Things to consider when choosing a bank to host salary?

[Master Razor]

For years I gone along with the notion that the biggest bank in terms of clients and money is the safest choice in the long run (won't go bankrupt). Now, I have a choice right now to choose between the biggest bank in Romania (which I'm currently using) or another bank that is a lot smaller but has less/potentially no taxes and commissions compared to the first. The first bank charges me a lot per year for maintenance and other subscriptions.

What criteria would you base your decisions on when choosing a bank for your financial transactions?
Is it wise to just jump towards the cheapest service that is in your way?

Thank you.

[Sazzy]

I dont know how it is over there, but over here banks are regulated quite closely, so you can honestly pick whatever bank you want. When getting a loan, banks require you to host your salary on their account so I ended up hosting mine on the bank that gave me the best loan conditions. I don't think it really matters but since you seem to be doubting, it might be worth it to stick with the larger bank just for ease of mind.

[dreamer]

I choose my bank according to the proximity to my house and opening hours in non working days.

[slikrapid]

big banks may be generally safe (caution: lehman brothers), but they will make you pay for it "through your nose", especially if you insure your deposits
large national banks may be a good choice, the same may apply to larger online-only banks
small banks are very risky, their conditions may be attractive but they are probably playing it above their abilities

when investing or saving, don't put all your eggs in one basket, unless we're talking about the "supreme basket"

the safest way is: don't be dependent on any bank, don't depend on money in the first place,don't depend on the materialistic world at all, but this is difficult to achieve

I choose my bank according to the proximity to my house and opening hours in non working days.

occam's razor, eh?

[dreamer]

it's just they all equally steal your money for shitty commissions, even if you only use online actions.
didn't yet get to the point where I need to get big loans or mortgage.

anyway, if it was up to me, I'd get my paycheck in cash lol

[anon]

Is it wise to just jump towards the cheapest service that is in your way?

I hope that's a rhetorical question... it's fairly obvious why proven reliability is very important when picking which institution will receive and manage your income. A smaller bank isn't necessarily less trustworthy per se, but it may be less capable of handling a crisis than the big boys, who could even be "too big to fail".

I'd expect the rules of the game to vary from country to country, but some all-round advice would be to make a list of all attractive options, then research:

• Customer feedback - pleasing everyone is impossible, but is there a significant amount of negative reviews? What are their complaints? Remember what Bill Gates said about unhappy customers being the biggest source of learning.
• Background - How long have they been around? Who created the bank and who's on management nowadays?
• History - Look for possible past bank runs, accounting scandals and such, i.e. the stuff that won't show up in the "About Us" section of their website.
• Speaking of which... online presence - does their site say everything you'd want to know about them? Does it have a modern design, or does it look like it was last updated on 2006? Do they have official pages on social networks? Even if you couldn't care less about liking them on Facebook, transparency and communication with the public are very important.

Then see how you feel about each afterwards. If in doubt, don't do it.

I would have suggested splitting your funds among the two banks, but it seems the idea is to get rid of your current account to save on maintenance fees, so that won't work here.

anyway, if it was up to me, I'd get my paycheck in cash lol

Fun fact: when I got my first paycheck at my first job, their accountant handed me a literal check and said "the bank closes in fifteen minutes". I ran like the wind and managed to come back with the actual cash in my pockets #epicfeelings #thelostdaysof2013

That job was pretty fun and educational, but they made me do nine hours a day for minimum wage. Which may not have been a bad thing, as it helps me appreciate how much better I am now.

[slikrapid]

is there a significant amount of negative reviews? What are their complaints? Remember what Bill Gates said...

microsoft has tons of complaints, by this logic no one would buy their products

Who created the bank and who's on management nowadays?

how does that help? i doubt any bank has really incompetent management

Look for possible past bank runs, accounting scandals and such

if the big guys decide to dump their bad loans into this bank, a clean past won't make any difference
on the other hand, if they survived scandals, it means they are actually stable

does their site say everything you'd want to know about them? Does it have a modern design

thats packaging, doesn't say anything about the contents


bottom line is: you can't tell which one will fail, not even experts can, might as well just check opinions, what the local people say about their own banks of choice

[anon]

microsoft has tons of complaints, by this logic no one would buy their products

As I said, pleasing everyone is impossible. I'm not saying you should discard a possibility after finding the first complaint - just evaluate them, see if they're true, and how much they'd affect you if they are.

how does that help? i doubt any bank has really incompetent management

If you have several choices, then you may want to pick the one with the least incompetent management all else being equal And who knows, if you dig around you may find someone in there has a shady past.

if the big guys decide to dump their bad loans into this bank, a clean past won't make any difference
on the other hand, if they survived scandals, it means they are actually stable

True and true.

thats packaging, doesn't say anything about the contents

A fresh design doesn't necessarily mean they're secure and stable, but an old and shoddy one would not speak well of them. A bank's (or any other institution's) website is their visible face to the world, as much as their main office. What would you think of a bank whose office looks like an abandoned building? It wouldn't inspire trust, even if they're super stable and have great rates.

Speaking of which, running their home banking system through an ssllabs.com test is also a good idea, and you don't need to have an account to do it.

bottom line is: you can't tell which one will fail, not even experts can, might as well just check opinions, what the local people say about their own banks of choice

That's why I said "see how you feel" There are no guarantees, only things that seem less or more likely.

[slikrapid]

you may want to pick the one with the least incompetent management all else being equal
...And who knows, if you dig around you may find someone in there has a shady past.

assuming one might assess what an incompetent management looks like or what the actual cause of a failure is
also, banksters with a shady past? hmm...

What would you think of a bank whose office looks like an abandoned building? It wouldn't inspire trust, even if they're super stable and have great rates.

maybe they're supporting rustic style, tree-hugging and stuff, thus surpassing the usual capitalist suspects

There are no guarantees, only things that seem less or more likely.

ok, although i'd add: whatever you pick, its the right choice (even if the bank fails, hehe)

[anon]

maybe they're supporting rustic style, tree-hugging and stuff, thus surpassing the usual capitalist suspects

This explanation could actually work if advertised well It's not only what you've got, but also how you sell it.