Is it time to break up with your bank?
Is your bank serving your needs?
Due to a lot of consolidation in the industry, some of the banks have gotten so large, they don’t care about their customers anymore.
A client came to me struggling with her bank that had recently had some major service misses, which were costing her a lot of time, money, and stress.
Since I was already supporting her in choosing a new bank and making the transition, I figured I’d share the resources with you. (Jump down if you don’t care why I feel so passionately about this.)
Fees, Fees, Fees!
About 15 years ago, I was frequently getting letters in the mail from the bank I used back then that has the same name as our country. These envelopes with little stylized flags printed on them contained letters telling me about this fee and that fee, some were forewarnings and others had already happened.
When I looked at my statement, sure enough—a couple of dollars here, a couple of dollars there were going to fees and service charges. That adds up! I asked myself if there was a better option and what service did the bank really provide me to justify this much for things I often didn’t have control over.
That was when I decided to break up with my retail bank. I transferred all of my assets someplace else and have saved myself a lot of money and frustration.
As it turns out, my original bank is also one of the largest lenders to fossil fuel extractors in the country.
Better Options
Here are some reasonable options for a new bank, depending on your needs and goals:
Socially responsible bank: Amalgamated
Fossil-free B-Corp bank: Beneficial State Bank
Online bank with solid return on savings and nearly no fees: Ally
My Ally referral link - you could get up to $125 If you use my link to open and fund an account and stay with Ally through mid-July.
Brokerage firms—such as Charles Schwab, Fidelity, Vanguard—also likely have a cash management account that works like a checking account, is FDIC insured, can receive direct deposits, and has bill pay and check writing features.
How to decide
Before committing to a new bank, do some research:
Do they have all the services, features, and products you’ll need?
What fees do they charge?
What yield will you get on your savings? (Good ones without too many restrictions right now are ~4.3 - 4.8%)
How’s their customer service and their online banking portal?
How do they measure up on sustainability and ethical considerations: bank.green & Might Deposits.
While it’s never fast or easy to leave a bank, with so much being online, it’s fairly straightforward to open or close an account, reroute direct deposit and bill pay, and avoid the near extortion that comes with many of the big banks.
One more thing to keep in mind, while you’re transitioning banks, it’s a good idea to keep the old account open for a couple of months to ensure you got all of your regular deposits and withdrawals transferred over.
