The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: NewDay1 on June 19, 2019, 09:24:13 PM
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Hello Mustachians,
I've started to use Ally online and my credit union more heavily as the big banks just feel bad. What are you all doing? Do you still use B of A, Chase, Wells, etc.?
Thanks for your thoughts.
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yes, still use a TBTF bank for multiple reasons. I've never had an issue with them, although many others have.
For many of the account services I need, it's easier to talk to them in person. Many of the online banks (I've tried CapOne and a couple of others) don't have the services or accounts that I need.
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Yes, because there are services you can get at a traditional bank that aren't available from online banks. You don't need them often, but when you do, you do. Examples: getting a medallion stamp, bank check for a home downpayment that you really don't want to risk getting lost in the mail, depositing a foreign check.
IMHO they are best used paired with an online bank - I use Chase and Fidelity. To avoid Big Bank Fees (that can eat you alive) you can find a way to automate a process that meets their criteria for free checking and doesn't risk overdrafts. For example, with Chase you can direct deposit your monthly paycheck then auto transfer it to your online bank. I think direct deposits from your online bank might work too, but I haven't tried that.
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Question, for protection - does it make sense to bank with multiple banks so that if any went under you will still get a full or good amount because of FDIC.
Also, if FDIC applicable to non American in American banks? Thanks!
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I keep the bulk of my cash savings/emergency fund money in an online savings account.
But I keep a low balance (generally <$5000) checking account at a traditional bank with brick and mortar locations nearby. There are no fees and I can utilize all of the services that come with an account.
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We use two credit unions and Ally. In the past we have had Wells Fargo and Chase accounts, but I haven't seen the need to keep them.
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Question, for protection - does it make sense to bank with multiple banks so that if any went under you will still get a full or good amount because of FDIC.
Also, if FDIC applicable to non American in American banks? Thanks!
If you keep more than $250k ($500k Joint account) then yes, it would make sense to keep it at separate banks. I don't about your question about non-US citizens.
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Question, for protection - does it make sense to bank with multiple banks so that if any went under you will still get a full or good amount because of FDIC.
Also, if FDIC applicable to non American in American banks? Thanks!
If you keep more than $250k ($500k Joint account) then yes, it would make sense to keep it at separate banks. I don't about your question about non-US citizens.
Thanks Terran
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Also, if FDIC applicable to non American in American banks? Thanks!
Yes.
https://www.fdic.gov/deposit/deposits/brochures/your-insured-deposits-english.html
Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.
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Also, if FDIC applicable to non American in American banks? Thanks!
Yes.
https://www.fdic.gov/deposit/deposits/brochures/your-insured-deposits-english.html
Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.
Helpful, appreciate.
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Also, if FDIC applicable to non American in American banks? Thanks!
Looks like you're in luck:
https://www.fdic.gov/deposit/deposits/brochures/your-insured-deposits-english.html
"Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC."
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I use Ally + credit union at work.
I still have my mortgages through Wells.
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I recently learned that one can keep more than $250000 in one bank and still have it be FDIC insured. For example, you can have one account with no named beneficiary and one with a named beneficiary (also known as POD, payable on death). Each of those accounts would be insured up to $250000.
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I have had a credit union for over 25 years. I absolutely love the lower fees. Before that I had Well Fargo, it was just more expensive. Now I also have Ally for my emergency fund because it has a much better rate and making transfers is easy.
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Still use big banks? I've never used them; well, almost never for anything other than credit cards. I grew up on a local credit union and still keep an account there for local needs. Wife was using Washington Mutual and we had our primary joint account there for the first few years of our marriage. Moved primary banking to online bank for better savings rate and online service. When Chase bought Washington Mutual we closed our deposit accounts there rather than jump through the hoops to avoid the fees.
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I've been with a big bank ever since they bought out my medium sized bank. Kinda love it. Branches everywhere. Free notary and medallion stamps. Great app with check deposit feature. Easy to link personal and biz accounts, great selection of credit cards, manage it all from one online portal.
Only complaint is their interest rates are absolute garbage. You need a separate online bank for savings.
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I keep about $500 at Bank of America in case I need to use an ATM or need the services of a physical bank(notary/cashier's checks/etc.). They also have my mortgage at 2.75% so the checking account is free. Prior to buying a home I never saw myself banking with BofA, but 2.75%!?!?!
Capital one 360 is my online bank, where my direct deposit goes, and where I pay all my bills. I tend to keep about 2k there.
I-bonds and the Vanguard prime mmkt are my emergency funds.
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Yup, with BOA. I've heard the complaints, but have never had as issue with them.
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I've tried not to put our money in the hands of institutions large enough that they jerk their customers around with relative impunity (like Wells Fargo) but as we've just started travelling all over the US we've discovered the limitations of the regional bank (BB&T) we've used forever. We'll likely end up converting to Chase.
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I totally use big banks. Mostly for the signup bonuses on their accounts. :D
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Question, for protection - does it make sense to bank with multiple banks so that if any went under you will still get a full or good amount because of FDIC.
Also, if FDIC applicable to non American in American banks? Thanks!
If you keep more than $250k ($500k Joint account) then yes, it would make sense to keep it at separate banks. I don't about your question about non-US citizens.
With that much in cash, I'd look at Treasury only money market accounts or treasury bills bought directly at an online brokerage. Treasury only is as safe as FDIC, perhaps even more so. If you're happy with just SIPC insurance, you could also buy CDs at said brokerage.
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I have a hybrid approach: online checking accounts for convenience, and one regional or almost-nationwide (there is no such thing as a truly nationwide bank) for the occasional in-person transaction.
I don't get why people love credit unions so much. I've never seen an offering so compelling that I couldn't get at a traditional for-profit institution. They like to coat everything in "local community" marketing to get unsophisticated consumers to switch, but don't offer any value for those who know how to shop around.
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I use a big bank, just because I’ve been using them for the past 13 years and it seems like a hassle to switch since all my online accounts, payments, etc. are set up through them.
I don’t use any bank services aside from checking/savings and I don’t have any fees with the bank I use. I do have a separate Charles Schwab account from when we went to Asia and I wanted a debit acct with $0 atm fees worldwide. I also have a very high yield savings account with American Express.
If I used any banking services aside from my very basic needs, I would consider going elsewhere. Just hasn’t been worth the hassle.
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I used TD Bank for a long time because they had free coin counting and 7 day branch banking. However, I recently moved to a smaller local bank that has 10x the interest rate.
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I have a hybrid approach: online checking accounts for convenience, and one regional or almost-nationwide (there is no such thing as a truly nationwide bank) for the occasional in-person transaction.
I don't get why people love credit unions so much. I've never seen an offering so compelling that I couldn't get at a traditional for-profit institution. They like to coat everything in "local community" marketing to get unsophisticated consumers to switch, but don't offer any value for those who know how to shop around.
For me:
1. They offer an amazing rate for my no fees checking account (3.5% on up to 50k)
2. While it pretty much never comes up because I am mostly cashless, the refund ATM fees up to $30/month.
3. They have a branch right around the corner from my house with a medallion and notary signatory.
Can't find anything like that at the big boys in my experience.
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I recently signed up for a "Redneck Bank" checking account, the website is a hoot! I get 3% interest on checking and best of all a real PERSON, answered the phone when I called. Also, can't beat the funny looks I get when I handover the card, has a smiling donkey on it :)