When it comes to the US banking system, many people have a hard time understanding how it works. Thankfully, there are some basics you can learn about the system.
The Bank of the United States was chartered in 1791. It was instrumental in helping the government collect tax revenues and finance international trade. It also regulated private banks. But it met strong political opposition.
It offers a variety of banking products
United states bank offers a full range of banking products, including checking and savings accounts, money market accounts, CDs and more. It maintains branches in 26 states and lets anyone open accounts online.
The bank’s checking accounts offer a variety of features and perks, with most offering monthly service charges that can be waived by meeting minimum balance requirements. Some of its higher-end accounts also include discounts on fees for home equity lines of credit and safe deposit boxes.
The bank also offers a Safe Debit Account that has a $25 minimum opening deposit and a $4 monthly fee. The account does not require paper checks or access to the ATM network and offers some of the same digital tools as a traditional prepaid debit card, such as online and mobile banking, check deposit and smart assistant. However, the APY on this account is much lower than average. It can be a good choice for customers who want a more convenient way to manage their funds, but it may not be right for everyone.
It offers competitive CD rates
CDs are one of the safest ways to save money because up to $250,000 of your funds are backed by the government. They pay interest for a certain period of time and can help you meet your financial goals, such as saving for a down payment on a house or buying a car.
Banks and credit unions offer a variety of CDs with different terms. Typically, longer-term CDs pay higher rates.
Another option is a bump-up CD, which lets you request a rate increase during the term of your CD. However, you’re typically limited to one bump-up per term.
Currently, the average one-year CD rate is 4.32%, and the average two-year CD rate is 4.08%. However, rates are expected to rise in the future and experts recommend building a CD ladder with shorter-term CDs to maintain flexibility during a rising interest rate environment.
It offers a digital-first customer experience
Banks are always striving to improve their customer experience, as it’s an important factor in the success of their business. Great experiences lead to improved customer retention and a bigger share of wallet, and they have a significant impact on the bottom line.
In today’s marketplace, customers have a wide variety of expectations — from 24/7 self-service to lightning-fast response. They’re also expecting personalized experience across service channels and payment platforms — a challenge that’s made difficult by smart, savvy fintech competitors who aren’t weighed down by the same business and technical debt as banks.
To help combat the challenges that come with digital transformation, banks are leveraging AI and automation to help meet those expectations. For example, AI-enabled chatbots can pull information from various sources and respond to incoming queries, without the need for a live service representative to resolve them.
It offers excellent customer service
The fifth-largest bank by assets, united states bank offers a range of banking products including checking and savings accounts, mortgage loans and insurance, wealth management and payment-service products. It operates thousands of branch locations and has a mobile app that allows customers to review statements, deposit checks, send money and pay bills.
It’s a top-rated bank by GOBankingRates, a ratings and reviews website that evaluates financial institutions across deposit products such as savings accounts, checking accounts, certificates of deposit (CDs) and money market accounts. It also has a very well-rated mobile app, which is designed to make banking easier and more convenient for customers.
The bank is also known for its responsiveness during the financial crisis and pandemic, its support for diverse communities and its overall ethics as a company. It’s a good choice for anyone looking for a competitive CD rate and a digital-first customer experience. The bank also boasts a large network of branches and ATMs, and its smart assistant is a new voice-activated virtual assistant that makes managing your finances easier.