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"People also are willing to pay for convenience and simplicity" This is my reason for primarily banking at one of the large banks. I have my mortgage, checking and savings accounts all in one place and the physical bank and ATM is less than a mile away. That said, when I do have a large amount in savings I do move it to an online savings account with better rates.
So you have a single point of failure
Earlier quoted context omitted.
> when you get better service from credit unions and regional banks. Anecdote: I have an account at a credit union connected to my wife's job. They've been really hard to work with. When my wife lost her ATM card, it took like 4 different phone calls to convince them to mail a new one. When I tried to get new checks with our new address on them, that was hard too. They have an Android app, but it's buggy. Generally,…
I'd grant that what I like about my credit union is going to a branch. Big banks often do better with online banking and it is hard to beat the likes of Capital One and Citi for credit cards although lately there are programs that make it possible for small banks to offer reward cards.
Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks. I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and em…
Why don't you tell us the name of this specific bank so we can look into it?
Earlier quoted context omitted.
I'd grant that what I like about my credit union is going to a branch. Big banks often do better with online banking and it is hard to beat the likes of Capital One and Citi for credit cards although lately there are programs that make it possible for small banks to offer reward cards.
Aren't cards completely orthogonal from bank accounts though? Is there an advantage that I'm unaware of? I have a citi credit card and use a local credit union banking account without any issues at all from either one.
Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks. I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and em…
I have Chase and their app is excellent. And I love the fact that their branches are available in a lot of places. Finally, if I have any confusion I can either walk into a branch or talk to a human and get a response pretty quickly.
They’ve helped me arrange some fairly exotic transactions that there’s no way I would have been able to do on my own, but to get to that position, I had a decade long relationship with them, and they help me out even though I don’t have much money with them.
At Bank of America, you can get FDIC insured savings rates similar to high yield savings accounts via their preferred deposit savings account in Merrill Lynch. https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMO... The big catch is that you have to open it with $100k, but after you open it, you can reduce it to any amount you want and add back however much anytime. Might be useful for those wanting to keep p…
At Bank of America, you can get FDIC insured savings rates similar to high yield savings accounts via their preferred deposit savings account in Merrill Lynch. https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMO... The big catch is that you have to open it with $100k, but after you open it, you can reduce it to any amount you want and add back however much anytime. Might be useful for those wanting to keep p…
Short term t bills are better in your brokerage
Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks. I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and em…
Wells Fargo is an exception because they’ve been caught deliberately messing with their customers multiple times and also because they have horrible tech. I have Chase and their app is excellent. And I love the fact that their branches are available in a lot of places. Finally, if I have any confusion I can either walk into a branch or talk to a human and get a response pretty quickly. They’ve helped me arrange some…
They all have issues with following legal practices, some more than others but all are equally bad.
There isn't a good alternative, and unfortunately the Fed decided to remove the fractional part, of fractional banking so they have no impetus to actually change. Depository requirements were set to 0% in 2020, and the overages have balloooned by roughly 300% since that time according to the still required reporting which is just a matter of time until they sunset.
>“I’m old fashioned. I like to be able to see my money,” Mr. Kvendru said. “With brick-and-mortar banks, you have that feeling that it’s not going anywhere.” I haven't been inside a bank since 1997, when I opened an account with USAA. Since then I've moved on to other online-only banks. Since 1997 I've had mortgages, personal loans, home equity loans, multiple car loans, credit cards, CDs, and a myriad other banking…