Switching Banks

dogememe

dogememe

Joined
Apr 15, 2017
Messages
4,514
Location
Napa, CA.
I have been banking with a local credit union for my whole life, but they got a new app/website and it's horrible - I hate it.

Currently I have a checkings account and a savings account. I don't have any savings really, I just keep $100 in the savings account to avoid the minimum balance fee. The APY on that savings account is 0.15% which sucks. Any extra money has been going into paying back credit card debt.

I also have a car loan and credit card with the same credit union.

I've been thinking about switching banks for a while now. Many years ago when I had a business I banked with US Bank and generally had a good experience. My employer now also banks with US Bank and I've never had a bad experience either. So I was thinking of just moving my own stuff over there.

But, plenty of online bank options as well. Ally etc. Any opinions?
 
What's popular in your area? I bank with Chase, and military members get their Premium Plus checking account - but outside of Chicagoland, they only have branches in big cities.
 
I have a local credit union, BofA, and Chase. Chase by far has the best app. BofA is pretty outdated and clunky.
 
I use Synchrony and Betterment for online high yield savings.

Your local checking should be whatever is most practical, as it's not an interest bearing account. Whatever is easiest to deposit and withdraw money with no fees. For me, that is Chase.

One of my local credit unions has a 7% APY up to $5,000 for a checking account. So your 0.15% is paltry.
 
Avoid Wells Fargo. They have been fined tens of millions of dollars for poor treatment of their customers.

As to your car loan, you probably would be better off to leave it where it is. The Federal REserve raising interest rates makes refinancing an old loan cost prohibitive.
 
I use primarily BofA for daily stuff. I don't mind the app, but I do agree it certainly isn't cutting edge. But all I do is look up balances, pay bills and transfer my money to the kids, so it does those tasks fine.

Pick one locally that has lots of branches. If its just a place to park your paycheck always nice to have an actual branch to visit if there is some issue. If your investing in CD's or something you can then chase yield online or just open a brokerage account and do that there.

I would keep the CU account open as long as there are no fees. You might change your mind in the future.
 
If you ever plan to open a trust account, I would recommend that you deal with a local or regional bank. The big national banks usually have you deal with an 800 number call center for any changes, migrations etc, and you will never get the same agent twice. At least with a local or regional operation you have better chances of walking into a physical location and dealing with local person.
 
How do you know your new bank will have a better website?

I get the impression that the apps/ websites are run by third parties, and any "glitches" may spread like wildfire across the banking world.

Ever notice how everyone suddenly let you deposit checks on your phone at the same time?

That said, I fired one bank over website issues. Was then ok with BofA, though they email me 5 years after closing all my accounts. I can't stop the emails because I "have a relationship with them." Am now with NFCU and it's great.
 
Shop credit unions in your area

We use WECU for our local bank and central “collection” needs but always pull to Fidelity which is free and fast. Because well the site for WECU is limited and their transfers are slow.
 
What are you looking for out of the new bank? Good website/app, no fees for opening/maintaining the account (or easily avoided fees), high yield, ATMs used at non-bank ATMs waived, convenient location, long branch hours, etc. Figure that out and that should help narrow what you would want to open/maintain.

I had a relationship with one originally local/grown into regional/northeastern bank though acquisitions for 20+ years, one day my account got compromised and had to open a new account, asked for them to give me a free order of checks and got upsold to an account with higher hoops to jump through, basically ended my "relationship" with them shortly thereafter. I do checking promos with the big banks to add a few dollars a year to my pocket and IMHO most of the big names (Chase, BofA, WF, Capital One) are the same, no complaints but the typical annoying hoops to jump through without getting anything other then the privlidge of them holding my $$s.

I maintain a couple of other local accounts (TD Bank and M&T) and have an account with Penfed that lingers from when I converted a car loan from a local credit union to Penfed, again they all get the job done but don't really give me all that much. The super low or no yields on those accounts for me thinknig and I've consolidated most of my accounts info Fidelity because of the ease of stuff being in one place, plus the yield in SPAXX/FZFXX. They have a Cash Management account that acts like a checking and a setup under Fidelity Bloom with "save" and "spend" accounts basically with the intent of acting like savings and checking. The Bloom spend account and cash management accounts have different perks depending on the one wants to use the account, and I gather the Bloom accounts are likely targeted to the everyday free checking/savings crowd FWIW.

I haven't gone so far as to drop all local branches since i don't have a Fidelity location nearby but am considering it, more the psychology of not having a bank to go to than actually going...
 
We use a local bank. I like the fact they have branches all around my area, their customer support is fantastic and not outsourced overseas.
 
I have nine online bank accounts that pay at least 5%, but for $100, I wouldn't bother. My local B&M bank is Capitol One with dozens of branches in the area. It has a good bill pay system and online banking site.
 
In the age of digital banking, a poor app or website experience can be an immediate deal breaker for many. Moreover, your hard-earned money deserves to be in a place that offers you competitive interest rates and seamless digital experience.

Here are some compelling reasons to consider switching:
  1. Better Interest Rates:
    As you rightly pointed out, 0.15% APY isn't competitive. Online banks like Ally, for example, often offer significantly higher APYs on savings accounts. Even if you don’t have a lot saved up right now, once you start growing your savings, this will matter more.

  2. User Experience:
    If you're going to interact with your bank primarily through an app or a website, the interface needs to be intuitive, secure, and efficient. Big banks have started to catch up with the trends, but online-only banks, given their digital-native nature, tend to lead the pack.

  3. No (or Lower) Fees:
    Many online banks have fewer overheads compared to brick-and-mortar banks, so they can afford to offer no minimum balance requirements and fewer fees. This is something you should look into, especially since you're maintaining a balance just to avoid fees.

  4. Loan Refinancing:
    If you're unhappy with your current credit union, check if other banks offer better interest rates or terms for car loans and credit cards. This could potentially save you a lot in the long run.

  5. Employer Compatibility:
    Since your employer banks with US Bank and you've had positive experiences in the past, there's merit in considering it. Having a bank that aligns with your employer can sometimes simplify the direct deposit process and offer additional benefits.
However, be mindful of a few things:
  • Transition Costs:
    There might be some costs or fees associated with moving, such as potential penalties for early loan repayment. Make sure to read the fine print.
  • Building Relationships:
    Over time, having a good relationship with a bank can lead to better loan offers, higher lines of credit, etc. So, choose a bank where you see a long-term fit.
  • Customer Service:
    Look into reviews specifically about customer service. Being digital-first doesn't always mean better service.
Your financial well-being and peace of mind are paramount. If you're unhappy with your current setup, you absolutely should explore and consider a switch. With so many options out there, there's definitely a banking solution that will fit your needs perfectly. Don't settle for less!
 
Strongly consider Wealthfront or Betterment if you care at all about security. Most banks only use SMS for two factor authentication. If you are the victim of a port scam or SIM swap, they can clear your accounts out. Wealthfront and Betterment use TOTP (think Google Authenticator) which is significantly safer than using SMS 2FA.
 
alarmguy said:

Nationwide Digital Banking, Credit Cards, Loans | Alliant Credit Union

Alliant Credit Union gives you more for your money with online banking, award-winning savings and checking accounts, credit cards, and loans.
www.alliantcreditunion.org www.alliantcreditunion.org
and call it a day.
Everything works as it should.

If you had some savings https://www.cit.com/cit-bank/bank for best interest rates though the App isn’t as good as Alliant.

These are online banks.
Click to expand...
This is why I like Fidelity.
 
I like my stock trading platform interest account. Yeah it's only 4.9% but it goes up with the fed and unlike other ripoff banks it's FDIC insured to $2.5 million and all your dollars get 4.9 ,%... And with the app you get daily interest updates on your pennies.. Robinhood is great for amateurs too and I like it because it's simple...
 
Zee09 said:
I like my stock trading platform interest account. Yeah it's only 4.9% but it goes up with the fed and unlike other ripoff banks it's FDIC insured to $2.5 million and all your dollars get 4.9 ,%... And with the app you get daily interest updates on your pennies.. Robinhood is great for amateurs too and I like it because it's simple...
Click to expand...
Can you buy 3 month CDs?

5.25 to 5.35%
 
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