We have more options than ever for storing and managing money.

With these choices, however, comes the responsibility of understanding the differences between various financial institutions and platforms.

Traditional banks

Traditional banks are established financial institutions that have been around for decades or even centuries.

They typically have physical branch locations and offer a wide range of financial services.

They leverage technology to provide banking services through mobile apps and online platforms.

They may not be banks themselves but often partner with banks to provide certain services.

1.Verify FDIC insurance:Always check that your funds are FDIC insured.

This protects you up to $250,000 per depositor, per bank, in case the institution fails.

Here’s the FDICsbank suitefor a list of FDIC-insured banking institutions.

2.Understand where you’re putting your money:Research how the institution makes money.

Be cautious of platforms offering unusually high returns without a clear explanation of how they generate those returns.

4.Diversify your funds:Don’t keep all your money in one place.

Spread your savings across different types of accounts and institutions to minimize risk.

5.Monitor your accounts:Regularly check your accounts for any unauthorized transactions or changes in terms and conditions.

6.Be wary ofhigh-yield promises:If an offer seems too good to be true, it probably is.

Be especially cautious of platforms promising significantly higher returns than the market average.

7.Check regulatory compliance:Ensure the institution is properly licensed and regulated.

In the U.S., you could check with the FDIC, SEC, or state banking regulators.

9.Keep records:Maintain detailed records of all your transactions and correspondence with the financial institution.

10.Stay informed:Keep up with news about your chosen financial institutions and the broader financial industry.

Check reviews and test out their customer service channels before committing your funds.

Finally, choose institutions that are clear about their fees, terms, and how they use your money.