How to Select a Good Bank or Credit Union for Your Small Group or Nonprofit

Following is a transcript of this episode of the Two Minute Treasurer’s Tip Podcast from MoneyMinder, with audio/video below.

Welcome to the Two Minute Treasurer’s Tip Podcast. I am your host Cyndi Meuchel. Today we’re going to talk about selecting an ideal bank or credit union for your group, keeping in mind, not all financial institutions are created equal.

Megan writes: I am looking at switching banks. What should I look for on my group’s behalf?

In today’s world, Megan, it’s wise to shop around. It’s not just about the interest rate you can get or the fees that are charged. There are other things to consider:

• Do they offer fee-free accounts for non-profits? Banks with monthly fees often waive them for non-profits, but there can be restrictions.
• Do they require minimum balances to be maintained, what are they, and what are the penalties for dropping below that?
• Do they have branches in convenient locations? Virtual banks are getting popular, but they don’t work for all situations and all non-profits. Having a local branch might be necessary. Or at the very least create some conveniences.
• Plan for the future. Make sure the bank is set up to support your group, not just now but as you grow and your needs evolve.
• Finally, it’s not all dollars and cents. Think about the bank’s values and consider whether they align with your organization’s.

Good luck shopping for the right financial institute! If you have a question, email me at [email protected]. My name is Cyndi Meuchel, and this is your Two Minute Treasurer’s Tip for today.

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