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Thread: Need help choosing a bank

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    Veteran Member SavannahLynnn's Avatar
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    Dizzy Need help choosing a bank

    Ok, I need to suck it up and get an account for direct deposit so I don't have to keep running to Walmart every Monday. I don't really know what to look for because I've never had a bank account before.. aside from a mandatory one I had from a summer job but it was free through where I worked and it was Rabobank. The banks in my area are: Rabobank, Wells Fargo (would like to stay away from that), Chase, Coast Hills, Bank of America. Any others are local and probably not familiar to everyone else. I just want to know experiences anyone has had with those banks, or any hidden thingys etc. As you can tell I am not too enlightened on this subject lol.


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    Default Re: Need help choosing a bank

    I had Chase for a few years. They re-arranged my transactions a lot, which annoyed me - I know it's standard practice at some banks, but I view it as unethical. I left Chase because they pulled this on me one day - I wasn't paying attention, and had overdrafted one transaction, but they rearranged it so that it overdrafted 4 transactions and charged 4 fees. I would have paid the one legitimate fee, but 4 was not going to fly. I went to 2 different branches and got 3 different answers from 3 different people, one of whom was incredibly rude and lectured me on that I was plainly not responsible enough to have a bank account... so I closed my account. Just left a bad taste in my mouth that there was no consistency on policies and how rude the one woman was.

    I have Wells Fargo now. They require you to either make a transfer of $25 once a month to your savings and to use the card 10 times a month to avoid fees. They've been pretty decent - they will reverse pretty much any fee if you call and ask - a WF banker actually told me they'll do whatever they can to get you off the phone fastest, since they are judged on how long their calls take.

    The only WF issues I've had are with large checks - they place a 2-3 week hold (yeah, it varies) if I deposit them via ATM, so I have to go into the branch and get a banker to do it. They have also outright refused to cash my school refund checks. I had no issues with my summer check, but they refused to cash my fall one, stating I had to have the check amount in my account "in case it bounced". I was pretty peeved since I had to drive 10 miles to BoA to cash it, and the BoA manager laughed hysterically about it.
    If you're doing direct deposit, it shouldn't be an issue, but if you get any sizable checks you want to cash routinely, you might want to consider asking about the branch's policy.
    "People jack off with the left hand and point with the right."

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    Default Re: Need help choosing a bank

    Oh thank you! I had been leaning on Chase being the better option but now I'll reconsider. My bf uses Wells Fargo but I'm not sure he likes them and he was considering switching to Chase. I don't think I'll be using my account so much for check cashing as much as direct deposit though.


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    Default Re: Need help choosing a bank

    If you won't be travelling much, I'd look into a local credit union. Credit unions have far lower fees, and far fewer 'rules', than the big international banks. However, Credit unions are also 'territorial', meaning that attempting to cash a check drawn against a credit union in a different city or state may result in major resistance / delays.

    On the flip side, if you need to deposit and withdraw money in many different cities or states, the big international banks like WF, Chase, Citi etc. provide 'wall to wall' coverage. But they typically have higher fees and more 'rules' ... and especially so for self-employed persons with little credit history.

    In regard to 'rules' now prompting long holding periods for the cashing of checks drawn against different banks, this is actually the indirect result of recently enacted regulations which limit banks' ability to assess fees and penalty charges etc. on bank customers. To protect themselves against potential loss, banks will now typically NOT release funds until / unless

    A. sufficient funds are available in the account of the person cashing the check that can be 'frozen' ( as collateral ) to cover the time period required for the check's funds to actually be transferred from bank to bank ( in case the cashed check is 'no good' i.e. the funds transfer never happens )

    B. sufficient delay has taken place to actually allow for the check's funds to actually be transferred from bank to bank before the cashing bank makes funds available.

    The conventional bulk check clearing and funds transfer process typically takes between 3 and 10 business days, depending on the particular banks involved.

    Such delays can obviously be avoided by accelerating the actual funds transfer via bank wire, EFT etc., but these account specific bank to bank funds transfers all involve extra costs.
    Last edited by Melonie; 12-02-2013 at 04:15 AM.

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    Default Re: Need help choosing a bank

    I agree with a credit union as Melonie advised, or a bank (like Bank of America) that lets you deposit checks using your smartphone/iphone. It makes it sooo convenient, and the funds are available to use in your account (but not to withdraw) instantly.

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    Default Re: Need help choosing a bank

    ^^^ yeah, ultimately, this is about the 'creditworthiness' and 'net worth' of the account holder.

    Most of the big international banks offer three different 'levels' of checking accounts, with different fee structures and different 'rules' for each 'level'. The upper 'levels' require minimum balances ( usually combining different bank account balances and investment account balances ) be maintained, or the payment of very high fees in lieu of maintaining the minimum balance. At the lowest 'level', low fees and/or no minimum balance also equals no 'credit' being provided by the bank ... thus long delays on deposited checks, thus strict rules regarding overdrafts, thus high fees for ancillary services ( ATM transactions, wire transfers ) etc.

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    Default Re: Need help choosing a bank

    Local bank local bank local bank


    Chase, Citi, B of A, they don't care if you come or go.

    Local banks frequently have zero fee accounts and things they usually won't do:

    shred all the stuff in your safe deposit box and turn it over to unclaimed property[B of A california]

    arrange your daily transactions to maximize bounced check fees

    make loan decisions in New York or Idaho or Calcutta rather than in the office you bank in.




    You may get ATM fees but since you all have plenty of cash on hand I cannot see this as a huge issue. The creation of debit cards really makes this almost irrelevant. I pay no checking account fees, and rarely atm fees, and only then cause there is an ATM up the street from my favorite club and sometimes I am in a hurry dontcha know....

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    Default Re: Need help choosing a bank

    I use a local credit union and like it for direct deposits with minimal fees. That said, I don't actually cash checks, I deposit them and use my debit card for purchases. The few times I have cashed one out it was fine and immediate, but this may be because I've had the account a long time.

    Normally when I know I will need cash to go out or something, I get it along with groceries, only occaisonally going to the credit union ATM for larger amounts. It works because I keep money in the account, not sure how well it would be if one usually needs all the money she is paid right away. Then there might be an issue with check delays.

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    Default Re: Need help choosing a bank

    Thank you all for your recommendations! They were great. Melonie, thank you for simplifying it so much! I definitely don't want to have an account where I'm going to have to keep like $200 in it at all times or something and I don't want a hold to be put on anything either. I know we have like one or two local banks here, I think I'll do some looking around and compare them all.


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    Default Re: Need help choosing a bank

    Melonie, thank you for simplifying it so much! I definitely don't want to have an account where I'm going to have to keep like $200 in it at all times or something and I don't want a hold to be put on anything either. I know we have like one or two local banks here, I think I'll do some looking around and compare them all.
    well, the minimum balances necessary to qualify for the middle 'level' accounts at the international banks are in the thousands, and minimum balances necessary to qualify for upper 'level' accounts at the international banks are in the tens of thousands !!!

    Not meaning to pour cold water, but the local / regional banks are bound by the same new regulations as the international banks. This very probably means that you're going to be facing 'holds' being placed on deposited checks at the local / regional banks. IMHO local / regional banks offer the 'worst of both worlds', since they lack the advantages of the international banks i.e. a branch in every US city but still have most of the same 'inconveniences' and fees. However, as Oldster pointed out, some local / regional banks are very easy to deal with and may 'cut you some slack' that the international banks never would ( i.e. offering a line of credit that can be used to 'cover' instant check cashing, overdrafts etc. ).

    However, credit unions operate under different regulations that are less strict. And their fee structures are usually minimal or non-existant. Thus I highly recommending swinging by and then checking out nearby credit unions ASAP. However, there are two potential drawbacks with credit unions that you should be aware of. The first is greater attention by tellers to 'suspicious' financial activity by credit union customers ... which can result in an IRS 'suspicious activity' report being generated by the credit union for an account holder who regularly makes large cash transactions, for example. The second is that credit unions tend to be a bit 'nosey' in regard to the personal finances of their customers. But the lower fees and more lax rules credit unions are able to offer generally makes it worth it.
    Last edited by Melonie; 12-02-2013 at 03:22 PM.

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    Default Re: Need help choosing a bank

    Briefly my experience with my local [national] bank

    fees from the larger chain bank [eventually B of A long after I left] two accounts, 25 dollars a month circa 1993

    transferred to local bank, personal account no fees no minimum 1k dollar credit line, business account, 1k minimum, no fees, max fees ever paid if under minimum, about 10 bucks

    applied for and received 3 mortgages from them. When they see the money go in and the money go out, they have high confidence that you are making money, no matter what the IRS thinks

    stories that you will never hear from a Citi customer south of The Donald:

    Moving my business, very complex, very busy. Bank VP calls: we have a check here that will put you about 1500 under, should we cash it? Savor that for a second, should we cash it? I say yes, I take all the checks out of my inbox and my back pocket and deposit them that afternoon.

    Bounce Fees: ZERO DOLLARS

    A few years before, leaving for Vacation, big rush, leave.............employee calls, you forgot to cut my paycheck[was still doing my own payroll] Call the VP[same one] and ask him if he can cut the guy a 500 dollar check to cover him for the week till I get back. Answer: No problem

    Bank Fees: ZERO DOLLARS

    try any of that with a big bank.

    Now a small bank will cut you slack, but they will have a limit. Bounce checks every month and one day they will close your account. THey are not charging you up the wazoo, so you are just a PITA

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    Default Re: Need help choosing a bank

    ^^^ indeed those were the 'good ol days' of banking !!! However, comparing then and now, today the FDIC insurance premiums which all banks must pay are far higher, today the 'margin' between the banks super-safe US Treasury bond interest rates ( = bank income ) less interest paid to depositors ( = bank cost ) is far lower, the delinquency rate on the bank's credit cards / auto loans / other loans is far higher, and to top it off the banks ability to assess penalties and fees to recoup losses is now much more limited. Tack on higher costs for IRS reporting, for foreclosure / repo litigation, etc., and it becomes clear that bank income from 'conventional' banking activities is now on the ragged edge between the black and the red. This is the reason that there has been exactly one new local / regional bank established in America in the past 3 years ( in a small PA city ). This is also the reason that the big international banks do a whole bunch of 'prop desk' trading of stocks, bonds, commodities, derivative instruments, IPO financing etc. ... because THESE transactions, not retail customer transactions, provide the lion's share of the big international banks' profits. And then tack on the fact that the big international banks are still able to operate using 'free' Fed money via TARP loans, which the local / regional banks weren't able to access.

    Local / regional banks don't have that alternate income stream or near zero cost funds available. Thus they must now be much more conscious of potential loss risk and added expense, meaning that the 'accomodating' attitude which existed in the past may no longer be 'affordable' for those local / regional banks.

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    Default Re: Need help choosing a bank

    Wellsfargo is the best bank. I've been with them for over 8 years.
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    Default Re: Need help choosing a bank

    ^^^ I'll agree that WF is the 'least objectionable' of the big international banks ( although their investment services suck !!! ). But if you do any amount of travelling, the fact that the big international bank where you already have an account also has a branch in the city you are travelling to can offer a very real advantage.

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    Default Re: Need help choosing a bank

    This is all so helpful. Although I'm not sure why I'm still apprehensive to put my money in a bank.


    "We must try not to sink beneath out anguish, but battle on." - Albus Dumbledore


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    Default Re: Need help choosing a bank

    Look, if the bank burns down, your money is safe

    If your mattress burns down, you are screwed.

    Yes banks are evil, but what the hell, we all have to deal with the devil, cause god don't issue credit cards................

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    Default Re: Need help choosing a bank

    Quote Originally Posted by SavannahLynnn View Post
    This is all so helpful. Although I'm not sure why I'm still apprehensive to put my money in a bank.
    Just go with the ones that has the lowest fees. With wellsfargo you can choose a checking and savings together to avoid paying any fees. As I've stated previously, I've been with them for over 8 years and I've never paid any type of fees. Having a checking account is almost a must these days because everything is used either credit and debit cards. And also for certain things or purchases or credit, most want you to have a bank account.
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    Default Re: Need help choosing a bank

    . Although I'm not sure why I'm still apprehensive to put my money in a bank.
    Look, if the bank burns down, your money is safe

    I guess somebody needs to define 'safe'. While US bank deposits ( under a certain threshold ) are FDIC insured, in point of fact the FDIC insurance fund is still broke. Thus if a replay of 2008 bank failures were to occur, getting paid back your 'safe' money would involve A. a US taxpayer bailout, B. waiting for months or years while the FDIC slowly pays out insurance money to depositors based on the actual rate that new insurance premiums are paid in by other banks, or C. the FED simply printing up trillions of new US dollars out of thin air to 'loan' to failed banks.

    Based on actual past situations involving worldwide banks, even in the absence of outright bank failures, the following might turn out to be true in the future. 1) size of depositor withdrawls being limited to X hundred dollars per day / week, 2) Y percent of depositor funds ( over a certain threshold ) being taken by the gov't to 'bail in' the failing bank, or 3) depositors finding that 'old' dollars are being replaced by 'new' dollars ( that have significantly less purchasing power ). And, of course, there is also a potential personal 'risk' that the gov't can seize personal bank deposits if it thinks the depositor owes the gov't money.

    I'm not saying that any of the above scenarios are likely to occur. In fact they are highly UN-likely to occur in the USA. But the risk of any of these things happening is not zero. See Thus, by definition, depositing your dollars in a US bank means giving up some amount of 'control' over your own dollars. This is much easier to justify if the bank is willing to pay a decent interest rate on deposited money ... but at the moment, with near-zero interest rates being paid and fees being charged, it arguably now 'costs money' to deposit money in US banks.


    If your mattress burns down, you are screwed.
    Actually, there are a lot of options for protecting your cash from fire, theft etc. besides depositing them in a bank ... for example . The other nice thing about investing in a home safe is that, unlike banks, you are not limited to 'storing' value exclusively in the form of US dollars.
    Last edited by Melonie; 12-06-2013 at 04:12 AM.

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    Default Re: Need help choosing a bank

    I've used both Wells Fargo and Chase, and (as above) it depends on if you're travelling, and where to. Never ever use Bank of America!! (I thought being Bank of America I could use them nation wide, but each state is independent and you cannot close your bank account if you are in a different state). They told me I had to physically be in the state of Florida (while living in Seattle) to close my account. How ridiculous!

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    Default Re: Need help choosing a bank

    I bank with Bank of America for the convenience when travelling. There are no fees for me as long as I do everything over the computer/ATM...otherwise, 9$ a month. I dislike banks in general but....Bank of America is best nationwide for convenience. I travel a lot, and I've been able to find an ATM to deposit money in every city so far....they even have ATMs in Europe.

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    Default Re: Need help choosing a bank

    With a lot of banks, including some credit unions - if you have an eligible account (that usually requires a minimum balance, mine is $150 in the account a month, or 10 transactions) they will refund all of your ATM fees. I think all banks have a little pamphlet you can view online to see.

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    Default Re: Need help choosing a bank

    ^^^ that is essentially how I use my account with a large international bank ... maintain a 'basic' account, maintain a balance of a couple of thousand dollars for the express purpose of 'covering' deposited checks from 'foreign' countries, and thus provide myself access to the international bank's branch offices and ATM's throughout the USA as well as in foreign countries. This is of major importance to me given that I now spend 11 months a year outside the USA !!!

    In terms of managing my 'other' funds, yes I also keep several thousand dollars in cash, as well as other valuables and important documents, in a high quality home safe. You just never know when you'll need to 'grab the money and run' in the middle of the night, when a 'friend' will need bail money on a weekend, when a power failure or 'Lehman Brothers II' is going to 'take down' the electronic banking / credit card system for a couple of days, etc. !!! I was actually caught in Manhattan during a two day power failure, and it SUCKED because every cab ride, every restaurant meal, every convenience store purchase etc. had to be paid for in cash until the power came back on !!!

    However, the vast majority of my funds are kept in a non-bank but well established company investment account ... rotating from stocks to money markets to commodities to bonds. In point of fact, the investment company being very well established, and NOT being part of the 'primary dealer' banking system ( thus not being the counterparty to loans and other financial derivatives ) arguably provides a much lower risk of future financial problems vs a large international bank. Actually accessing the money in my investment account is a bit involved ... essentially requiring the cutting of a 'cashier's check' or an electronic funds transfer to my large international bank account ... but IMHO this is a 'good' thing since it forces me to seriously consider the reason I'm thinking about withdrawing funds that are supposedly meant to fund my retirement / other business investments etc. ( vs expensive vacations, new cars, expensive new 'toys' etc. )

    However, at an earlier point in my life, when I was living in the same place and dancing at the same club, it was possible for a local credit union to meet all of my financial needs with essentially zero fees. Lots of free credit union ATM's were available within a ( guess ) 20 mile radius. The credit union offered lower loan interest rates, and higher CD interest rates, than any bank. The credit union could also do ( US domestic ) electronic funds transfers, offered a ( low interest rate ) credit card, etc. It really wasn't until I started doing a lot of dancing on the road that the 'limited coverage area' of the credit union versus the widespread availability of a large international bank's branch offices and ATM's became important.
    Last edited by Melonie; 12-07-2013 at 07:28 AM.

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