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This article is by staff writer Adam Baker, whose own blog featured the hit post 42 Ways to Radically Simplify Your Financial Life.
When I was 14 years old, I opened my very first checking account at Bank One. That’s where my Dad banked and so that’s where he drove me when I asked to open an account. Over the years, I continued to give them my business.
By 16, I had opened another checking account (don’t ask me why) and a new savings account, too. At 20, I started my journey into credit cards with… yep, a brand new Chase credit card. (Note: Chase ate Bank One in 2004.)
At 21, I opened my first Chase business checking account and, at 22, I funded $1000 into my new Chase investment account. When my wife and I married the following year, we canceled her National City account to combine our finances with… Chase.
You get the point. While this may not seem too out of the ordinary, there’s only one problem: Neither of us really likes Chase Bank.
In fact, I’ve never really liked them that much. I’ve wanted to switch to a local credit union for years, but just haven’t done it. I’ve been eyeballing USAA ever since they opened their checking and savings accounts up to civilians. Mentally, I want to change…but physically I’m still a Chase customer.
What does it take to make you switch banks?
There are plenty of reasons why someone might switch banks. A couple factors that come to mind:
- Higher rates. This not only applies to rate chasing to find the highest interest rates, but any form of benefits offered. Maybe there’s a 0.5% better savings rate at the bank across the street. Maybe another is offering a free $100 when you open a new account. These are all situations where the bottom line may be the primary influence.
- Customer service. I love great customer service and I’m willing to pay more for it. In banking, this now includes both in-person and online customer service features. While I abhor having to call Chase (try it someday, it’s terrible),I love a couple of the people at my local branch. I know the branch manager and business banker well, and they always greet me by name. In addition, I have specific online banking features set-up that I’ve been using for years. Their online services aren’t perfect, but they’re above average.
- Length of history. As I outlined above, I’ve had a Chase account for over a decade now (and I’m only 25). In this day and age, customers will longer histories at a single bank are more rare. Anytime I have an issue on the phone, I immediately have them look up my history. While I’m not a big fish to them in terms of money, my account history tab shows dozens of accounts over nearly a dozen years!
- Principle. The longer I’m involved in personal finance, the more I prioritize this category. I’m not a huge fan of big banking. I’m not a conspiracy theorist and I won’t be picketing in Washington, but I like the idea of giving my business to a local bank. “Principle” is a major reason Courtney and I reject credit cards, and many people point to this reason giving their business to credit unions.
- Accessibility. Years ago, the only factor I cared about was how close my bank was to my house. Here in the Midwest, no one does that better than Chase. It’s almost as bad as McDonald’s (almost…)! With the rise of online banks, the walls of this one are coming down. For some, however, it remains a huge factor in choosing a bank.
So, will I walk the walk? I’m not sure whether Courtney and I will switch our bank. We want to, but we aren’t compelled to…at least not yet.
I’d enjoy supporting a local credit union or a testing out a bank with a reputation like USAA. I’m not much of a rate chaser and accessibility isn’t a huge priority. I much would prefer a bank I feel good about supporting and that offers me fantastic customer service.
At this point, Chase seems to be just doing enough to keep us around. But after writing this, we’ll see how long that lasts!
Have you recently switched banks? What was your motivation? Any suggestions for me?
J.D.’s note: I stuck with a lousy bank for a l-o-n-g time. Ultimately, I moved my accounts to a local credit union, and I love it. I’ve since added an online bank to the mix (ING Direct). Neither of these banks is perfect, but they both provide excellent customer service and above-average deals, so I’m pleased to stay with them.
This article is about Ask the Readers, Choices, Savings Thursday, 4th March 2010 (by Adam Baker)
I do not switch banks often either. The things that I do not want to deal with are switching my direct deposit forms and also electronic linking of checking accounts. Not that these are both particularly hard things to do, I just am not motivated enough to do it.
I bank mostly with ING and Bank of the Internet. Neither has been bad so that is probably what has not prompted me to move, even though I have seen some other banks I would probably like to try.
We switched to a more ethical bank after news about large bonuses the head of the bank we were at received while at the same time things were not going well at all for that bank.
I really like having our checking account at our local credit union. It’s located right by my grocery store, so depositing checks and using the ATM is very easy, and I really just do prefer having a local bank for checking as opposed to an online bank.
Now, for savings accounts I am totally loyal to ING…I hardly EVER keep money in my credit union savings account.
We have all of our checking accounts and our primary mortgage with Wachovia, also have one small savings account there. Customer service with Wachovia is, I’ve found, great. I get great service, my accounts fit what I/we need, there are no fees, the locations are plentiful and within walking distance from our home, etc.
The bulk of our savings is at ING and again I’m happy with ING but with rates so low I’ve been researching banks with better rates, we’ve got $25,000 in emergency fund money that I’d like to earn a better rate on (keeping it liquid and secure). I’ve also been researching credit unions since I hear such good things about them. It took me a while to find any that I can join in my area and the rates on savings are not nearly as good as ING, the best credit union offered .03% for its high yield savings with a minimum of $2500. I don’t have issues with service at Wachovia, in fact I think the service is great, so I have no desire to move because of that issue.
I have USAA as my bank (and insurer, and investment manager, and just about everything else) and I don’t have any reason to switch. For me it is much more about customer service than chasing rates. I can call them up any time and KNOW that I will have a pleasant experience on the phone and that whatever problem I had will be solved by the time I hang up. In addition, they offer great perks for being a customer (ATM fee reimbursement, free banking, great website & iPhone app).
I’m not sure what it would take to pull me away from them, but it would have to be substantial. If you have the opportunity to sign up, I say do it. At least try it out with a new account, and then only close your existing one once you’re settled in.
What made ME switch to a local credit union?
FEES!
The regular banks helped themselves - well, regularly - to some of my money every month and I didn’t like it! I don’t pay monthly fees to access my own money with my direct deposit.
My attitude is, they make money off our deposit holdings anyway, they don’t deserve more than that.
We just went through the same thing. We ended up sticking with our bank, but I’m still looking into going with a local bank or credit union.
http://ultimatemoneyblog.com/should-we-switch-our-main-checking-account-to-ing
I think people get use to a bank, that they are confortable with it. To go through the hassle of transferring your money, reconfiguring your automatic online distributions, and paycheck… It’s all a big hassle.
So to make me want to move, the benefits of doing so would have to be amazing (or maybe my bank would have to drop the ball and start charging dumb new fees).
We’re creatures of convenience, and to change banks every year or so is such a pain…
Baker, I think you should do a post on health insurance- like what are you doing for health insurance while you are overseas. It would be interesting, I think!
What made me change banks? A reward checking that offered 4.00% interest on the account, while the highest savings I’ve seen is American Express at 1.50% APY. Considering that my checking is paying well above prime rate, and savers are getting nailed in savings, I’d say I found one heck of a deal.
USAA is open to civilians now? Is this for all their services or just their checking and savings accounts.
When I switched banks, I put some money into a new account and didn’t close the old account. Then I switched over the auto payments as I had time.
I had a problem in the past with Chase charging me because I had closed the account, but there was a random auto charge still attached somewhere. If you keep it open for 6 months with a few hundred bucks, you can make sure you’re set before fully closing it down.
I started out with a local state bank, then opened up a new checking account at US Bank when I went to college. When I went home for the summer I didn’t actually have access to US Bank. (Sigh).
Not long after I opened up a checking/Savings account with USAA and LOVED it. I didn’t need a ‘branch’ and I got free ATM reimbursement with foreign travel and they sent free pre-paid envelopes in the mail so I could mail in any checks I received.
For a while I chased ‘high interest’ savings accounts keeping my primary USAA account for deposits and paying bills - USAA does not have great interest rates. But now ‘high interest’ does not really exist. In the end, I do love the customer service at USAA and how easy it is to use. I will probably always have USAA as my primary account.
Poor service would be my motivation to close the account. We have three bank account’s open and we have talked about closing two of them.One of my must have for a bank- must open on saturday. We are also in search for a good savings account.
We switched banks on principle, during the financial crisis of late ‘08/early ‘09. We needed to combine finances anyway with a joint account and both had individual accounts with the same big British high street bank, but we were so disgusted by said bank’s lending practices and subsequent need for government bailout that we purposely went elsewhere to a smaller bank not motivated by corporate greed. Very happy with that decision.
I can tell you exactly what is making my wife and I change banks. Just a few months ago, I saw a charge for $5.95 on my account with Wachovia. I called to find out what it is and they said I must use Quicken or Mint.com to check my transactions. I said I did. They said there is now a $5.95/month charge for that. Now we’re going to head over to the local credit union and cancel our Wachovia account. It was just that simple. I don’t think Wachovia is so great that they’re worth $72 in fees per year just for checking my balance through Quicken.
When I moved to this area, I opened a Chase account - mainly because my co-worker’s husband was a VP, and she said “we use Chase - you’ll like it!” Sure, there was a branch on every corner, but they charged me if used the ATM more than X number of times, and if I wrote too many checks, plus the service charge just for having an account . . . eventually, I closed that account and opened one with a “Community Bank” which I loved - until that bank was taken over by some Big-Box Bank, and I decidedly did NOT love it. Then, another takeover by Citizens Bank, which I HATE HATE HATED, for a variety of reasons, mainly to do with their customer service.
Ultimately, I closed all of the accounts I had there and moved them to our local credit union - which again, I love. We didn’t think we’d be eligible for membership, but it turns out that this credit union had their ways to make it work. . .
The wifey and I use USAA for some banking and all of our insurance and investing and they are great. We have been with them for about 25 years and have never had a problem with claims or service. Sweet wife tends to bang up her car every three or four years but or rates are still low. We do maintain our main checking at a local credit union where I can go in and look them eye to eye.
I have been with the same bank since I was a child, HSBC, but I have switched my money into higher interest savings accounts or investment portfolio options but the bank remains the same. I also use a credit union and basically anyone who gives and keeps me in a good interest rate. If the rate sucks and the hours suck,, I’m out. So far so good.
I used a local credit union for years with great results. However, as I prepared to move overseas, that wasn’t much of an option–so I went to Chase as they were in a correspondent relationship with our bank here in Ukraine.
Interestingly enough, they have frozen the account because of their “loss prevention” department after I made a sizable money transfer last Friday–because it was done from here in Ukraine from their correspondent institution. I am trying to get it straightened out at the moment–as I told them, they were informed when I opened the account I would be living here, and reminded on several occasions since then. It seems they don’t read very well.
This is the first problem I have had with Chase, though, so I’ll give them the benefit of the doubt this time if they fix the problem promptly and don’t have it recur. Otherwise, when I am visiting back in the U.S. this year, I’ll be changing again.
If I still lived in the U.S. or if I should move back, I would be back with a local institution–probably a credit union–although I have also heard good things both about ING and about Ally Bank ( ).
By the way, I know an attorney who is a banking specialist and lobbyist for the banking industry–who has told me confidentially that if she were in another specialty, she would use a credit union herself.
I switched banks about 20 years ago. I had an account with Lloyds (UK) and so did my mother. She was diagnosed with breast cancer, which metastasized into her brain. We organised an enduring power of attorney because she was slipping away. We took it to the bank to get access to her bank accounts, and they insisted we had to fill in one of their own forms rather than accept the power of attorney. We filled it in and sent it back. She couldn’t sign her own name by that point and so we signed on her behalf attaching a copy of the power of attorney documentation.
On the morning of her funeral a letter arrived from the bank enclosing their form asking us to get the account holder to sign it.
That wasn’t what tipped me over the edge.
About 3 months later we sold mum’s house, and I made a very large deposit into my personal account. 24 hours later I received a letter from the bank manager I had roasted over hot coals about the ‘get the account holder to sign’ letter: ‘I notice that since we last spoke circumstances seem to have changed and you have recently made a large deposit; if you need any financial advice don’t hesitate to contact us’.
4 hours later I walked out of the branch with a bankers draft for the full amount in my account, which was closed. Sometimes you just have to tell them where to get off.
I stayed with a small, local bank for a decade–until they were gobbled up by a big one. During that time, most of the independent banks in my area disappeared in acquisitions and mergers.
Now that I live abroad and travel often, I use a large bank with international services. Therefore, I’d say my main criteria for choosing (or switching) banks is convenience.
In the past 30 years or so, I have changed banks three times. When I was a child (11 or 12) I got an account at the local bank (Canada Trust) that my parents used. I loved that bank, open 8-8M-F and good hours on Saturdays. They were also the first bank iin my home town to have an ATM.
When I got to University, I found that Canada Trust could not negotiate OSAP loans (student loans from the government of Ontario) and since my university was overrun with Bank of Montreal (BMO) bank machines and there was a branch just off caumpus, I opened an account with them. For a period of time I also kept my old account but when I got a summer job, the direct deposit went into the Bank of Montreal account. The next summer I also got a BMO MasterCard and in my final year I also opened an RRSP with them.
I stayed with BMO for a long time but eventually I got annoyed with their fees upon fees upon fees. The straw that broke the camels back was being charged for using their internet service to check my account balances more than a certain number of times in a month (this was probably 15 years ago).
I did some research and opened an account with Citizens Bank of Canada — which at the time was a newly minted virtual bank (and now sadly no longer offers personal checking accounts). I loved the service that I got from this bank — their banking website was a wonder to behold (for 15 years ago) and their call center was fabulous. Their monthly fee was $8/month but it included everthing and was about half of the BMO fees.
About 5 years ago I felt the need to find something without fees. Internet banking had come a long way and I felt that $8/month was now overkill. I ended up opening an account with Presidents Choice Financial (PC). PC bank kiosks (not really branches but more than an ATM) are available at Loblaws, Zehrs and other large grocery stores in Ontario and the ATMs are associated with CIBC. No monthly fees and I still do everything over the internet. Over the past 5 years, I have also opened a HELOC with them as well as a MasterCard. There call center is very much hit and miss with a lot of outsourced accents on the line but their website allows me to do most things that I need to do.
Oddly enough, my Mortgage is not with any of these banks but with another Canadian bank that offered the best deal to the Mortgage Broker I was using.
While I have closed down my old accounts, I still have my original BMO MasterCard as well as my Citizens Bank Visa to this day.
In summary I have changed once because of convenience/need (closer ATMs to university, could handle my student loans) and twice due to bank fees.
This was maybe 5 years ago, but I noticed that my first bank was offering me 0.01% interest, and the bank across the street offered 2.5% interest (it has since gone down, but is still over 1%).
That was that.
Holy moly, I have had the same bank since 1983. Ok, not the actual same bank since it has gone under or changed hands 4 or 5 times since then, but the same physical buildings.
I just have checking with them but each new bank has kept the orginal deal in place (free checks, interest on balance, etc.) that is better than any of their offered deals.
I have not looked at other banks since I am happy with the one I have. Doubt I will change unless they do something like change my account rules.
I do not know that I would switch banks unless my current bank really messed up an account or something. I bank with Bank of America and I have been very happy with them over the years. When we travel, there is always a branch close by if we need it. I like the peace of mind that gives me. They may not pay the most competitive rates, but I love my local branch and the service they give me.
One thing important to note about credit unions is that many are part of a shared network of ATMs and branches. So if you switch to your local credit union you may have access to many more ATMs and branches then you might have realized. I described these shared networks in my post about supporting your local credit union
http://www.depositaccounts.com/blog/2010/01/resources-to-help-you-support-your-local-credit-unions.html
We have all of our savings, checking, CDs and now, our daughters have their checking and savings through our local bank, which is actually a very strong bank, and not likely to be swallowed up by the big guys. We have never paid a fee, because we have enough (with all accounts totaled)in their system. Our savings are about 1.2% at the moment, which is low, but I’m not going to change anything.
When we lived abroad, however, we needed the availablity of an international bank, and we went with Citi. there is a Citi branch in every city we lived in (Dusseldorf, Brussels and Paris)and we maintained our local accounts in Ohio as well.
Our latest challenge, however, is having so many retirement accounts. We are in our late 40s, and with the different companies my husband has worked for, plus several IRAs, insurances, 401(k)s, and small pension plan, we have accumulated about 20 different accounts that need to be maintained (!!!)It’s getting more and more tricky to maintain them all, and we are wondering about how to consolidate them, so that life in retirement is simpler. We’ve always been good savers, and never borrowed against retirement plans, or used any equity in our home,and paid with everything cash so we’re sitting pretty well at the moment. We’d just like to simplify it all! Any advice to that?
I have switched banks and opened new accounts several times. Initially it was for the free money bonuses. However, I have realized that despite the extra effort of opening and handling a new account - I have learned what else is available. I have broadened my horizons and by doing so I feel a little easier about switching to a bank that relates to me, or works for me better, more than just sticking with the same one I started out with.
I switched banks after my bank got rid of one of their rewards for being an Air Miles Gold card member, which was to pay no banking fees.
I called them, explained that I had been with them for over ten years, held a decent amount of money in my accounts, and would like the fees waived. They refused. I asked to speak with a manager. She refused. I asked to speak to a customer retention specialist. I told them that I would switch banks. They said there was nothing they could do for me.
I set up an account at a no-fees bank, and came to my regular bank a few days later to close my accounts and withdraw all my money. Suddenly, without asking the teller to do anything more for me, the bank manager came over and asked me to stay with the bank, said he would waive all the fees, etc. I explained that I had already asked for this over the phone, and got nowhere. He said that maybe they thought I wouldn’t do it, but now that I was actually here closing my account, they would do what I had originally asked!!!
I said no thanks, and closed all my accounts.
Here’s what it took for me… 45 times more interest! I have been looking around at options for better interest on my checking account. My current bank is paying a dismal 0.1%. So when I found a rewards checking account that was paying 4.55%, this was an easy decision to make. Instead of eating a meal out at the mexican place, like we did with the $25 in interest I made last year, I’m looking forward to helping pay for a vacation, pay down some debt or update my house with the interest this year.
A little pain for a significant gain.
Ditto Bob! USAA is my…everything (financial). Didn’t used to be, but their OUTSTANDING customer service has completely won me over. I went through a (horrible) divorce a while ago and they gently and patiently walked me through it. I really can’t say enough about them; in a world of annoying phone trees (press 3 for more selections) it’s so nice to deal with a human who know her products and is pleasant!
I’ve used USAA for years, they probably have 75% of my accounts. The reason I am so loyal to them is their excellent customer service.
I recently (FINALLY) got my husband to switch banks! He was with a bank for over 20 years before I met him. I wanted to bank out of Wilmington Trust because of their rewards and the fact that if I have a problem, question, or concern, I know I can walk into our local branch and get straight talk directly from the branch manager.
The interest rates are all pretty much the same around here, (although we do keep our savings in ING), but its a combination of things for me.
As for choosing USAA, as a prior military member, I dont bank with them. I used to, but it was also when you had to mail checks to them, etc. I’m not a big ATM user, but still.. I havent looked at them recently but it would take a lot for me to go back with them.
I use ING and USAA. I’ve looked at local credit unions because I like the idea and one has interest rates higher than ING. What stops me is the ease of use. I do all my banking from my computer and I love it. I can deposit my checks on my scanner and pay all my bills online and transfer money easily. Local credit unions don’t offer that and that is what keeps me where I am.
Don’t think of joining a CU as helping a local business, think of it as helping yourself. You become a shareholder and are helping contribute to the health of the business you hold shares in.
My CU does a shareholder give back, where at the end of the year they give an extra couple points of interest on saving accounts and CDs. Thats a good investment and I doubt Chase does that, they give their stock holders the yearly bonus.
We switched from 5/3 Bank to a local credit union mostly due to customer service and partly due to principle.
In 2008 I seed a $5 savings account that I hoped to start filling once we’re passed Baby Step #2 (see Dave Ramsey). On the one year anniversary, 5/3 closed that account and charged a $5 maintenance fee. No letter, no warning, no phone call…just took my $5 - all for the sake of “inactivity.”
When I walked into the local branch, all they had to say about it was “It says in your paperwork that it would be closed after a year of inactivity.” No sympathy, no bending, *no apology*. Since then, I’ve been getting 4.5% on our checking at a credit union and have been BLOWN AWAY at how much better the customer service is. I think I receieved $.04 from 5/3 one quarter in interest on my checking…this month was closer to $20…
I even got my account confirmation emails from a real person’s email address. How crazy is that in today’s world?
As an original Bank One banker who was then absorbed by Chase and is now primarily an ING user, I say ease yourself away. Chase will eventually do something that pisses you off (as they’ve done to everyone in my family) that will remind you why huge mega-banks have some serious customer service drawbacks, and you’ll wonder why you patronized them for so many years. I use my Chase account as an in-person funnel to deposit money into my ING account because of the deposit-friendly ATMs, but that’s pretty much it. All of my savings are in ING where they earn more interest and I have yet to have an issue.
We have been with our local CU for over 23 years now. They have two offices in our town and couple in other towns nearby. They offer many different services, including online bill pay. Opened an ING account two years ago to help automate savings for specific things (property taxes, vacation, etc) and this has worked out very well. I like the convenience of the local offices & the ability to access ATMs without fees through the SUM network.
A timely subject and one that has personal significance for me.
I have banked with Alliance & Leicester (a British bank) for 6-7 years now, despite the fact that they have rotten customer service, poor rates and minimal functionality on their accounts. When I first started banking with them, I was eligible for one of their best accounts and was paying in £1000/mth or so.
A relationship breakdown and a credit default later and their stupid rules meant that I was only eligible for a ‘basic bank account’ (no debit card/cheques/interest) - despite the fact that I’d funnelled maybe £50,000 through their coffers over a 3-4 year period!
Despite this, I stuck around and put up with poor service, a useless account and staff who seemed frustrated that I would deign to waste their time… It is bizarre that we put up with so much nonsense from our banks.
I’ve since changed banks and was so surprised at receiving friendly service at my new bank that I almost fainted! Still, I’ve learned my lesson now and from now on I’ll be banking wherever offers the best combination of savings interest rates and service…
I loathe my local credit union - at one point, their service was so bad, I wrote a letter to their board of directors and got a condescending phone call from their CFO. But I don’t move my account because, you guessed it, no fees.
@Mrs. Money - While overseas we stayed in no place longer than a year. As such, we simply had travel insurance (we actually tried to get private health insurance in New Zealand for 6 months, but they told us we need to stick with travel!).
Since coming back to the States, Courtney and I have had a fun time researching health insurance. I’ll strongly consider talking about this experience.
@Everyone - Wow, lots of great feedback. At least I’m not the only one in the boat. I should point out we did have ING Direct for around a year. I ended up canceling because they couldn’t be my ONLY bank (I like simplicity) and they couldn’t do International Money Transfers (which was a pain if in an emergency overseas). I did love their customer service, though.
Thanks!
I recently switched to USAA. It was a long process making the switch with all our automated payments / deposits. However, the one thing I did notice was that I get our deposits at least a day earlier than at my old “big boy” bank. Once I realized that…I was annoyed at the old bank that they were floating my money to their benefit. It took a bit to get used to an internet bank…but I really love it. I am so happy that I converted. Can’t believe I didn’t do it sooner!
I stay with my main bank - current (checking) account, emergency savings and emergency credit card for a number of reasons. The customer service is stunning - I swear they feed their phone-people happy pills, and they aren’t outsourced to millions of miles away either, so I don’t have to deal with someone who hardly even speaks English (sorry, but my last bank was that poor). They have an ethical investment policy which I broadly agree with, so my money isn’t being used to support the arms trade or oppressive regimes (again, bank-1, I’m looking at you). As a bonus, it’s a co-operative, so if I register as a member (free), I get a dividend (share of the profits) added to my account each year.
My other savings accounts are chosen on the basis of rates, and customer service, with a nod to ethics, in the sense that there are certain banks that I will just not bank with. Given the choice, I prefer to put my money into building societies (owned by members, not shareholders), and I’d certainly consider a credit union if there was a convenient one.
Convenience is the only thing keeping me banking at Wells Fargo. They have branches almost everywhere near where I live and in the west in general. I do have an online bank account as well for a higher savings rate (but not that much higher!) I have been tempted to switch to USAA since I have my rental insurance with them. But the thought of mailing checks and having to wait for them to reach them has made me hesitate. Looking at these comments, though, I might look into it a little more. I guess I’m in the same boat as Adam
I too just switched to a local credit union after nearly 20 years. I was just so fed up with all of the new policy’s/fee’s and new management.
I switched out of a credit union because of convenience (lack of) and service.
There were only 3-4 branches/ATMs in my area.
The service was geared towards what pleased the employees rather than what worked for the account holders.
It was like banking with the Post Office.
I’ve maintained relationships with a few banks as sometimes a policy change can leave you high and dry. It helps that my early career was spent working for a couple of bigger banks, so those relationships were created somewhat organically. Expect to eliminate one of the relationships later this year. Although I’ve seen the light and am working my “debt snowball”, I received a major set back on rates even though I’m reducing my debt rapidly. Nobody gets to that and keep my business!
My wife and I just switched banks because our National City account was changing to PNC and we were going to have to switch all direct debit/deposits anyway since the routing numbers were changing.
Principle was our main reason for choosing a local bank, just to help the local community/economy.
It wasn’t too big a hassle. We had to both change our direct deposit, then change the automatic house payment, electric and water bills.
Until recently I was with a small Canadian bank that was owned by VanCity Credit Union (Vancouver), even though I don’t live anywhere near there. So it was all online, on the phone and by fax. I loved it. The fees were great (almost non-existant) and while the customer service went down hill in the twelve years I banked with them it was - even at the end - better than any bank I had been with before.
Then they decided to get out of the banking business. They still have credit cards and GIC’s, but stopped offering savings or chequing accounts. Thanks. :/
So I switched to one of the “Big 5″ Canadian banks. The fees are more… quite a bit more … but the branch is right up the street from my office, and I pass it on the way home every day. The customer service has been amazing. The rates are even about the same as at the old bank. All in all? I’m out the extra service charges each month, but the ease of use makes up for it.
I didn’t switch banks totally. I simply opened a new account at another bank because they offered more online bill paying and transfer capabilities. So it was convenience for me.
I kept a balance at the previous bank because I can view my credit card transactions online and see exactly what is going on with that my card.
So my situation was not a cut-all-ties-switch.
I have to admit that when I’ve changed banks it’s not been for logical reasons at all but because I was angry at my bank for some reason.
For example, once I had an automatic debit from my regular account to my special savings account set up, and when I changed jobs and paydays I changed the day of the month that it happened. But for some reason it kept snapping back to the old day of the month (not consistently, just every now and then it would revert, so I’d change it back and then…).
One time it happened and I didn’t have enough money in the account to cover it. So I got charged a $30 fee for going into negative. I told the bank the story, and they said it’s my responsibility to check when the automatic debits come out regularly and they would not reverse the fee.
So I got really annoyed and changed banks the next day! Now I have a bank that doesn’t charge you for going into negative, not that I ever intend to. Not sure how that works, but I’m happy with it.
I changed banks about 15 years ago. I had banked at the same local savings and loan that I started with as a child until they were acquired by a regional bank which was acquired by yet another bank and finally acquired by 5/3 (or as I like to call them: the fractional bank). After they became 5/3 they changed their telephone listing to a 1-800 number that rang to a call center in another state. They repeatedly refused to give me the number of the local branch and had trouble “locating records” of my account. I hotfooted it to the local branch and closed my account. They never even asked why I was closing the account. Have been with another locally owned bank ever since. I’m a small business owner and like to do business with other local business owners.
I banked with a Texas/Oklahoma bank, IBC, from 1998 (I was 14) until two years ago. I initially chose IBC because it was where my mom banked and we had known the branch manager in our town for years.
What made me move to Bank of America? Well, it was a customer service issue. I moved to Houston for college and, although I was pleased with the service I received for a time, things slowly started to go downhill. The tellers at the branch I banked at started to deliver consistently poor service.
The straw that broke the camel’s back was this: the postal service managed to lose a $2000 check I’d mailed as a deposit to my wedding photographer. I called to cancel the check and, although my branch initially said this was fine and they wouldn’t charge me any fees, IBC ended up charging me a hefty sum for the check cancellation.
I called my branch manager and told him I wanted the fee removed — I’d never had to cancel a check before, I’d been a customer since 1998, etc. The manager treated me like an idiot…so I told him I’d be taking my business elsewhere. Eventually, he relented and refunded the fee, but said: “We will never do this again for you.”
I moved my money out of IBC the next week.
How do so many of you qualify for membership at a Credit Union? I just checked all credit unions in my area, and my husband and I do not qualify to be members at any of them.
I use USAA for just about everything. ING for some higher saving rates. The customer service is fantastic. I had a question about my change in my auto insurance rates that they were unable to answer right away, which is rare - they were able to answer my other 10 questions. The phone rep looked up the info and called me back within an hour with all the information I needed.
Without a doubt, USAA’s customer service is the best.
http://bwnt.businessweek.com/interactive_reports/customer_service_2010/
USAA is now open to civilians, but I don’t believe it is open for some insurance options.
Just a note on USAA membership. USAA was setup to service and support Active and Retired Military personnel. Now over the years they have expanded membership to encompass a larger portion of the population, but please be aware that not all services are available to everyone. Pleasse use the link I have included to see where you qualify.
Also please note that for 99 percent of the country you will not have access to a brick and mortar bnk for USAA. They have one, yes one, physical location in San Antonio, Texas. I have been a member of USAA for 10 years and have never had a reason to go there, but you may. All transactions will take place via phone, internet, or other banks ATM’s.
https://www.usaa.com/inet/ent_utils/McStaticPages?key=why_choose_usaa_eligibility_main
I will not do business with Chase and I told them I would let everyone know why. I was dealing with my dad’s estate 7 years ago. He had several credit cards with balances, one being Chase. I contacted them all and told them (as the executor)there was money in the estate so they would all be paid from the estate. All were nice and professional except Chase. They kept hounding me for their money, sending me letters with late fees and collection notices (we had to go through probate so it took a little while)and even went as far as filing a claim with the estate. They were ultimately paid like everyone else but I will not do business with Chase!!!!!
Either to my credit or sadly not I’ve been with the same bank for over 12 years. It’s gone through 4 or 5 buyouts the last of which was Wachovia.
Oh my Wachoiva. I hate big banks. Really hate them. I was recently overseas for work and had an issue with a payment. The “only” solution was to put a stop payment on that transaction (online banking) and reissue. Ok…..oh nooooooo……everything BUT that transaction got stopped. Now you would have thought this would have been no problem considering the transaction was to their mortgage company.
Call after call after call…..emails, calls, re-explaining. I’d copy and paste the previous email and still get some canned answer that had nothing to do with my issue. A month later it was finally straightened out.
When I returned back to the US I marched into my local credit union and opened an account. I have my ING savings, my credit union checking and savings, and Wachovia which I have not closed for the same reasons as those previous writers. My direct deposit, and bill pay are all set up. So the money flows in and then flows out. Very little is kept there.
The banking industry as well as the financial industry have played fast and lose with the facts, figures, and income statements. I don’t for a moment believe they are in crisis. They may not have made what they think they should have, but I’d bet they did make money.
Baker, I’d just switch. Why support a bank you don’t like, even if the local people are ok? My credit union is awesome and has excellent online services (including ability to SCAN in my checks for deposit!)
@Lizabeeth,
I’ve been a member of a credit union since, well, since I could bank (and I love it). But I did find some suggestions for you:
http://www.creditunion.coop/how_to_join.html
Credit unions are for everyone, but the law places some limits on the people they may serve. A credit union’s charter defines its “field of membership,” which could be an employer, church, school, or community. Anyone working for an employer that sponsors a credit union, for example, is eligible to join that credit union.
If you don’t belong, here’s how to find a credit union to join:
1. Call your state league. A representative will tell you about credit unions in your area that you are eligible to join. Here’s a list of contacts in each state.
2. Ask your boss. Your company may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union. Many employers offer direct deposit of payroll to your credit union.
3. Poll your family. Does your spouse’s employer sponsor a credit union? Most credit unions allow credit union members’ families to join. Each credit union, however, may define “family” differently. At some, only members of your immediate family are eligible. At other credit unions, family may include extended family members, such as cousins, uncles, and aunts.
4. Quiz the neighbors. Some credit unions have a “community” field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.
5. Read the yellow pages. Some credit unions rarely advertise, so you might not know about them unless you look them up. A yellow pages display ad may state a credit union’s field of membership. If not, at least you’ll know what number to call to ask about membership eligibility.
6. Call us. The Credit Union National Association can help you find a credit union by calling (800) 358-5710. You’ll hear an electronic message that includes the name and telephone number of a person at the credit union league in your state who can help you find a credit union to join.
7. Check the online database of credit unions. Use our credit union locator.
I have been with the same bank for 30 years, although they have since been acquired by Huntington. My local branch has always given me outstanding personal service. When I got divorced they only charged $250 to rearrange the house mortgage to my name only. When I needed a bunch of crisp new $100 bills for travel to a country which is under sanctions and has no trade relations with the US (meaning you cannot use a US credit or debit card there) they did it in a couple of days. When I needed a complete banking record for a couple of years for an immigration matter they did it on the spot and perfectly. You think I’m ever changing banks?
As for credit unions, the one at my workplace had an embezzling manager who is still serving prison time. Lots of people mysteriously had checks bouncing all over the place and had lots of dings on their credit scores because of that one.
I LOVE USAA. We use them for all of our banking, plus insurance.
A few days ago, an insurance agent called me and asked if I’d like to compare rates to what I’m currently getting and I flat out refused a quote on the basis of customer service and was sure to tell the lady that was my reason. I KNOW that we get fantastic customer service with USAA, so I won’t switch banks unless USAA ceases to exist or their service seriously begins to decline.
I’ve used local credit unions for the last 10 years. I was a Wells Fargo customer before that, but got tired of the asshattery.
I too have no reason to switch, particularly because I refuse to willingly[0] do business with big banks.
[0] Unfortunately, my mortgage is with Bank of America because they bought Countrywide, who in turn bought the small lender we originally borrowed from. Refinancing to get to a small lender again is too expensive with closing costs, and will just get bought out by a big bank, for sure.
We switched banks after our former bank significantly cut their rewards checking interest rate to .87%. We get 3.25% with our new bank.
I have a switching bank problem. Right now I have accounts at
ing - love the interface and the savings sub-accounts
pnc - wanted to try out virtual wallet, didnt love it
credit union - support my local credit union, family, individual, business accts
huntington - friend works there
schwab - atm re-imbursements I use when traveling
usaa - just signed up to try remote deposit
smarty pig - cute (my wife likes the colors) and good rates
Right now I’m pretty happy with using my credit union as my place to deposit checks, my hsa account, business account, and then managing all my family’s money at ing. I transfer the money out of the credit union (except for an emergency fund) and do automatic payments and savings at ing.
I may convert to just my credit union and use smarty pig for my savings, as they are offering more in online banking right now.
But, I just signed up for USAA, so we will see how that goes. They also have atm re-imbursements, which I like.
I wish I could just get it all at my credit union. High rates at smarty pig, low rates at credit union. ATM re-imbursements at schwab….
My wife gets mad when I switch us banks, so I’m trying to stop doing that so often. When it was just me, I switched banks every couple of years. Mostly because of customer service. If a bank treated me poorly, I was out the door.
Then my wife introduced me to the credit union and the customer service has been fantastic. If it had more features, I’d love to just stay there.
I can count on 3 hands the number of times I’ve switched banks.
Obviously it doesn’t take much.
I guess I’m in the minority here….we have our mortgage through the local credit union and absolutely hate it. Rude, poorly trained employees, lousy customer service, etc.
I bank through Wachovia and don’t mind driving 30 miles each way to deposit checks and run other errands occasionally. We moved that far away about 3 years ago and I’ve been pleased with their service for over a decade so I never bothered to switch. (And that same credit union is literally 2 blocks from my house but I won’t have a checking account there.)
I’ve been a customer at Wachovia for 10 years. I’m from the Southeast US, so it was always a local/regional bank for us, and the customer service was *excellent*.
BUT, Wells Fargo has ruined my bank. They’ve started to send me ads (that look like official documents) offering “free” credit monitoring (for one month, only $9.95 per month afterwards) and the customer service is terrible.
I’m switching, hopefully in the next month.
I recently moved my banking to a credit union. I got a savings account at 5% interest(yes, thats not a typo, check out the website above), a great low rate credit card and the satisfaction of actually knowing people at the bank and being treated well. Plus I get a dividend every year. Sweet!
I hate Bank of America. I have had to deal with them for my parents. They have slowly moved their checking and savings from there. BOA charges when a customer needs speak to a customer service agent?! My parents have been going to that bank since 1989 when they were Nations Bank. They have the most ridiculous and unnecessary fees. I wish something would stick it to them.
I have never had a horrible experience with Chase. I had to leave them because there are no local offices in my area. I now bank with Wachovia who is pretty good. No need to leave them yet.
It’s easier to switch savings accounts compared to a checking account. I had to learn the hard way to keep a check book handy, for the rare occasions that I need it. Everything I pay/owe is either through debit or online bill pay
I’ve just closed my checking and saving with Citi some days ago due to fees - yes fees. Citi wants to charge $9 monthly fee unless I maintain $1500 in those accounts, which doesn’t generate much interest at all. I used to use Citibank to transfer money online between banks for free, however I’d found out last year that I can’t make more than 6 free transfers and in a very short limit, right at the moment when I needed money for down payment. This monthly fee was the last drop - I am done with Citibank.
I still have accounts with Chase, BoA however most of my money goes to my SECU. Probably I will close with Chase soon as I don’t do anything with it. I’d opened to do online international wire transfers for a cheap fee ($10 at that time, compairing to $20 with Citibank), only to find out that the online function didn’t work. And the closest bank is about 4 hours driving from our house.
Holy cats!
I had to juggle the schedule at the last minute yesterday. April’s article for today was good, but more appropriate for 6-8 weeks from now, so we bumped it back and moved Adam’s piece forward. “We need something that gets comments,” I thought, “but I don’t think this is it.”
HAHAHAHAH. I was wrong. You guys have lots to say about banks!
If I don’t get a sucker in the deposit tube I drop them like a bad habbit.
I heard about a website to make moving from your bank to other local banks or credit unions. It is called Moveyourmoney.com. Should help to making your move from your old bank easier.
When I moved across country, I had to close down my account with a regional bank that I absolutely adored. I opened one with BofA because I travel a lot, and access to branches seemed important. I’m pretty neutral about BofA. I don’t like them, but I haven’t had any bad experiences.
My fiance has Citibank. Oi. They are determined to drive him away, what with charging a $10 monthly fee for accounts with less than $1500. When we move, we’re going to open accounts with either a credit union or a regional bank. We’ll see what’s available when we get there.
When you leave your 1$ at Chase, they can leverage it 100:1 to gamble on the stock market.
They are allowed to do this with the quasi-bank-holding-company-hedge-fund-investment-bank-status.
Your local credit union cannot.
Support your local credit union!
@45 Little House - USAA offers the ability to scan in check and it is like you are at the branch depositing them (you just don’t have to find time during banking hours to do this).
I love USAA but have to say I am gaining an appreciation of local credit unions. I am in a volunteer position where I have to deal with a local credit union for banking needs for the organization. Last year I wanted to buy some land so I can build on it in the future. Every where I went they had no idea of how to offer a loan on a lot, except one big bank. I finally called the credit union and they beat the big banks rates, fees, and closing timing.
Internet banks are great with the easy banking needs but if you don’t fit into their structure you need to go somewhere else that is more flexible.
I like my bank. When I was 17 or 18 and got my first job I decided to open my own chequing account rather than use the savings account my mom had established for me when I was little. I did my research, and selected one of the big banks in Canada where I live. I didn’t want to go to a smaller bank or credit union because I was worried it was more likely to fail in bad economic times. Not sure it’s a valid worry, but I do feel safe with my big bank.
Banks and credit unions compete with each other so they offer similar things anyway. I think it’s smart to always see what your bank has to offer based on what your needs are, and negotiate lower rates on everything you can. I’ve switched banking packages (and so on) based on my needs, but I have never felt the need to go to a different bank.
I think a really bad experience would put me off a bank, as it would any other company. I think it would take something pretty huge to make me switch banks, though. I have a history built up and I have had a lot of very positive experiences. I haven’t had ANY major issues *knock on wood*.
I changed when I got a divorce - moved from joint accounts to a single account for myself. I figured changing banks was safer than opening a new account at the same place, just in case. I picked the bank due to its numerous locations near work and home. I added my wife to the account and closed her old one when we got remarried. Now we have a mortgage through the same bank, so I can use one login to see both and make payments easily which I like.
I switched from Vanguard money market to ING recently for two main reasons:
1) ING rates are better
2) ING is FDIC insured (not a big deal, but a little extra peace of mind)
I guess for me convenience (both physical branches and online features) are the biggest draw.
Little House,
There is no wait on mailing in checks to USAA anymore. You can scan the check with your scanner on your computer and do your deposit from the comfort of your home.
Years back, when I was 21, I had an account at Bank of America that had $11 in it. It had originally been a local bank when I opened the account at age 16, but endured several buyouts until it became BoA. I opened my statement one month and discovered that they’d taken out $5 of my $11 for a monthly fee, and the very next time I went home from college, I closed my account.
Switched to USAA, since they charged no fees at the time and my dad had been in the Air Force and we had insurance through them, and been with them ever since, from telephone banking through internet banking through smartphone banking (depost checks via iPhone! Civilian members not eligible, unfortunately).
For laughs I did one of those Progressive online car insurance quotes last year, but nobody could beat my USAA rates because of my long-term customer (22 years, since I was 16!) discount. Even if they had, I wouldn’t have switched because of the customer service - when a body shop was unresponsive to me, the USAA agent I was working with patched me in on a three-way phone call with the owner of the shop and asked him to explain why my car wasn’t ready yet. She merely said “Mm-hm” several times while he stammered around the question, and then he said it would be finished that day and I could pick it up that afternoon.
Now that’s power!
I have been a avid reader of GRS for a number of years and love the content, JD!
I lived in the US for a couple of years and loved the banking system - everything is so convenient and mostly fee-free. I had accounts with ING, HSBC Direct and Wells Fargo.
Just for everyone’s entertainment I thought I should post what the banks over here in South Africa are getting away with. These fees are more or less the same for all the banks here:
For comparison, I will tell you that a a Big Mac costs R20 over here (20 units of our currency). These are for a lower-end checking account:
Monthly account fee: R69.00 (price of 3 Big Macs)
Bill Pay: R3.30 (for accounts in the same bank)
R13.25 (for other financial institutions)
Visa card purchase: R2.75/transaction (client pays explicitly)
Withdrawal: own ATM (!) R1 - R500, R5.50
R500 plus: R11.00 plus 1%
other bank ATM: R5.75 + fees
Deposits (!): 1.1% of value with a minimum of R16.50
Account payments (in bank): R20.00
Balance Inquiry: R3.00
(These accounts pay 0.00% interest)
I would so leave this bank, if I could, but all the banks here are charging more or less the same, so no point switching. Be grateful for what you have…
We get a great deal on banking through my employer. No fees at all, local ATM’s, branches in the grocery store (open 7 days a week), online banking and so on.
We switched from an online bank, whose service had declined and who had started charging fees. Picking up the branch service was very nice, especially since we switched to using more cash for budgetary purposes, and also since my wife’s business (which has it’s own account) relies on the ability to deposit checks and cash. We could, of course, do many of these things with the online bank, too — but it’s just easier to combine that with a trip to the grocery store, and we don’t have to do our cash budgeting in multiples of 20.
The switch did take us a few months to accomplish, though, and wasn’t something we did on a whim. We did a lot of research into the options and are happy with our choice.
We do maintain a savings account at ING, the “named account” thing is really nice for how we choose to save our money, with certain buckets going towards certain goals.
I’ve been using USAA for all of my banking and insurance needs for almost 3 years now. That being said, I love the bank. Absolutely love it. They are great to get in contact with (they do stuff over the phone that used to be a hassle getting my prior banks to do when I was standing in front of them) and are just overall fantastic. I like the fee-free checking and the ATM fee reimbursement. They are my bank and insurance company and they have my Roth IRA. If you have an iPhone, you can deposit checks with just a picture of the front and back; if you don’t have an iPhone, you can either scan the checks on your computer to deposit them (immediately available for use) or use the free deposit envelopes.
I will say that I’m disappointed in their savings accounts - the rates change frequently, and the rates on the Performance First Savings account (for balances over $10k) have dropped to .85%.
Their insurance is really easy to work with (I totaled my first car and had the insurance payment for it within a week and a half, no crazy paperwork needed, etc., and I got just shy of the purchase value back), and member rewards shopping (get money off of purchases made online with a lot of major stores - Barnes and Noble, Home Depot, etc. if you enter the site through the USAA portal) honestly make them worthwhile. If you use them for multiple types of accounts, you get discounts on their insurance as well, and their prices are very competitive.
That being said, I wouldn’t switch everything to them. I would keep an account at your local credit union for doing transactions like turning change into bills or to deposit cash (or get a bank check for the cash so you can deposit it online), as you can’t deposit cash into your account by scanning it in.
For me, it all comes down to “How much are you going to charge me to be your customer?”
I am 21 and have been using USAA for 5 or 6 years because my dad was in the navy. They have amazing customer service. The other day my debit card expired and they had not sent a new one yet. I called, was connected quickly to the right person, and then was one day shipped a new card. They also have great online banking. The only downer is no branches so I also have a local bank to deposit birthday checks and what not so I can then transfer that money to my USAA account.
I have been with USAA since 1991 and have NEVER been unhappy with a charge or operating procedure. I have all my insurance with them as well. When I lost my wedding ring that I had covered with my homeowner’s insurance, they jeweler told me I was the first person who had ever been happy with their settlement on a lost ring (they sent a new diamond plus $2,000). As far as banking, I didn’t like having to mail my checks in to be deposited, but now they have online instant deposits, which is easier than driving to a local bank. There are no local branches (except in San Antonio), but they reimburse ATM fees from any bank.
I believe USAA is open to the public, BUT they do not allow online check deposits for non-USAA members, which would probably be a deal-breaker for me.
I maintain a small free checking account at a local bank for things like cashing an occasional check, cashing in change (they have one of those change-counters, and my kids enjoy that), and short-term savings for a particular item (the kids and I are saving for our trip to Hawaii in June). If I had enough to worry about interest rates, I’d probably open an account with ING.
I just switched banks from Bank of America and Charles Schwab. I’ve been thinking about this move for a long time. Bofa is okay, but they do have crazy fees yet they aren’t accessible believe it or not. Charles Schwab has an amazing rate so I had to go with that.
Chase ate my bank too (WaMu). I actually liked WaMu — great service, friendly, and didn’t feel gouged at all. Rare for a big bank.
I do all my day-to-day stuff at Schwab. I prefer credit unions, and have used them in the past, but I’ve been moving around a lot recently and like the flexibility of the online bank.
The only reason I haven’t closed my Chase account is because I have a CD coming due in May. After that, I’ll be closing out next time I go home. I expect Chase won’t even squawk — they said nothing when I closed my savings account last time I was there. I suspect they’re pretty mad with the grandfathered in, awesome stuff that WaMu had, like completely free checking. I don’t even understand why anyone banks there when you have to pay for the privilege of keeping your money in one of their accounts.
I switched for ethical reasons from BofA to my local credit union. I’ll leave it at that…
If you are thinking about switching, stop pondering and just do it. Even if you aren’t prepared to move all of your funds, take the first step: open the new account.
Keep your old account(s) open for as long as it takes you to switch all of the direct deposits and bill pay autodrafts.
I sat on the fence and procrastinated for months because “it would be too hard to make all of the changes…” But, I actually got in gear pretty quickly after I opened the new account.
Funny, I recently change from Chase to USAA! The story goes like this: I was getting tired of Chase for various reasons, and I had recently opened a WaMu account that I was liking VERY much (it was closer to work and easier to deposit to, plus they had fun perks). I was all set to switch everything over to WaMu, and then Chase ate it. Grr!
Well, then I got married, and my hubby banks with USAA, so we combined over there. USAA is SO much better!! Please, you’ve got to stop putting it off and just switch. They have great customer service, easy at-home deposits, all the services you could want including the free checks with your free checking account. GREAT for service members (my hubby is in the Army).
The only thing I still have at Chase is a stagnant checking account (I have like $20 bucks in there because I’m afraid I still have a check out there floating around) and the credit card (which I don’t plan on keeping for long - they’ve been sneaky with some fees).
I once worked for Nationsbank (which got eaten by Bank of America) so we kept our accounts there for years before switching to USAA, even though we’re military.
It took moving to a State w/out any Bank of America banking centers for us to finally make the switch. I LOVE USAA. Not only is it fee-free, but they reimburse you for things like just using your check card, and for a certain number of atm fees each month. They also will send you postage-paid envelopes for mail-in deposits. Their website and bill pay is user friendly (and free, of course). I’d highly recommend checking them out.
I love USAA! I got an account with them when I was still an AFROTC cadet. There customer service is great and user friendly web interface. I set up direct deposit with them, otherwise deposits would have been a problem.
I haven’t seen anything about them opening all there services to civilians…at least the eligibility on their page has not been updated.
Please advise!
What does it take? Poor returns on my deposits.
I’ve begun moving a number of accounts from ING to several local banks. ING’s interface is simple yes, but they’ve reduced the interest paid on my deposits four (4) times since Jan. 1, 2010!!!
Given the nature of fractional reserve banking, that means for say, $100,000 of my money, ING has $1,000,000 in lending power (Austin Power pinkie to mouth). And for my efforts in making this happen for them, they want to give me $90 a month??? For holding onto $100,000 of my money? That’s not even keeping up with inflation!
When you can move to a local bank and get 3-4 times what ING pays for the same deposits, why would anyone keep their money there? For me, a pretty screen is no substitute for cold, hard cash.
For me that motivation hasn’t happened yet, although it should have by now based on what’s gone on in the banking world.
Of course, what I’m usually thinking about my bank when I go over there is the lack of a drive-thru ATM, which drives me nuts since I just don’t want to get out of the car!
I am intrigued by that whole online push towards moving money over to local credit unions; has anybody participated in this? Has it worked out for you or did you have regrets leaving the bigger bank?
-B
I’ve changed banks a few times over the years. I’m a firm believer that my money talks, and if the bank makes me unhappy by charging crazy fees, etc, then my money walks! I’m currently with a credit union associated to my employer, and I LOVE it. The ladies there recognize my face, and they’re always pleasant. My whole pay gets deposited there, so no service fees, and lower rates for loans & mortgages. I’m in Ontario, Canada, and for those of you who are concerned, deposits at Ontario credit unions are guaranteed by Ontario deposit insurance (like the “big 5″ are covered by CDIC). I’m not sure if the other provinces have their own deposit insurance. I also bank with ING for my savings accounts. I love that I can nickname all my accounts and watch the balances grow!
I switched from BofA after they gave me the runaround regarding some overdraft charges that I thought were bogus. I set a payment to go out after I got paid (on Christmas Day) and they let it go 2 days before causing an overdraft and knocking me with fees. They blamed my car company for it but I insisted they were the bank and they had the control and what was the point of having Bill Pay if someone go get the payment whenever! I know bank with a local state bank and have a great experience and BofA is starting to screw with my credit card. Really shady dealings will make me change!
LOL! I switched banks after one outfit lost a $30,000 municipal bond. First went to a small, private investment bank–loved the service, didn’t love the high fees. Thence, to a credit union.
Credit unions are so superior to banks. I would never consider putting my money in a bank again. As for returns on their investment instruments: ??? I just don’t see a CD as an effective device to put your money to work.
We haven’t switched banks in ages. Bank relationships are very ’sticky’ - once you’re in, they strategically make it hard for you switch - who wants to change all the automatic payments, online banking users and passwords, ATM PINs, etc.?
My fantasy: a high-touch bank that provides human beings to service your accounts AND that offers new customers the service of swooping into your old bank account, sniffing out existing automatic payments, etc. and transferring them over for you (and canceling all that stuff with the old bank, while we’re fantasizing). Oh, and going back to free lollipops would be cool too.
We only have one bank, so I have few options. I did recently open an ING savings (and set up sub-accounts, though).
Off topic…I’ve awarded you with the Beautiful Blogger Award.
http://www.econobusters.com/?p=4137