Find the perfect bank

Maybe you want to do business with a bank or credit union that has an ATM close to your home. Or you might want to use a financial institution with the lowest possible fees and highest rate of return on your money. Whether you're looking to change banks or you're opening your first account, it pays to shop around, do some research and ask questions, experts say. "As with any consumer product, you need to shop around and compare fees for different services," said Luke Metzger, an advocate for nonprofit consumers group Texas Public Interest Research Group.

Westsider Ken Scholten said he uses Bank of America because it's close to where he lives.

"It has to be convenient," Scholten said. "Ultimately, what I'm most concerned about is personal relationships, people that you can get to know and work with."

John Heasley, executive vice president of the Texas Bankers Association, advises consumers to do an Internet search and compare different banks and credit unions.

"You can get a good deal, but you have to work a little harder for them," Heasley said.

Greg McBride, a senior analyst with the personal finance Web site Bankrate.com, says consumers should consider three factors when deciding which bank or credit union to use -- what are your needs or goals, cost and convenience.

"Are you looking for a home for all your banking needs or are you pursuing the maximum return you can get on particular investments, like CDs or money market accounts?" McBride asked.

Liz Pulliam Weston, author and personal finance columnist with MSN.com, said it's crucial for consumers to understand their banking needs before deciding on which bank or credit union to use.

"Do you rely on ATMs? If that's the case, you need to find a bank with a wide network of ATMs or one that doesn't charge you a fee for using another bank's machines," Weston said.

Consumers also need to compare interest rates for savings, money market and even checking accounts.

You also need to look at the interest rates that the bank or credit union may charge you for taking out a loan or mortgage.

Often, banks will give you a break on fees or a better interest rate if you use the same institution for all your banking needs, McBride said.

"But that shouldn't stop you from looking at the competition to see if you're getting the best deal on each of those products," he said.

Greg Hassell, a spokesman for Chase Bank, said consumers should look for a financial institution that can "provide products to meet every need in your financial life."

That includes credit cards, mortgages, online banking and a wide network of branches and ATMs, Hassell said.

Make sure you know if there are any minimum balance requirements and what the charge is if you dip below those minimums, experts say.

"Look for a free checking account that really is free," Weston said. "A lot of places, you can get that with direct deposit."

Lois Weathers, executive vice president at One Source Federal Credit Union in El Paso, says "free checking is pretty much the norm these days."

"But you need to watch out for any stipulations. Are there any limits on the number of checks you can write?" she said.

Weathers said that if you can afford to meet the minimum balance requirements, you might consider an interest-earning checking account.

One Source has two types of interest checking accounts. One requires a minimum daily balance of $2,500 and has a 0.7 percent interest rate.

The other requires a minimum daily balance of $1,000 and earns 0.3 percent.

If you fall below those minimum balances, however, you will stop earning interest and you will be charged a monthly fee ranging from $8 to $10, Weathers said.

Convenience is also important, experts say. But again, it all depends on your needs.

"If you pay your bills online and have direct deposit, you don't need a branch. The critical thing is your access to ATMs," McBride said.

"Conversely, if you work in a restaurant and get paid in cash, you'll be very dependent on branch locations and hours," he added.

You may not even need to move your bank accounts to get the best deal, Weston said.

To reduce fees, avoid using out-of-network ATMs and don't bounce checks, she said.

The average fee for using a non-network ATM is $2.75, according to Bankrate.com -- $1.35 that's charged by your own bank and $1.40 that's charged by the bank that owns the ATM.

The average fee that banks charge for a bounced check is $27.13, according to the same Web site.

Similar statistics for credit unions were unavailable.

Linda Singer, executive director of the Appleseed Foundation, a national group devoted to social justice, says consumers should ask about overdraft protection.

This is especially important for low-income people and those opening their first bank account, she said.

"Incurring those $25 fees for bounced checks can be a very expensive way to do business," Singer said.

Overdraft protection can be as simple as linking your savings and checking accounts, so if you're low on funds when you write a check, the money is automatically transferred over from savings to cover the check amount, Singer said.

The average price for this service is $5 a transaction, according to Bankrate.com.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.