How to tell if you can trust a bank or credit union you've never heard of

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• You may see an intro bonus or high-yield savings account from a bank you've never heard of.
• Check whether the institution is federally insured — if it is, your money is safe should it go under.
• A bank should be insured by the FDIC, and a credit union should be insured by the NCUA.
• See today's best high-interest accounts »

When it comes to opening a bank account, many people lean toward a company they've heard of before. Maybe you trust the bank your parents have used since you were a little kid, or you feel confident in big names like American Express and Chase.

So what do you do when you find out a bank or credit union has one of the best high-yield savings accounts or bank account bonuses out there — but you've never heard of the institution before?

There are a few simple ways to make sure the company is safe and figure out whether you'll like banking there.

Federal insurance is the most important thing

The No. 1 sign an institution is legitimate is that it's federally insured.

As long as an institution is insured, your money is safe should the company shut down. Individual accounts are legally insured up to $250,000, and joint accounts are insured up to $500,000.

If it's a bank, you should see the words "Member FDIC" on the website. This means the bank is insured by Federal Deposit Insurance Corporation, or FDIC.

A credit union should be insured by the National Credit Union Administration, or NCUA. You should see the words "Federally Insured by the NCUA" on the website.

You can also check a company's insurance status on the FDIC and NCUA websites.

You may be looking at a platform that offers accounts but isn't technically a bank, such as Wealthfront or Betterment. These companies often have benefits you can't find with traditional banks or credit union, such as budgeting tools, auto-investing options, and financial planners.

These types of banking platforms aren't federally insured, but they should be powered by banks that are. You should see notes about insurance on the website, and the site will name the partner banks.

Find out if you'd be happy banking with the institution

You've determined the bank/credit union has federal insurance. Now the question is, are you going to be happy keeping your money with this company?

Reading online reviews (Personal Finance Insider has many!) is a good way to find out nitty-gritty details about a company. You can also read online customer reviews or talk with friends and family who have banked with the institution to hear about others' experiences.

You may be looking at a bank or credit union because you found out it pays a high rate or is offering a cash bonus. But think about other things that are important to you in an institution.

For example, if you're worried about overdrawing from your account, find a bank that doesn't charge overdraft fees or offers free overdraft protection. If you need the option of banking outside of traditional workday hours, consider a bank with 24/7 customer support.

And remember: You can change your mind and move your money to another bank, should you decide the one you picked isn't a good fit after all.