Banking Discussion

[maflynn]

So I'm thinking of changing banks, so the question is what do you folks use, in general and specifically.

I have citizen's (US based bank) checking/savings. Maybe I'll provide details why I want to change, but suffice to say I'm looking to move away. Do you folks rely on online banking or credit unions, or commercial banks? When I say commercial banks, I mean banks like Bank of America, Wells Fargo, Citizen's, large banks with lots of branches and locations.

What advantages or services does your bank use that brought you to them?

Here's what I have
Online banks
Advantages: Generally better interest rates and services, websites tend to be easier to navigate and use.
Disadvantages: Customer support, no local branches to help you with. Lack of in network ATMS

Credit union:
Advantages: Customer focused, generally has non-fee based accounts. Superior customer service
Disadvantages: May not offer as much services as Online and commercial banks, limited number of branches (as compared to commercial banks) and atms. Slower to free up funds, i.e., more likely to put holds on deposits

Commercial banks
Advantages: large network of branches and ATMs
Disadvantages: customer support, tend to nickel and dime you with fees, can be cold/impersonal.

 

[dmr727]

We have both a credit union and a large commercial bank. We ended up having to open an account at a big bank (Chase) because our nannies and dog walkers wanted to be paid in cash, and it was a PITA to deal with the credit union's daily withdrawal limits. The big bank also has no ATM fees, no matter where you are on the planet. That's convenient too.

That said if it weren't for that, we'd be happy with just the credit union. For savings we use Betterment for the superior interest rate.

 

[Sheepish-Lord]

I’ve used online/non-brick & mortar banks for 20+yrs with no issues. If you don’t handle a lot of cash then most of the time those banks offer higher interest on savings and even checking. For the times you need to turn cash into a check (for mobile deposit) then I do a money order. I don’t know why you list customer support or lack of atms as a con though since online banking relies solely on customer support so it better be good and lack of atms means most waive all atm fees when you need to withdraw.

Ally and SoFI are the top 2 online banks currently. There’s others out there that offer higher percentages, etc but they’re not as well known.

 

[eyoungren]

We are with US Bank. They have been great. There was a time period from around 2000 to 2007 or so that we had no bank. Paychecks were cashed on the bank they were drawn from. But, our local Safeway took a chance on us when Safeway was operating its bank and gave us a checking account. When US Bank bought them out we stayed.

I generally access our accounts via their app, but there are two physical banks in my area (at a Safeway and an Albertsons, reflecting the buyout of Safeway banks that USB made) I can go to if I need to.

At my previous job I would cash my paychecks at BMO Harris because that was the bank the check was drawn on. I don't recall what bank it was before, but BMO bought them out. I did this, rather than depositing my paycheck at my own bank because there was once when my paycheck bounced. I figured if there was insufficient funds in the account at BMO, then I'd know right away. Having cash also made my deposit at US Bank immediate.

At some point the employees there at BMO got me to open an account. Having a second checking account has been advantageous a few times, but it wasn't really used for the last few years as I left my previous job. Now, I've finally got my wife on the account and it's starting to be used.

US Bank has a thing where if a debit card transaction is presented that would overdraw my account, the charge is declined. I set that up because I'd rather not get hit with OD fees. Fortunately, any ODs have been rare.

I do not have a relationship with Wells Fargo. I had problems with them in 1990 and closed my account. Their actions have since proven time and again to me that I don't want to bank with them. BoA charges fees out the wazoo, especially when trying to cash a paycheck drawn on them. So I won't ever use them either.

 

[maflynn]

Ally and SoFI are the top 2 online banks currently

I looked into Sofi, as I've done business with them in the past, and they had a open an account/direct deposit deal where they would give you 250 bucks.

I started googling on them, and found a lot of complaints, in one instance, the bank "lost" 35.000 dollars from one customer, and in other complaints they were putting excessive holds on direct deposits impacting some of those people to timely pay their bills. Oh and that 250 bucks promo, people were complaining that they weren't getting it even though they were promised.

I have capital one for my savings account. I like to have a separate savings so I can stuff money aside and not be tempted to use it for stuff and I'm really happy there. If I were to go with an online bank that would be on my short list but that would negate the keeping of money aside away from my checking account

 

[RokinAmerica]

We use Chase. Wife is the live, go to the bank person and I am the online, transfer money between checking and savings as needed, everything direct deposit, auto payments, etc. guy. Very happy on my side, her...not so much.

 

[Sheepish-Lord]

I looked into Sofi, as I've done business with them in the past, and they had a open an account/direct deposit deal where they would give you 250 bucks.

I started googling on them, and found a lot of complaints, in one instance, the bank "lost" 35.000 dollars from one customer, and in other complaints they were putting excessive holds on direct deposits impacting some of those people to timely pay their bills. Oh and that 250 bucks promo, people were complaining that they weren't getting it even though they were promised.

I have capital one for my savings account. I like to have a separate savings so I can stuff money aside and not be tempted to use it for stuff and I'm really happy there. If I were to go with an online bank that would be on my short list but that would negate the keeping of money aside away from my checking account

Not really sure what you’re after then since banking is subjective and really about what you value. Every bank will have their fair share of complaints.

I have rarely interacted with banks over the years so as long as my money is available and the website/app is intuitive I’m not sure what else there. No idea why banks would be losing people’s money or adding excessive holds as that would violate various banking laws if found to be intentional. There’s always two sides to a story…

 

[Sweet_Caroline]

We use Capital One. No minimum in the accounts, ATM’s everywhere, and so far so good. I never thought I would use them for a bank, but doing research, they are one of the best to deal with.

 

[maflynn]

Not really sure what you’re after then since banking is subjective and really about what you value.

I'm after this:

What advantages or services does your bank use that brought you to them?

 

[maflynn]

We use Capital One. No minimum in the accounts, ATM’s everywhere, and so far so good

Do you miss not having a branch to go to for in person banking (or does your location have Capital one branches?)

 

[Sweet_Caroline]

Do you miss not having a branch to go to for in person banking (or does your location have Capital one branches?)

I can‘t remember the last time we needed one.

 

[DaveCPA]

We use sofi as a secondary account. I’m a banking consultant so I don’t need a lot of customer service. They’ve made mistakes a few times, and it is impossible to get it resolved. I don’t recommend them to anyone that needs customer service.

 

[icanhazmac]

I canceled my commercial banks in favor of a very well established local credit union. So far I have experienced only the advantages you listed and none of the disadvantages, with the exception of a hold on a very large deposit when I moved my accounts. At the time I assumed that all banks do this with large transactions, regardless it did not affect me. I also couldn't care less about the ATM network, or lack thereof, we have several convenience stores in the area that offer no fee withdrawals. My only issue would be their web interface and app are a little... basic.

The commercial banks lost me for a number of reasons, in our household we got rid of two, Wells Fargo and Bank of America. Nothing made me happier than unloading on the BoA rep when we closed accounts there.

Edit: I'm not sure I'd ever be comfortable with an on-line only option, call me old skoolz but I want/need the ability to get in front of a human being in case of issues and it also seems way too easy for an on-line only bank to just disappear. I'm probably being hyperbolic with that but..... Physical banks also offer the added security of a safe deposit box, I've had one for many years and use it often.

 

[Macky-Mac]

Most of my banking is done with a large commercial bank.

I needed a business account for what was then my freelance consulting and this bank had the easiest requirements for opening such an account, plus there was a branch two and a half blocks away and lots of ATMs elsewhere.

The account was opened back in the early 1990s before "online banking" became common, but other than getting cash from those ATMs, these days most of my contact with the bank is online.....deposits, transfers, paying bills, and so forth.

In person banking? I've been inside the local branch office twice since Covid.

For a long time, I've only had checking accounts at banks. "Savings" go elsewhere for better interest.

 

[NoBoMac]

I also couldn't care less about the ATM network, or lack thereof, we have several convenience stores in the area that offer no fee withdrawals.

This.

Or in the case of credit unions, if the CU is part of the Co-Op network of CUs, ATMs are free across the country. And with Co-Op, they have free access with 7-11's ATMs as well.

A split the difference option: brokerage? Most have checking accounts, ATM access, have a brick and mortar location(s) in major urban areas. Sure, will not have the number of locations as a big bank, but if not having to deal in-person frequently, minor inconvenience to travel across town for that once every year or two visit to a physical location.

 

[KaliYoni]

online banking or credit unions, or commercial banks? When I say commercial banks, I mean banks like Bank of America, Wells Fargo, Citizen's, large banks with lots of branches and locations.

These are some things I would think about if I were making a similar decision. First, I would divide "commercial banks" into two categories: National-scale banks, such as Chase, Citi, and Bank of America, and regional/local banks. This distinction can be important during adverse economic events or if a disaster hits a region.

Next, I would consider how much business I'm bringing to a bank or credit union. A client who will have several types of accounts and will use multiple service offerings is more attractive than a client who will only have a single account. Attractive clients, obviously, can get preferential treatment and lots of benefits from a firm.

Finally, I would also look at banks associated with my stock brokerage and/or retirement account custodian. These banks usually offer low fees and free services because banking relationships help with brokerage client retention.

-----------
Specific pros and cons, in my opinion, depend a lot on how you intend to use a specific bank and on your personal situation. Some things that broadly apply, though, are:

• Fintech firms often are run with an it's-better-to-ask-for-forgiveness-than-permission mentality. Banks operated by fintechs may not be a good choice for people who want stability and safety.
• Many online-only banks offset their lack of owned-ATMs by refunding all ATM fees. This can be a great benefit for frequent travelers.
• The FDIC website offers a lot of great resources for assessing banks. Similarly, the National Credit Union Administration is a good place to start for checking out credit unions.
• National-scale banks have greater access to capital, both from private and public sources, and a stricter regulatory regime than regional/local banks. Again, if stability, safety, and access to assets are highly important, a "too big to fail" bank may be the best choice.
• Look forward five years and ten years. Will your needs change? What types of accounts and services do you think will be important to you then?

 

[circatee]

The one exception for Capital One, to me is this, if you're banking a cheque and it is over $5K (I believe that is the limit), you will need to do so via a bank. So, in the past, we've had to pay the cheque into Chase and then transfer the money to Capital One.

Alas, the above is really rare...

 

[eyoungren]

I also couldn't care less about the ATM network, or lack thereof, we have several convenience stores in the area that offer no fee withdrawals.

Both of my banks charge fees for using non-bank owned ATMs. However, that's never been a real problem. It is the rare business that is cash only now days. But if I do need cash, it's easier just to run down to my local grocery store or Walmart, buy something and get cash back when checking out. The amounts available as cash back are the same as what I'd take from the ATM most of the time and there is usually no fee. If I need a larger amount, then that justifies a trip to my actual bank location.

 

[Clix Pix]

Lo these many, many moons ago when I was first starting out with my professional career and also now out of school and permanently living in this area, I went with a local bank. Over the years that local bank has merged and merged again and again so that now it is part of a large commercial bank with branches and ATMs everywhere around the US. Through each changeover and name change I hung in there with the bank, no reason not to do so. Now, I would guess that I am regarded as a long-time "legacy" accounts holder and, yes, this has benefited me a few times. I have no reason to complain about that bank or its services and continue to utilize it.

Since it really is not a good idea to put all of one's eggs into one basket, I do have an account in another fairly large US bank too, and things are going smoothly there as well.

Most of my transactions with either bank are done online rather than making a personal visit to a branch or ATM, although in both cases it would not be all that inconvenient.

As for online banks, a year or two ago a friend signed up with Sofi and was all enthused about it and suggested that I take a look, too, and open an account. Well, I took a look, read the fine print and realized that at least for me it would not be a good move to open an account there and told my friend what my concerns were. She hung in there with them for another month or two, realized that what I was saying and warning her about was pretty accurate after all, and pulled out of there.

 

[maflynn]

I went with a local bank. Over the years that local bank has merged and merged again and again so that now it is part of a large commercial bank with branches

Back when I was young all those years ago, I went with a bank called baybank is in Massachusetts, its too went through series of mergers and I finally ended up with Bank of America. I was also considered a long time customer, but at some point about 10 years ago, they went hard with just fees. At the same time, Citizens was handling my home equity loan, so it was a no brainer to move. It hasn't been all rainbows and unicorns with citizens, and lately its more more troublesome, hence my thread.

Well, I took a look, read the fine print and realized that at least for me it would not be a good move to open an account there

Do you mind stating what you saw? I saw a lot of wording basically absolving them of any liability, and forcing you to arbitration if there's a dispute. My wife was the one who said don't trust a company that offers free money to open an account, they'll bend over backwards and not pay. The complaints I saw on the better business bureau certainly had some of those.

For me, an online bank has provide stellar customer service, because there's no local branches. With Citizen's if I don't want to wait on hold for 20 minutes, or navigate the confusing automated phone system, I can drive down the road to my local branch

 

[Clix Pix]

Gosh, it's been a couple of years or so ago now -- the liability and arbitration things were among them, but it was something about the interest rates or how they handled them that caught my attention and in reading the fine print I realized that what they were promising was subject to lot of stipulations and such so that more than likely the customer wouldn't actually get the benefits of the high interest rates on their savings after all....

I am perfectly happy with the way both of my banks handle my savings and checking accounts and investments, and I decided that it would be very foolish to jump into something wholly new and unfamiliar to me. My friend, fortunately, only put a small amount in there in the beginning and saw that it wasn't going to be magical after all, then withdrew the funds and tried to close the account, which wasn't nearly as smooth and easy a process as opening one had been.

I, too, prefer being able to just get in the car and drive to the closest branch of either of my banks. One of them is quite convenient, nearly within walking distance, actually, and that is the one I visit monthly when I'm swapping my external backup drives in-and-out of my safe deposit box.

 

[MisterSavage]

Ally and SoFI are the top 2 online banks currently. There’s others out there that offer higher percentages, etc but they’re not as well known.

I've had an Ally account for years and I've been really happy with them. Their app isn't the prettiest but it give you a lot of data. I like looking at the high yield savings account accumulation.

 

[KaliYoni]

Since it really is not a good idea to put all of one's eggs into one basket, I do have an account in another fairly large US bank too,

That is excellent advice, especially for people who are close to FDIC or NCUA insurance limits at a single institution. It can also be a way to get the benefits of both traditional and online-only banks.