Author Topic: Difference between local bank vs national bank  (Read 28911 times)

mrs sideways

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Difference between local bank vs national bank
« on: May 27, 2023, 01:19:25 PM »
As mentioned in another thread, my dad had a stroke and I’ve taken over his finances. What I wanted to talk about was the vastly different experiences I had dealing with his banks. He had accounts spread across three of them: A local regional bank (with a dozen branches in one geographic area), a larger regional bank (with a hundred branches spread across a few states), and a national bank, a bank of America, you might say. Here’s what happened.

ROUND 1: I filled out the state’s generic “Power of Attorney for Property” form, got it notarized, and walked into a branch.

Local Regional: “Oh no, Bob had a stroke? We knew Bob! Let’s make a copy of those papers and put you on all his accounts.”

Large Regional: “We’ll send the papers to our lawyers.”

National: “We’ll also send the papers to our lawyers.”

ROUND 2: Rejection!

Large Regional: “Our lawyers say it’s not valid because it’s missing a name on this space in the middle of the paragraph.” Me: “The ellipses right here? Crap. I’ll be back.”

National: “Our lawyers reject it but don’t say why.” Me: “I think I know why, give me a week.”

ROUND 3: I came back with a new notarized PoA.

Large Regional branch manager: “That looks good enough to me, I’m going to add you to the account myself.”

National: “Our lawyers have rejected it again.” Me: “Why?” National: “They didn’t say.” Me: “They didn’t say? Then what the hell am I supposed to do?!” National: (Shrug) Me: “How can I close this account?” National: “I don’t know. Also, we’re now charging you $20 monthly fees for a low balance.”

THE END: Dad still didn’t remember his passwords, but his phone has them saved, so I did an online transfer out of the National account into the Local Regional account, which I had full access to. I then had to fly out to where my dad is, catch him on a good day, and call into the national bank so he could tell them over the phone to close his account. If the stroke had left him alive but non-verbal I have absolutely no idea if I’d ever have been able to liquidate the national account without hiring my own lawyer. I'm simplifying the story here as well; in real life dealing with the national bank took hours and hours of meetings and repeatedly going into the physical branch because the guy wouldn't return my calls or emails and walking into his office was the only way to make him actually respond to me.

MORAL OF THE STORY: Stick with local banks or credit unions! Emergencies happen, and the bigger the bank is, the more work it will be for those taking care of you.

Cranky

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Re: Difference between local bank vs national bank
« Reply #1 on: May 27, 2023, 01:31:18 PM »
We actually did go to an attorney when we needed durable power of attorney for my mom (and the attorney knew my mom and was on board with our plans.) We ended up not having problems at any level and if anyone had questions we referred them to our attorney, the mere mention of whom seemed to make people more amenable to our relentless March towards moving mom somewhere safer.

Catbert

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Re: Difference between local bank vs national bank
« Reply #2 on: May 28, 2023, 01:00:06 PM »
I've always hated that particular nationwide bank coughofAmericacough.  When my Dad died we had a similar problem with accounts at that bank.  All were TOD so really all you should need is a death certificate.  However, the local branch could/would do nothing and just  us a central mailing address.  Things kept disappearing in the mail - and this was 15 years ago when the mail was very reliable.  It took several submissions over 6 months to finally get money disbursed.  Good thing no one really needed the money.

Your experience with the local regional bank and Bob reminds me of my MIL's experience after FIL died.  In her 70s she had to pay bills and balance a checkbook for the first time.  Hard times.  Every month she went into the bank branch in her small town and a particular employee would balance the checkbook for her.   

reeshau

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Re: Difference between local bank vs national bank
« Reply #3 on: May 28, 2023, 02:29:39 PM »
Don't forget the interest you give up, in exchange for the "convenience" of dealing with them!


sonofsven

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Re: Difference between local bank vs national bank
« Reply #4 on: May 28, 2023, 04:50:04 PM »
I also dislike B of A.
They had a pretty early online banking website that I used. I've always kept my working checking account pretty tight and never had an overdraft, until using their web pay setup.
They would re-order the sequence of deposits/withdrawals to make it appear you overdrew the account, and then push through a large withdrawal first so every other withdrawal would be another overdraft charge.
The first time it happened I raised hell with them immediately and complained about their practices, and they took off all four charges.
The next time it happened and I called and complained they refused to remove the overdraft charges because " it looks like you have a history of overdrafts"!
I told them I was closing the account, what they were doing was wrong, and I was surprised no one was filing a class action lawsuit.
So I opened an account with USAA, which I still have.
Two years later I got a notice in the mail about a class action lawsuit against B of A.

TomTX

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Re: Difference between local bank vs national bank
« Reply #5 on: May 29, 2023, 08:48:30 AM »
I also dislike B of A.
Used properly, BoA is beneficial. They paid me $1,000 to move my IRAs over to Merrill Edge years ago - and I have yet to pay any fees on any of that.

The ongoing benefit was due to signing up for their Preferred Rewards program and linking the Merrill Edge balances. The main benefit for me is a significant increase in credit card cash back, increasing the cash back by 75%. It also effectively removes minimum balances on bank accounts - I can have $1 in checking and pay no maintenance fee.

Customized Cash Rewards card:
Online shopping*: 5.25% instead of 3%
Grocery/Costco/Sam's: 3.5% instead of 2%
NOTE: these two are capped at a combined $2,500 spend per quarter.

Premium Rewards card:
Travel: 3.5% instead of 2%
Everywhere else: 2.6% instead of 1.5%.
NOTE: There is an annual fee, but it's offset by an annual travel credit and reimbursing Global Entry every 4 years.

*You can choose one of several categories for the 3%/5.25% cash back. Online makes the most sense for me.

Dee18

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Re: Difference between local bank vs national bank
« Reply #6 on: May 29, 2023, 10:57:08 AM »
I had an almost opposite experience.  The regional bank was impossible...rejecting a properly drafted POA, refusing to send printed statements to my mother and also allow online access, and convincing my 96 year old mother to invest in an awful investment. (She was accompanied by my sister on that visit.)  Fortunately I learned of this investment quickly when my mother asked me why her balance was going down so fast when she wasn't writing many checks.  I ended up moving my mom's money to a national bank that has been great to deal with.

By the River

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Re: Difference between local bank vs national bank
« Reply #7 on: May 30, 2023, 01:31:22 PM »
I use a podunk local bank (under 20 branches) and a credit union.  The biggest advantage is knowing the people at the branch and office, another one is that all scam emails say "Your (wells-fargo/BoA/Citibank, etc) account has been compromised, please click here..."