housing, or you received insurance benefits, social benefits, compensation for damage to life, health or property, payments according to court decisions. In such cases, you will also be paid up to $ 150000, but only on condition that the money was in the account no earlier than three months before the bank's license was revoked. For more information on when the increased compensation is due, read the article "How the deposit insurance system works".
Bank stability should be considered with special attention if you:
- plan to keep on accounts and deposits in one bank more than 1.4 million rubles, taking into account the accrued interest - this is exactly how much you can get back on insurance compensation. If you have saved more, it is safer to keep your money in different banks;
- you open an impersonal metal account or a bearer account (deposit) - they are not insured with the DIA;
- are going to open a business account. The deposit insurance system protects only the money of individual entrepreneurs and small businesses (the company must be listed in the unified register of small and medium-sized businesses). Insurance compensation for business accounts also does not exceed 1.4 million rubles;
- want to use the services of only one bank, and interruptions in its work, even for one or two days, will create great inconvenience for you.
If you have one of these cases, you should look into the financial condition of the bank. Bank reports are regularly published on the Bank website , but it can be difficult to understand them. But professionals do it well - the relevant information is easy to find on the websites of rating agencies included in the regulator's register, as well as in financial and economic publications..
The main thing is to compare what they write in different sources, and not be guided by any one: even experts may not know everything, and may sometimes be wrong. It should be borne in mind that the financial condition of the bank is not static and can change.
Financial analysts react quickly to significant changes, but drawing conclusions from one opinion is not always the right strategy. If you hear something bad about the bank, do not rush to immediately give up on it. First, check if the source of information is reliable, if there is evidence of his words, how others evaluate the event. For example, the reorganization of a bank is not the best news for its owners and management, but for the bank itself, its clients and their money, it is good news.
You can independently understand whether the selected bank is doing well if you have some banking analysis skills. If you are still determined to understand the situation, then first of all pay attention to the following indicators:
Balance sheet profit
This is one of the main indicators that allows you to judge whether an organization is performing well. If for a certain period the bank received not a profit, but a loss, this is not critical. Perhaps he faced temporary difficulties. But if the bank is consistently unprofitable, this is a bad sign. The best option is when the bank shows profit from year to year.
Bank assets
This is all that the bank has invested its capital (own funds) and depositors' money in to make a profit. The main types of assets are loans issued, investments in securities and precious metals, money in accounts with other banks and the Bank, property (for example, buildings, machinery and equipment). Choose a bank whose assets are growing or at least stable.
Capital adequacy ratio (N1)
This standard shows whether the bank can cover possible financial losses from its investments at its own expense. To calculate the standard N1, first, all the bank's assets are divided into groups according to the level of risk and multiplied by the correction factors. Then the bank's capital is divided by the sum of these risk-weighted assets and multiplied by 100% - and the standard is obtained. N1 must be at least 8%.
Instant liquidity ratio (N2)
This criterion allows you to assess whether the bank is able to cope with the obligations that it must fulfill during the day. For example, can he give money to a client who wants to withdraw it from a current account or close a demand deposit.
Of course, all clients do not come for money at the same time. But in order to calculate the N2 ratio, they estimate the amount of all demand accounts and other obligations that may be presented to the bank. Then the assets that he can turn into cash or non-cash money during the day are summed up (for example, take from the cash desk, sell or withdraw from his accounts in other banks). To get the standard, divide the amount of assets by the amount of liabilities and multiply by 100%. N2 must be at least 15%.
Current liquidity ratio (N3)
This indicator helps to understand whether the bank is able to fulfill the obligations that may be presented to it within the next 30 days. For this standard, the amount of assets that the bank can turn into real money within a month is considered. And divided by the sum of all demand bills and liabilities that are planned or may arise in the next 30 days. Then this figure is multiplied by 100%. N3 must be at least 50%.
If the bank constantly violates the regulations, this may indicate financial problems. But this does not mean that they will necessarily lead to a sad result. Problems are often solved, and the bank continues its work safely.
You should be on your guard if a bank with not very good indicators aggressively advertises its services and offers to open deposits at inflated rates.
Don't forget about the quality of service
Try to assess the quality of the service. Read reviews on the Internet, ask friends who use the bank's services if they are satisfied with the service. Carefully study the bank's website: does it have all the necessary information, is it easy to find answers to your questions. Call the bank's hotline - check how long you will have to wait for a response. It will not be superfluous to go to a bank branch and evaluate how they work with clients, for example, you can pay for a receipt or ask the manager about the service you are interested in.
Carefully study the bank's offer
Before signing a contract for the purchase of any service, carefully study what exactly is offered to you. It is worth signing a contract only if you understand each of its conditions.
What to look for if
I want to open a deposit
If you are looking for a deposit with high interest rates, then be sure to check that the agreement specifies what type of deposit you are opening and how exactly the interest will be calculated.
Sometimes you may be offered investment products - when the money that you give for safekeeping, the bank will invest. Investment income is not guaranteed and you may lose your investment. And although such products inherently have nothing to do with contributions, they may be offered to you under the guise of a contribution. Or even call it an investment in advertising, but with a note that this is an investment.
Specify how you will be charged interest. There are deposits with the so-called "ladder" interest. The term of such deposits is usually divided into several periods, and the interest rate varies from period to period. In advertising, only the highest percentage can be voiced to you.
I want a profitable card
When choosing a card, find out how much you will have to pay for its service and whether it has a cashback (the ability to return part of the money that you spent on purchases when paying with a card) or other bonuses. With their help, you can save money. But soberly assess whether you will make purchases on those conditions under which you are promised high cashback or bonuses. For example, if you rarely fly, it will take a long time to accumulate travel miles.
Do not forget that banks usually charge a commission for transfers to cards of other banks, so you should think in advance where you will transfer money more often. Ask what cards your friends and colleagues have and if they like the service.
I want to take out a loan
When choosing a loan, pay attention to its final cost, how much you will have to pay together with all interest. Check if there are any items in the contract for which you will also have to pay (for example, insurance). Find out if it is possible to refuse such additional points (often the refusal of insurance means that the interest on the loan will be higher, because the bank's risks increase).
Sometimes it is more convenient to take a loan at a bank where you already have an account or deposit: regular customers can be offered more favorable conditions and are more likely to approve a loan.
I want to receive my pension on the card
If you are a pensioner, you can receive your pension and social benefits at a bank that has an agreement with the Pension Fund. You can find out whether there is such an agreement either in the bank itself. If there is an agreement, you open an account and write an application with the details.
