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Thread: BOA and the economic downturn

  1. #1
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    Default BOA and the economic downturn

    I use Bank of America for Student Checking and Savings accounts, but have come to distrust them (and banks in general).

    I did use the search engine and read about switching to credit unions and other options (like local, smaller banks, or keeping money in a safe), but they were older threads, and I was wondering if there are updated, better suggestions now that things have changed for the worse.

    My "student" savings account has a monthly interest rate of 0.05%, whereas the regular savings account has a rate of 0.10. I only have a few thousand in there at the moment, and there is no maintenance fee.

    Should I:
    A) stay with the Student account?
    B) switch to regular?
    C) leave Bank of America in general and/or
    D) try Other?


    Thanks in advance.

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    Default Re: BOA and the economic downturn

    Bank of America obviously has some problems, but they also have TARP money from the gov't. It's equally possible that a regional bank could also have problems (although not yet publicized) !

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    Default Re: BOA and the economic downturn

    If you're just talking about savings and checking accounts, you have no reason to "distrust" any bank, unless you have hundreds of thousands of dollars in those accounts.

    Valid reasons to switch-

    1-You want your money in a local bank where you know the money will stay and help the local economy more
    2-You find a bank paying a higher interest rate with the same or lower fees
    3-You find a bank that has better service or that you just like more

    Valid reasons to stay-

    1-BoA is convenient. They have ATMs everywhere

    Depending on how much money you have and whether you need it immediately or not, I'd buy a longer term CD with it. Shop for rates and go with the highest interest rate. If you need to keep it liquid, switch to a regular savings account.

    But there is no need to "distrust" BoA....they're not going to steal your money and run away with it, and your deposits are insured so you can't lose it if BoA goes out of business (not gonna happen anyway).

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    God/dess verfolgung's Avatar
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    Default Re: BOA and the economic downturn

    A) stay with the Student account? (see B)

    B) switch to regular? - I think regular accounts have monthly fees unless
    you have direct deposit or a large enough book of business with the bank. If they have a non-fee option that provides you with the features you are looking for, than go for it.

    C) leave Bank of America in general and/or - Is there a bank which better suits your needs in your area? If so then switch.

    D) try Other?


    After the Morgan Stanley issues, not sure how active BofA will be in acquiring new banks. But I've known people who have tried for years to switch away from BofA only to have the bank they join end up being acquired. Unless of course you go with someone like Wells Fargo, Citi Group or US Bank, but not sure why you would like them better than BofA.
    If you can't win. Make the fellow in front of you break the record.


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    Default Re: BOA and the economic downturn

    Quote Originally Posted by lilymiaomiao View Post
    Should I:
    A) stay with the Student account?
    B) switch to regular?
    C) leave Bank of America in general and/or
    D) try Other?


    Thanks in advance.
    You have gotten good advice. I would add that you should have a separate business checking account with its own ATM card to make your nightly deposits from your stripping business. BofA's business accounts are not near as attractive as student checking. But, they have lots of ATMs so you don't need a complicated sweep account set up. You can go to Tampa to dance and find plenty of BofA ATMs to make your deposits.

    HTH
    Z

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    God/dess verfolgung's Avatar
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    Default Re: BOA and the economic downturn

    Duh, I should have noticed that you're from MA.

    If you have a question on a specific bank in the area, I'm likely to be familiar with how they are doing. Feel free to let me know if you have a question.

    Citizens has a lot of ATM's in the area, but they are owned by Royal Bank of Scottland. Domestically they are doing alright, but their parent in the UK needed government intervention.

    Soverign is the #3 bank in the area, and recently finalized their acquisition by Banco Santandare of Spain. They are almost the opposite of Citizens/RBS, as domestically they are not doing very well, and Soverign has liquidity issues.

    Other big nationals like Key Bank, HSBC, Citi Group, Washington Mutual and Wells Fargo only have a minor presence in the market.

    Decent size regional banks are TD Bank North (soon to be TD Bank) and Eastern Bank.

    Tons of local banks around too.

    Take care.
    Last edited by verfolgung; 05-06-2009 at 03:09 PM.
    If you can't win. Make the fellow in front of you break the record.


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