What kind of bank account should I open?

[Optimal_Solution]

Local banks rarely have good rates. I think many people use a physical branch bank plus an online bank.

I use free student checking at US Bank. No fees, branches and ATMs nationwide. I use it to deposit cash, direct deposit paychecks, and autopaying bills that don't take credit card.

I also use Ally Bank savings. No fees, online only, large ATM network (and ATM fee reimbursement). They have consistently high interest rates. I use it to park my excess cash, deposit checks via phone (or mail) for free, and autopay my credit cards.

I use American Express and Chase for credit cards because of the rewards. I pay for everything I can using these cards. I autopay the full balance each month from my savings account.

Vanguard for retirement/investment funds.

This has worked well for me for about a decade.

[Ego]

Transferwise just created a new borderless account for US customers. Interesting.

https://venturebeat.com/2019/06/26/tran ... urrencies/

[fiby41]

I now have accounts in four banks. First account was opened in the bank closed to home 7 years ago.
Account in a certain bank was required for receiving the scholarship amount, another one because fees for second year will only be accepted from this particular bank and last because this one has a branch with the facility to open a PFF account closest to home.

There's is a Depositors credit guarantee and insurance corporation or equivalent that comes under the reserve bank of that country. US was the first country to have that in 1933 I think but now most countries have one. While opening an account I have to know I'll not put in more than the insured limit per account, which hasn't been adjusted for inflation since before I was born. This is the amount I'll get back if/when the bank fails.

Based on the risk of failure banks are divided into

There are three main types of banks,

Public sector
Private and
Co-operative banks.

The last are comparatively the most risky in terms of going belley up with all your money but also have a bit higher interest rate.

If I exceed the insured amount including balance, deposits and interest, it makes risk management sense to open a new account in another bank.

Another thing to look out for is the minimum balance required. It varies according to if you are living in a rural area, town or metropolitan city. If I don't maintain the minimum balance, a non maintainable fee is charged by the government owned banks.

SBI (bank) reinstated rule that requires me to have minimum balance र5000 (for metro) in my account or pay र115 fine per month. Down र230

Deposited र4192 in SBI bank account to maintain minimum balance.
Total balance now in SBI ₹5000,

On top of that the largest bank in the country has begun allowing only 2 deposits/withdrawal a months, exceeding which there is a flat fee, starting this month.