When you decide to domicile your salary account with a particular bank, you may end up building a long-time financial relationship with the institution.
What you will be doing with the bank may not be limited to only drawing your salary from it, but also allowing the bank to manage your financial account for other future transactions.
That calls for a reason to be selective and ensure that you are actually choosing the right bank that meets your needs.
If you are not pleased with your bank, you may want to consider changing the bank for your salary account.
Here are some relevant things to consider when choosing a salary account.
- Security: Your salary has to be protected in your bank. Banks usually have some form of insurance security. For instance, the Nigeria Deposit Insurance Corporation exists to protect depositors and contribute to the stability of the financial system through effective supervision of insured institutions, provision of financial/technical assistance to eligible insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions. You can also look at the financial rating of your bank.
- Convenience: You may have to visit your bank to do some transactions such as deposits, transfers and payments. You may need to update some information about yourself or process some official transactions through your bank. Consider the bank that has locations that are close to your office or house.
- Pension account: When you retire from active service, you may decided to ask your Pension Fund Administrator to transfer all your pension benefits to your bank. This means that it still remains your bank when you are no longer in paid employment.
- Minimum balance: Some banks require you to keep a certain minimum in your account. You need to be sure that you are comfortable with the amount the bank is asking you to maintain as your minimum balance.
- Availability of loanable funds:
Banks are the major institutions for giving out loans. Be sure that you are opening your salary account in a bank that can grant you loan when you need it.
- Charges: Go for a bank that does not charge ridiculous fees on all transactions you do with your account.
- Interest rates: Banks charge interest rates for borrowing you money and for keeping your money in fixed deposits. It is beneficial if you can look for a bank that will pay handsome interest on your fixed deposit and charge you less for your borrowings.
- E-payment:
The electronic means of payment is fast becoming more popular than cash transaction every day. You may need to choose the bank that offers you easy access to do online transfers and payments for your regular bills.
- Customer service:
It can be annoying when you need some explanation on your account from the bank but it is not responding or its representative is rude. Choose a bank that is accessible to you either on the phone, through live chat on internet or it can be receptive to your complaints in the banking hall.
