Best bank in Hawaii. What should it be? What services should it include? What city should it be situated in? How many offices and ATMs should it have?
Choosing a bank is often challenging. Choosing the best bank is a serious task which should be successfully solved in order to bring you benefits. There are a large number of banks in the Hawaiian islands. But which one is the best bank in Hawaii? Let’s analyze some criteria which are of great importance in bank choosing.
When choosing a bank, you should carefully study the location of branches and ATMs, the possibilities of online banking, and correlate this with your needs.
Think about how often you have to go to the bank branch: maybe its physical accessibility is an important criterion for you. And if you plan to often withdraw cash from the card or deposit it, then make sure that there are ATMs of this bank in places convenient for you, not far from home or work. So you can replenish the account and withdraw money from the card without commission.
Evaluate whether you are ready, for example, to go to the bank to the other end of the city every month, because there the interest rate on the loan is slightly lower. Or it’s easier for you to pay more at a bank near the house, but don’t go anywhere.
Or maybe you don’t want to spend time at the bank at all and is it easier for you to do everything remotely? Then check the online services of the bank. See if they are easy to use and whether you can pay for the services you need all the time.
Rate the reliability
Perhaps most importantly, what do we expect from a Bank is reliability. But to check whether the Bank this criterion, is quite difficult. The Hawaiian banking system is stable, but ensuring that nothing can happen to your Bank, is impossible. Therefore, the interests of investors to protect, for example, the Deposit insurance system (DIS). All banks operating with individuals deposits included in this system.
To check if your chosen Bank from the list on the website of the Agency on the insurance of contributions will be important research. Sometimes the Bank may be a member of the Agency but making new contributions not allowed (on the website it will be listed).
Also, it is better to trust your money to any Bank with a license. If the Bank has a problem, you definitely get your money back, but to the amount of insurance compensation. However, there are situations in which the stability of the Bank should be treated with special attention:
For instance, you plan to keep the accounts and deposits in one Bank, including accrued interest — just so you can return to the insurance reimbursement. If you have accumulated more, it is safer to keep money in different banks.
You open an Unallocated metal account or the account (Deposit) to bearer — they are not insured by the Deposit Insurance Agency.
You’re going to have a business account. The Deposit insurance system protects only the money of individual entrepreneurs and small businesses (the company must be registered in the unified register of subjects of small and average business).
You want to use the services of only one Bank, and interruptions in his work even for a day or two will give you a large inconvenience.
If you have one of these cases, you should examine the financial condition of the Bank. Reporting banks are published regularly on the appropriate websites, but understanding it can be difficult. But it’s not bad the pros do — relevant information easy to find on the websites of the rating agencies is included in the register of the regulator, as well as in economic and financial media and on special online resources.
The main thing — to compare what is written in different sources, and not focus on anyone: even the experts may not know everything, and can sometimes be wrong. It should be borne in mind that the Bank’s financial condition is not static and can change.
Financial analysts respond quickly to significant changes, but to infer on the basis of one opinion is not always the right strategy. If you heard something bad about the Bank, do not rush immediately to put him on the cross. First, check if the source of the information is reliable if there is confirmation of its words, how others evaluate the event. For example, bank reorganization is not the best news for its owners and management, but for the bank itself, its customers, and their money this is good news.
It is possible to independently understand whether everything is in order with the selected bank if you have some banking analysis skills. If you are still determined to understand the situation, then first of all pay attention to the following indicators:
- Balance profit
This is one of the main indicators, which allows judging whether the organization operates. If over some period the Bank has not received profit and loss, it is not critical. Perhaps he is faced with temporary difficulties. But if the Bank has been unprofitable, is a bad sign. The best option when the Bank shows a profit from year to year.
- The Bank’s assets
It’s what the Bank has invested its capital (equity) and the depositors ‘ money to make a profit. Principal assets — loans, investment in securities and precious metals cash balances with other banks and Bank of Hawaii assets (for example, buildings, machinery, and equipment). Choose a Bank whose amount of assets is increasing or at least stable.
- The capital adequacy ratio
This standard shows whether the Bank’s own funds to cover potential financial losses from their investments. To calculate this, first, all the assets of the Bank are divided into groups according to the level of risk and is multiplied by the correction factors. Then the Bank’s capital share in the amount of these risk-weighted assets and multiplied by 100% to get the ratio. This ratio should not be less than 8%.
- The norm of instant liquidity
This criterion allows assessing whether the Bank is to cope with the obligations that he must fulfill during the day. For example, if it can give the money to the client who wants to remove them from the current account or to close the Deposit.
Of course, all clients do not come for the money at the same time. But in order to calculate the norm of instant liquidity, the sum of all accounts and other obligations, which may be presented to the Bank. Then summarize the assets which it can turn in cash or Bank money during the day (e.g. to take from the cash register, sell or withdraw from their accounts in other banks). To get the ratio, divide the number of assets by total liabilities and multiplied by 100%. This ratio must not be less than 15%.
- Current liquidity ratio
This indicator helps to understand whether the Bank to fulfill the obligations which he can produce in the next 30 days. For this standard consider the number of assets that the Bank can convert into cash within one month. And divide by the sum of all accounts and liabilities which are planned or may occur in the next 30 days. Then this figure is multiplied by 100%. This ratio should not be less than 50%.
If a Bank repeatedly violates the standards, it can talk about financial problems. But this does not mean that they will necessarily lead to a sad result. Often problems can be solved, and the Bank successfully continues its work.
Remember about the quality of service
Try to evaluate the quality of service. Read reviews on the Internet, ask friends who use the services of the bank if they are satisfied with the service. Carefully study the bank’s website: is there all the necessary information on it, is it easy to find answers to your questions. Call the bank hotline – check how long you have to wait for an answer. It will not be superfluous to go to the bank branch and evaluate how they work with clients there, for example, you can pay a receipt or ask the manager about the service you are interested in.
Study carefully the offer of the bank
Before signing a contract for the purchase of any service, carefully study what exactly they offer you. It is worth signing a contract only if you understand each of its terms.
So, we observed in detail some important aspects in bank choosing. But to choose finally the best bank in Hawaii let’s find some details about the most popular of them.
Now you got all the necessary tips to choose the best Bank in Hawaii: important criteria and a list of the most popular banks. It’s time to make a choice.