1) "Online Only" Financial Institutions

Internet only banks can offer great savings rates and more free services.

But other than that, Internet only banks don't offer you much, and generally require you to keep much larger balances.

• Internet only banks don't have buildings. You do everything by mail or online and, if you can get someone on the phone, by phone.
• It's harder to make deposits and, at times, withdrawals.
• You can't walk in and talk to someone, if you have a problem or a question.
• Online banking is impersonal.

2) Big National Financial Institutions

Open an account with a big national company that has a physical branch close to you.

• They have a branch in your town.
• You can walk in and talk with someone if you have a question or problem.
• You can still bank online.
• It's easy to make deposits and withdrawals.

3) Local Financial Institutions

Open an account with a local financial institution.

• A local financial institution is one that is owned by people who live where you live.
• They have a branch in your town.
• You can walk in and talk with someone if you have a question or problem.
• You can still bank online.
• It's easy to make deposits and withdrawals.
• So, which type of financial institution should you use?

You've got to make that decision.

But the FoolProof team recommends you chose a real financial institution with a branch in your town rather than an Internet only bank for your first checking account.

• You want to open your first account in person.
• You want to be able to sit down with a real person if you have problems.