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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: P1 on January 08, 2015, 03:29:32 PM

Title: Changing Banks
Post by: P1 on January 08, 2015, 03:29:32 PM
So I've had ChitiBank pretty much all my life now but this year they are going to start charging $25 a month unless you have 10k+ with them which sadly I do not at the moment. I've stuck with them all these years simply because I don't want the hassle. Anyway they aren't getting $300 a year from me so I need alternatives. Was thinking either Ally or whatever it is ING is called these days.

Also, once I set that up how much of a bitch is it to change everything over? Already fretting about my direct deposit and auto bill pay. What do I have to do to close the account?
Title: Re: Changing Banks
Post by: Numbers Man on January 08, 2015, 03:33:20 PM
Try Bank of America. I believe they require either $1,500 balance OR at least one direct deposit per month for a free checking account.
Title: Re: Changing Banks
Post by: themagicman on January 08, 2015, 03:33:46 PM
I have had ally for a while! I really like them and do not have anything bad to say about them. No fees at all and they reimburse ATM fees. They also have decent interest and have 24/7 customer support and web chat!

Also look into lake Michigan credit union. They pay 3% interest on up to $15,000. All you have to do is use the debit card 12 times a month and use direct deposit.

When I switch banks it wasn't too much work. Just changing the direct deposit and changing the account linked to my credit card payments!
Title: Re: Changing Banks
Post by: slugline on January 08, 2015, 03:44:36 PM
ING Direct is now "Capital One 360" -- pretty good for a mostly online experience and interest-bearing accounts. There are still a handful of instances where it's useful to maintain an account with an institution with brick-and-mortar presence -- a  local credit union could be just the ticket for that.
Title: Re: Changing Banks
Post by: Jags4186 on January 08, 2015, 04:09:02 PM
Wells Fargo waves your fee if you have a credit card wi them with over a 5k limit.  I had my original Wachovia visa from back when I was a freshman in college and that qualifies me for free checking
Title: Re: Changing Banks
Post by: Jags4186 on January 08, 2015, 04:09:26 PM
Also, try Charles Schwab free atm around the world and all fees reimbursed
Title: Re: Changing Banks
Post by: Freedom2016 on January 08, 2015, 04:55:27 PM
I switched from a brick and mortar bank that charged stupid fees over to Ally about six months ago and we have been really happy with them. Close to 1% interest on savings accounts, no checking fees, no overdraft fees, ATM fee reimbursement, and a tiny bit of interest on the checking account. Suck it, bank fees!
Title: Re: Changing Banks
Post by: Paul der Krake on January 08, 2015, 05:02:19 PM
Also, once I set that up how much of a bitch is it to change everything over? Already fretting about my direct deposit and auto bill pay. What do I have to do to close the account?
If you have a decent payroll company, it can be as easy as logging in to their website and writing the new account number and routing info in a box. ADP does it. If not, you probably call HR for them to do it and don't close the previous account until you see that first deposit go through.

Closing the Citi account should take you lose than 10 minutes. Just tell them why you don't want it and they'll send you a check.
Title: Re: Changing Banks
Post by: Will on January 08, 2015, 05:23:48 PM
Try Bank of America. I believe they require either $1,500 balance OR at least one direct deposit per month for a free checking account.

Oh my.  I didn't think anyone recommended BoA for anything (unless they worked there).

IMO, your best bet would be a local credit union.
Title: Re: Changing Banks
Post by: Kwill on January 08, 2015, 05:53:01 PM
I'd look for a credit union. There's no reason to pay for a checking account or a savings account.

Each credit union's membership is limited to certain groups, but there should be something you'd qualify for. With mine, I get interest-bearing checking (no minimum balance) and free checks (with just my name). The ATMs that I can use for free are fairly limited, so I use a debit card at the supermarket to get cash back.
Title: Re: Changing Banks
Post by: neo von retorch on January 08, 2015, 06:03:18 PM
I love my credit union. Awesome rates on balance transfers, car loans and mortgages (hopefully you don't have the first two of these - I no longer do, but back when I did, it was very helpful - $0 balance transfers with low rates was helpful when my hair was on fire) - savings/money market not currently worthwhile so I still use an online savings account (GE Capital but Ally, Barclay Dream or Capital One 360 is probably preferable if you use Mint.com). They refund ATM fees up to $20/month. And since it's member-owned, there's a sort of profit share. Since my mortgage is with them, I got $166 back this year (a percentage of my mortgage interest refunded.) It was more in previous years but my mortgage is getting smaller (woohoo!) Various other perks (if you have Android/iPhone you can do mobile deposits) but of course it will depend on your local credit union options and eligibility.
Title: Re: Changing Banks
Post by: Psychstache on January 08, 2015, 06:16:47 PM
I'd look for a credit union. There's no reason to pay for a checking account or a savings account.

+1

I found a CU that was available to everyone in the neighborhood, pays 2% on balances up to 10K, reimburses any ATM fees up to 20 per month (not really an issue for me anyways), and has an awesome online system.

I would start looking locally.
Title: Re: Changing Banks
Post by: PMG on January 08, 2015, 09:12:56 PM
I use cap 360.  It's alright. 

I hear great things about Simple online banking.  Tempted to try it. But not worth hassle since I like what I have.
Title: Re: Changing Banks
Post by: Bbqmustache on January 09, 2015, 04:27:03 AM
Another vote for credit unions.  Mine give me five cents back every time I use my debit card.  I don't like large institutions where a decision affecting me and my family may someday come from an operations center in another state.  People in in not only not knowing me, but not even knowing the area in which I make my home.

Credit Unions can be quirky, but the different compliance and regulatory rules the operate under allow them to service their members sometimes a lot better than a commercial bank, and all at a local level.
Title: Re: Changing Banks
Post by: furrychickens on January 09, 2015, 07:00:59 AM
I use a local brick and mortar for checking because the branch is really easy to bike to from my house when I need to deposit cash or whatnot, but nearly all of my cash lives over at CapitalOne 360. I've been with them for a long time, back when ING was pretty new. They're a fine option but Ally has more competitive rates right now if you're starting from scratch.
Title: Re: Changing Banks
Post by: viper155 on January 09, 2015, 08:34:07 AM
Do NOT switch to TD Bank.....they use some real cute accounting techniques. They hold your deposits until your outgoing money causes your account to dip below the minimum requirement and then they whack you with s $35 service fee.....It happened to me to the point where I was experimenting with this issue and I am certain this is what they do. I had 4 accounts there with an average balance of about 60k.Took my business to Cap I.
Title: Re: Changing Banks
Post by: Spork on January 09, 2015, 08:38:56 AM
Just wanted to be an additional +1 for "local" and "credit union."

Title: Re: Changing Banks
Post by: neo von retorch on January 09, 2015, 09:18:58 AM
Do NOT switch to TD Bank.....they use some real cute accounting techniques. They hold your deposits until your outgoing money causes your account to dip below the minimum requirement and then they whack you with s $35 service fee.....It happened to me to the point where I was experimenting with this issue and I am certain this is what they do. I had 4 accounts there with an average balance of about 60k.Took my business to Cap I.

This reminds me of one of my favorite features of my credit union. ALL deposits (mobile, UPost where you mail it in, ATM) are available immediately for withdraw! (Exception is if mobile image doesn't quite pass all automatic verification). Transfers between credit union accounts (your own accounts as well as with other members) is instantaneous on both ends of the transaction. Payments to credit card or car loan is instant. (Exception is mortgage which is processed ~9:30PM each evening.)
Title: Re: Changing Banks
Post by: Chester Allen Arthur on January 09, 2015, 10:00:33 AM
I have capital 360 new ING, and it's quite good.  I'm probably going to switch to Ally, though - they have a good track record and refund ATM fees.

If you need a brick and mortar branch, go to your local credit union.  There have been studies, and basically everything is better and cheaper at a credit union.
Title: Re: Changing Banks
Post by: Numbers Man on January 09, 2015, 10:04:48 AM
Try Bank of America. I believe they require either $1,500 balance OR at least one direct deposit per month for a free checking account.

Oh my.  I didn't think anyone recommended BoA for anything (unless they worked there).

IMO, your best bet would be a local credit union.

I don't work there. That's the fact jack. https://www.youtube.com/watch?v=2o0V6VPX_E0
Title: Re: Changing Banks
Post by: Scandium on January 09, 2015, 10:49:02 AM
I looked into local banks/Credit units but didn't find any of them to be that great. Minimum balances, limited fee-free withdrawals, poor rate etc. Maybe just this area..?

Instead I'd recommend charles schwab. No fees (seriously; banks still charge fees??), and they'll reimburse unlimited fees from any ATM. No international fee either. Plus they're great for your taxable investments. 
Title: Re: Changing Banks
Post by: ysette9 on January 09, 2015, 10:56:51 AM
I have almost my entire life with USAA and have been very pleased. No fees, stellar customer service, and refund ATM fees (since they don't operate their own brick-and-mortar locations except in Texas). Their online interface is excellent and the app keeps getting better and better.
Title: Re: Changing Banks
Post by: projekt on January 09, 2015, 11:00:16 AM
You can also do a lot with a Fidelity Investments brokerage/cash management account.
Title: Re: Changing Banks
Post by: SpareChange on January 09, 2015, 11:21:34 AM
Used Ally for several years (from back when they were still GMAC Bank till about a year ago). No complaints. Moved other to TD Ameritrade to simplify things (already had an IRA there). No complaints there either.
Title: Re: Changing Banks
Post by: Blonde Lawyer on January 09, 2015, 01:04:36 PM
Do NOT switch to TD Bank.....they use some real cute accounting techniques. They hold your deposits until your outgoing money causes your account to dip below the minimum requirement and then they whack you with s $35 service fee.....It happened to me to the point where I was experimenting with this issue and I am certain this is what they do. I had 4 accounts there with an average balance of about 60k.Took my business to Cap I.

That must depend on what type of account you have.  I'm fairly certain I have never had a bank fee with TD Bank and we keep our checking out balance pretty low.  I've had an account for 15 years though so maybe I'm grandfathered in.

I'm also a fan of Capital One 360 (old ING). Edited since I answered my own question.  If you go this route, use a referral link and you get $50 if you open a checking and $25 if you open a savings account as a bonus.  (If you use mine, about to be added to my Sig, I also get $25).
Title: Re: Changing Banks
Post by: FLBiker on January 09, 2015, 01:58:49 PM
Try Bank of America. I believe they require either $1,500 balance OR at least one direct deposit per month for a free checking account.

Oh my.  I didn't think anyone recommended BoA for anything (unless they worked there).

IMO, your best bet would be a local credit union.

+1

Switching Citi for BoA seems like switching Coke for Pepsi.  And I've had a great experience with my credit union.
Title: Re: Changing Banks
Post by: Numbers Man on January 09, 2015, 02:55:08 PM

Switching Citi for BoA seems like switching Coke for Pepsi.  And I've had a great experience with my credit union.

Is that fact or fiction about Coke for Pepsi?
Title: Re: Changing Banks
Post by: xenon5 on January 10, 2015, 06:30:07 PM
Changing banks is really easy, especially if you can change your direct deposit options online.  It can take 1-2 pay cycles before the change applies, however.

I use a combo of Ally and Santander.  Being able to use any ATM without worrying about fees is truly liberating, and you get to feel like you're part of a secret club every time you take out cash at a random bar or bodega. 

Here's my full concoction:

1)Ally checking account for one-time payments
2)Ally money market for all ATM withdrawals (higher interest than checking and unlimited ATM transactions)
3)Ally savings for savings and recurring bill payments

4)Santander extra20 to get $20 per month.  $750 per direct deposit twice a month. The rest goes to Ally.

You need to deposit $1500 per month and use their bill pay system twice a month to get the $20.  You would need to have $24k in an ally savings account for the same rate of return and it requires only slightly more work than doing everything with 1 bank.  I only just opened this account so we'll see how it goes.  They have physical branches, but only in the Northeast from what I understand.