The economy in the US is not the best these days, and we all need to be extra cautious when handling our finances. Many individuals rely on banks and other financial institutions for many of their financial services. Savings accounts, loans, and credit cards are among the biggest products that customers of a bank use today. However, with the current nature of things you may want to make some changes.
The present state of banks
We all remember what happened a few years ago with the Lehman Brothers in 2008 when they filed for bankruptcy. In fact, it was one of the single largest financial scandals in the world. In more recent times the Wells Fargo Bank has been facing many problems including an investigation into its operations by the US authorities. Many people have come forward to testify against that bank which is repeatedly being accused of many wrongdoings.
How can you protect yourself?
If you hold an account with this bank, you may wish to close and move your assets to other more stable financial institutions. However, you must exercise caution, just withdrawing your money from a bank account and opening a new one in a different bank is not the best as it can affect your credit score in case you also have liabilities with the bank. The best way is to visit the branch where you maintain the account and close it officially. Any debt you have should be cleared if possible as many banks will report your credit worthiness based on the liabilities and assets that you hold in that institution.
Opening a new bank account
Opening a new account is not that difficult, but it can be advisable to open the new one and transfer the money from your old bank to the new one first. When you do this, you will not have any bad marks on your credit report later on. The last thing you want is to be denied a credit line in the future.
Choosing a bank
When you choose a bank to open a savings account, it is best to find one that has a good history of stability. You can do this by checking their assets and liabilities which should be public data. A look at an online profit and loss statement may give you a general idea, make sure the bank is big and has an excellent track record of proper governance.