What kind of bank account should I open?

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TheRedHare
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Joined: Tue Dec 20, 2016 4:40 pm
Location: Atlanta, GA

What kind of bank account should I open?

Post by TheRedHare »

So I currently only have 1 local bank account that I've been using for the past several years, but the problem is that its no longer convenient to get to since the nearest one to me is now about an hour away.

I'd like to open an account with a new bank that would be close by, have a decent interest rate on savings accounts, and is open on weekends. I've thought about using a large bank like Bank of America, or Wells Fargo. I've also looked into online banks like Barclays.

What do you guys suggest? Or what are factors to consider when deciding to open up a new bank account?

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Seppia
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Location: South Florida

Re: What kind of bank account should I open?

Post by Seppia »

Wells Fargo seems to have made a pledge to scam all of their customers, I’m not sure I would give them my money.
When in the USA I used Chase and was happy.
I heard the best yield on savings is with Goldman

sky
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Re: What kind of bank account should I open?

Post by sky »

A local credit union and a Schwab account.

chicago81
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Location: Chicago, IL

Re: What kind of bank account should I open?

Post by chicago81 »

Ally online bank is excellent. Completely free/no-fee checking and savings accounts, with very good savings account rates. They reimburse up to $10 foreign ATM fees per month too. No physical presence, so you wouldn't be able to get cashier's checks or do cash deposits though. (I keep a Chase account for that -- there are Chase branches on nearly every block where I live.)

Dream of Freedom
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Location: Nebraska, US

Re: What kind of bank account should I open?

Post by Dream of Freedom »

Probably a checking account. Checks are a bit old school, but can come in handy if you ever transact with ordinary people who have no access to a certain credit machine.

A credit card account with cash back or points is nice but not essential. You can set it up to automatically pay it off in full every month. You build your credit score in case you need a mortgage down the line and pick up some cash back.

Pay attention to fees for any accounts you open regardless.

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Mister Imperceptible
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Re: What kind of bank account should I open?

Post by Mister Imperceptible »

I have had a local credit union with a military affiliation for over 10 years. Rock solid and the only fees I have ever been charged were where I messed up and overdrafted, and they have refunded the fee every time I have called as a courtesy.

I have used Ally online savings and checking the last few years as an account when traveling for work. No fees and again they have refunded me my mistaken overdrafts. This is my “pass-thru” account, and secondary. I take pictures of checks to make deposits. The extra interest is a bonus, but I feel my funds are safer with the credit union. Ally has free ATMs everywhere for members but I have never used them.

What Seppia said about Wells Fargo applies to Bank of America. I had set up a BoA account because my property manager uses it, but they started charging me $25 maintenance fees monthly after my account dipped below $10,000, and customer service is completely inaccessible via telephone. I had to go to the brick and mortar to get my refund and that only happened a few times before I lost patience, withdrew all funds, and asked my property manager to send me checks again.

Down with Big Banks.

Frita
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Re: What kind of bank account should I open?

Post by Frita »

+1 for a local credit union and thumbs down to big banks

We used Wells Fargo (Denver) and Bank of America (Tulsa). WF has many branches, just not in the south, but has a shady past. If you use BA, once a month you get free museum passes which can be a good value if you live in the city and travel. Neither had good customer service.

Now that we’re back the local credit union is so much better. We have a checking account that pays 4% interest monthly up to 15K with no savings account (Those other assets are elsewhere.). We get free checks since we’re 50 and a free debit/ATM card with reimbursed fees if we use it in a non-CU ATM. The CU is part of our community, supports local causes, treats/pays their emplees well, and has superior customer service. There are two branches in town.

Another thing I appreciate our local CU is that it encourages kids to save. Each time DS14 makes a deposit, he earns a “Cowboy Buck” (Yep, it’s Wyoming.) to purchase trickets or save up for other things like movie tickets, the local non-chain ice cream shop,etc. He can also buy money market CDS to make better interest.
Last edited by Frita on Sun May 19, 2019 11:12 am, edited 1 time in total.

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jennypenny
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Re: What kind of bank account should I open?

Post by jennypenny »

We currently have accounts with both Wells Fargo and a local credit union. While I prefer the credit union, DD is in China and DS is in Rapid City, so it's much easier for me to manage everyone's money through Wells Fargo accounts. When (*if* :lol: ) the kids start managing their own money, I'll give up the WF account.

I like Chase but they don't bank in my state. If they did, I'd probably try them.

Jason

Re: What kind of bank account should I open?

Post by Jason »

Due to their loss of prestige on Wall Street after the housing crisis, Goldman Sachs is pivoting into consumer banking. They are calling it Marcus after Marcus Goldman their founder. I recently watched a video on their history. It was interesting how they evolved from a retail lender (not retail as in consumer but retail in the business) into what they were until about ten years ago. Their big break was the IPO for Ford motor company. Any ways, I guess they are trying to gain traction through higher interest rates. I am stuck with JP Morgan Chase due to Mortgage. They suck. Refinancing was a nightmare. The worse I ever experienced was TD. I will never walk into a branch of their's again.

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Ego
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Re: What kind of bank account should I open?

Post by Ego »

I joined the United Nations Federal Credit Union after TheOldMan mentioned it in his journal. They are one of the few US issuers that prioritize PIN over signature as the default. This feature isn't all that important in the US, but when traveling it can be useful as kiosks (train tickets and other machine purchases) struggle with the US default chip & signature.

viewtopic.php?f=9&t=5102&p=122573&hilit=snoopy#p148495

They have refunded the ATM fees we've been charged when using the card internationally and the exchange rate is good.

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unemployable
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Re: What kind of bank account should I open?

Post by unemployable »

Jason wrote:
Sat May 18, 2019 12:39 pm
loss of prestige on Wall Street ... Goldman Sachs
citation needed


OTCW
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Re: What kind of bank account should I open?

Post by OTCW »

I recommend a local credit union as well. I have a checking account at one and an online account at Capital One with free checking and a money market. Capital one also has regular savings and CD options that are competetive.

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unemployable
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Re: What kind of bank account should I open?

Post by unemployable »

No, Goldman is still the premier IB. Ask anyone interviewing for IB jobs. Source 1 Source 2

That said, I would never go with someone that big for anything under like $10 million.

Anyway, sky has the correct answer, and you can probably just get away with doing everything through Schwab. I haven't used a traditional bank in years. I use Ameritrade but only because my first brokerage account was with Waterhouse and I'm too lazy to switch. Today I'd go with Schwab.

Jason

Re: What kind of bank account should I open?

Post by Jason »

Morgan Stanley has exceed Goldman in total assets and won the the Uber IPO despite GS having a leg up. The fact that a firm like GS is going into retail banking is telling in itself.

But I'll go ask anyone just in case.

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jennypenny
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Re: What kind of bank account should I open?

Post by jennypenny »

I think there's a regulatory reason that GS is eager to get into retail banking. Trump's election stalled the process IIRC, but I'm not an expert on GS or banking so...

I wouldn't put all my money into only one bank. I've been happy with Vanguard and their banking function would work for us, but I don't want all of my money in one place. I kind of like having my money spread around (in big and small places). One of the benefits of having FU money is having enough to keep it in several different places without straining cash flow or investments.

TheRedHare
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Location: Atlanta, GA

Re: What kind of bank account should I open?

Post by TheRedHare »

I'm thinking about joining the Navy Federal Credit Union since my dad is an AirForce Veteran.

I live in the city, so I'm not sure about any local credit unions. There might be one up by my parents which is about an hour drive, but if I found one I liked, I would need it to be accommodating for folks who aren't necessary local? (but I guess that would defeat the purpose of a LOCAL credit union).

take2
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Joined: Wed Jan 09, 2019 8:32 am

Re: What kind of bank account should I open?

Post by take2 »

As some others here, I also split up money into different accounts for different purposes. Unfortunately I haven’t found a good “one size fits all”.

1) Online “high-interest” savings (air quotes given rates for the past decade...) I use Capital One 360 as they bought out ING in the states a few years back and I never bothered to change. Some other options here, like Marcus or American Express. I currently get 2.00%, I think you can find slightly more. Most of these need a link to a checking account, which is covered below.

Link for comparison: https://www.nerdwallet.com/blog/banking ... -accounts/


2) Checking Account. I have a legacy with WF (from the old Wachovia) that’s technically still a student account as I never bothered to update. The scam didn’t affect me and I only use this as an in/out. My pay checks would come in, bills would come out, and the rest to savings (with a buffer of course). My particular account didn’t have any minimums or fees and I think that’s the key thing to look for here.

3) Checking through Investment Account. I use Fidelity for investments which has the added benefit of their Cash Management Account. It’s a slight interest (very low, but still better than WF) but the key thing here is they reimburse me for all ATM fees all over the world with no limits and no questions asked. I live abroad now so this is key. If I was starting from scratch I would use this as my only checking account. However, I’ve had the WF for so long that it would be more of a pain to switch everything around with no benefit as it doesn’t cost me anything anyway.

take2
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Re: What kind of bank account should I open?

Post by take2 »

Sorry, just reading the OP again and I should clarify that I personally don’t have a need to ever visit any of my banks in person so that’s a non factor for me.

Seems like you need to physically attend the banks? If so then my (2) above is the only one that can facilitate this. Can still add in (1) and (3) to get more return on your $$ and more flexibility in accessing it

Cheepnis
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Re: What kind of bank account should I open?

Post by Cheepnis »

I bank several places.

Local bank for direct deposit and branch accessibility if I ever need to see a banker (which is rare).

Other local bank because they had a sign up bonus and I haven't closed the account yet.

All America Bank, which isn't local and I don't have access to a branch, but their mega money market checking account is 2.5% on up to 50k. Comes with a debit card and it's where I've parked my FU money.

Also have a CD at a non-local credit union.

I used to bank at Chase and it was fine. Was mostly there because of the sign up bonus.

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