Where do you bank and why? 2024 Edition

[jdubsdubs]

2023 was an interesting year for banking with the collapse of a few high profile banks (Silicon Valley Bank, First Republic, etc.), some notable bank mergers (Bank of the West became BMO and Union Bank became U.S. Bank), and according to the FDIC, 108 fewer commercial banks exist in Sep 2023 vs. the prior year. In addition, according to EPFR, investors moved $1.2 trillion into U.S. money market funds since the beginning of 2023 with total assets reaching $6.4 trillion.

Against the backdrop of the year behind us, I'm curious where you bank in 2024 and why?

Did you make any changes to your banking relationships such as moving to a One Stop Shop?

If you moved money to money market funds, what's your strategy and how will you keep your personal banking finances simple in 2024?

[jebmke]

I use USAA. I mainly use banks for transaction processing, not as a place to house money.

[Barsoom]

Credit Union associated with my MegaCorp. Been a members for nearly 40 years.

-B

[Toons]

Capital One
Convenience
Online

[lthenderson]

I use a bank with a large brick and mortar presence in my part of rural America. I mostly use their online platform for day to day stuff but like mentioned above, still like having nearby brick and mortar stores for convenience, lockbox and for certain transactions that aren't about increasing wealth. For the latter, I use my online Vanguard accounts to store cash reserves.

[skipper]

I use a bank with a large brick and mortar presence in my part of rural America. I mostly use their online platform for day to day stuff but like mentioned above, still like having nearby brick and mortar stores for convenience, lockbox and for certain transactions that aren't about increasing wealth. For the latter, I use my online Vanguard Fidelity accounts to store cash reserves.

Ditto

[swong]

As a resident of NYC our household uses both CitiBank and JPMorgan/Chase simply because it's close to home and is real convenient. We avoid all the regional banks even though they offer the highest savings and CD rates. Reasons include the fact they offer the highest rates because there is a high probability they are undercapitalized, have limited "brick and mortat" locationscompared to the "Big 3", and have a tendency to close unexpectedly.

[flyingcows]

What do people use banks for these days?

I've only ever used banks for checking accounts and credit cards, I use brokerage accounts for my investments and savings. I don't understand the appeal of a bank savings account or CDs compared to comparable risk products available on brokerages that will often have superior yields

How does a bank get competitive over customers with only a checking account? I just went with a big bank that was unlikely to collapse with the option to do everything I needed through the banks app/website so I would never need to visit a branch for anything

[Laundry_Service]

Fidelity in a money market and Bank of America for B&M branches and their Preferred Rewards program

[CuriousGeorgeTx]

We use Ally as our primary transactional bank. They are online-only, but that has never been a problem for us.
Checking account interest (0.1%) is low, but it does the things a checking account needs to do well: bill pay, ACH credits and debits.
We keep some near term funds in their online savings accounts (currently 4.35%).
Major cash reserves are in TBills at Treasury Direct.

If Schwab had something like an online savings account, we would move our transactional activity there, but we like the online savings account for bucketing savings for coming expenses. Use Schwab ATM card when traveling internationally.

[beyou]

Disappointing to some, but I don't keep changing banks and never shop bonuses.

A bank to me is a utility to pay my bills, nothing more.

And it is NOT a savings option to me, not even when money market funds were paying near zero.
I like the simplify of investments with my broker and bill paying/credit cards at my bank.
I like to use a best of breed solution, at least best for my preferences (no bank is really "best").

But this is NOT how banks look at us.
Before we open an account, we are sales leads (hence bonuses to move).
After we open an account, we are a risk (to their back office, and risk staff).
You are a risk for money laundering, fraud, terrorism funding etc.
Having an account opened for many years and a regular pattern of deposit paycheck/pay bills/cycle and repeat sets off no alarms.
Having a new account and/or unusual activity does set off alarms and may have your account frozen !
There are MANY reports online of having your bank (and even brokers such as Fidelity) freezing your account while they investigate, or even shut down your account. For this reason, not good to bank bonus shop, nor rate shop. Pick a bank with a good reputation for a combination of service and decent fees/rates, and stick with it until they give you a reason to change.

I have used FirstIB.com (First Internet Bank) since before 2000 (when they actually were among the 1st internet banks).
Great service, low/no fees, decent rates on accounts for a bank.

I have used Citibank since the late 1980s, they are adequate most of the time.
The bad, customer service on phone/chat is not good.
The good, great branch banking, the service at branches are great.
Got medallion signature guarantees easily multiple times, with a smile.
Do not bank here unless you live and/or work near a branch, IMO.

I use Vanguard money market funds for savings/emergency funds regardless of how money market funds and HYSA are doing.
Vanguard's mmkt funds have always been competitive and well run, safe stores of value.

I have used Treasury Direct for some of my emergency savings bonds too, but due to tax reasons and a decline in service, I am migrating away from this long standing relationship. But it is a good example of my comments above regarding risk. I opened a new trust account there, with intention to transfer from an individual non-trust account. My new account was treated as a hostile fraud risk, locked until I got a medallion signature guarantee on some forms to identify myself, despite fact I had a request in to transfer all my assets from a long standing account. Took them about 15-20 weeks to unfreeze new acct and then transfer my savings bonds. They were never this slow years ago, and I suffered the "new customer" risk treatment despite not being a new customer. These funds are moving to the above existing accounts to consolidate to those who have treated my better for decades.

[jdubsdubs]

- Deleted -

[Charles Joseph]

My Fidelity CMA, and our (DW and mine) local brick and mortar bank, which I actually step into about once per year. For household bills we both deposit funds into our joint B&M checking account and I pay bills from there. Mostly it's one monthly credit card bill (Fidelity 2% cash back) along with a couple of other bills we can't put on the card (mortgage, HOA fees, taxes).

The CMA is really convenient for me because it's also my taxable brokerage account and all dividends go into my Core FDIC fund there. The local bank is just easy to use and we both want a local presence at a local bank.

[bloom2708]

Local brick & morter bank - Ease of use/access, terrible interest rates, .1% on checking .3% on MM savings. They don't want/need our munny.

SoFI online bank - Great app, 4.6% on Savings. .5% on checking only. A bunch of good features in the app.

[tomd37]

I have used the Navy Federal Credit Union for my checking account for the past 63 years. Early on writing checks and over the years converting to online payments. Very happy with their service and online banking until now. They just changed their online format and I strongly disagree with the changes and have responded to their requests for comments.

[cheese_breath]

Same as 2023.

Credit union for checking and monthly expenses.
Ally Bank for all else.

Move money between them as necessary.

[supalong52]

Charles Schwab. We started b/c of the ATM fee reimbursements. Stayed because it was way better than Citi.

[TomatoTomahto]

For decades my wife has banked at BoA because of inertia, but we do like their cash back credit card.

I have banked at TDBank for years, using it mostly to funnel SA, pensions, and such to Schwab.

We also have a local brick and mortar bank for ATM.

[tetractys]

Against the backdrop of the year behind us, I'm curious where you bank in 2024 and why?

Did you make any changes to your banking relationships such as moving to a One Stop Shop?

If you moved to money to money market funds, what's your strategy and how will you keep your personal banking finances simple in 2024?

I’m partial to federal credit unions, one at a time. I have 3 reasons, free this that and the other.

[djmbob]

I have been a member of USAA since 1978. Like combining banking and insurance and they give great rebates on insurance through their Subscriber Savings Accounts - even more after 40 years!
Also have an account at Pentagon Federal. Good certificate rates including the one I bought today offering 5.35% for 15 months.
Cheers,
Ray

[dink2win]

Bank of America for checking, ATMs, and Preferred Rewards credit card.
It also connects with Merrill to give me free trading for my investments (CMA, Roth IRA, Preferred Deposit for my EF). Its also nice because you can transfer funds between them real-time. No need to wait a couple days for cash to transfer and settle.

There are some other banks active at any given time due to bonus churning, but the funds in them are not for long term, usually get moved out once the bonus is obtained.

I also keep an Ally account alive for their no penalty CDs as needed (if interest rates start going down, would move my EF here).

[chw]

Fidelity CMA. Seems to have it all...

[Raycpact]

I'm a small business owner. I use local bank that has office across the street from my business with tellers that are neighbors for personal and business. They serve my checking and borrowing needs. For credit I use multiple business and personal cards to maximize points and spread credit risk. Relationships are really important in small business.

[GeMoney]

Chase-checking account. This is a legacy account from about 3 or 4 mergers ago over multiple decades. I kept it because I wanted something local for ATMs and medallion guarantees.

Marcus for HYSA and CDs. Competitive (but not always the highest) interest rates, same-day ACHs and can elect CD maturity instructions online in advance. Not sure what Goldman Sachs is going to do with them, but I'll cross that bridge when I get there.

[nisiprius]

We are under FDIC limits and have no concerns about safety in an FDIC member bank or NCUA member credit union. I think the press did a lousy job of explaining Silicon Valley Bank to the public and left many people with the false impression that ordinary personal accounts are at risk in banks and credit unions.

We moved about 35 miles in 2022 to be closer to the grandkids. We currently use:

1) Capital One 360 (an online-only bank), for reasonably high rates on savings and CDs, and as a "hub" to do ACH pulls and pushes to everywhere else.

2) Brick-and-mortar bank "N" in previous town.

3) Brick-and-mortar bank "D" in previous town.

4) We are shopping for but have not yet opened a nearby brick-and-mortar bank to replace "D."

"N" has reasonable, non-insulting interest rates and has had for decades. Having moved we now use it mostly online, but a couple of times we have shrugged and driven 35 miles to do in-person things. But it does not redeem paper savings bonds and we have a bunch. No immediate plans to redeem any soon. It's also our bank for signature guarantees if (heaven forbid) we need one.

"D" is our savings bond bank. That is, it redeems papers savings bonds for customers, with no limits if you have an account. We also keep about $3,000 in checking there to be a backup in case of any technical glitches with bank "N."

We think we've found a bank that's conveniently near a supermarket we use regularly in our new location, that redeems savings bonds and provides signature guarantees, so the plans are to replace bank D with this new bank.

[White Coat Investor]

2023 was an interesting year for banking with the collapse of a few high profile banks (Silicon Valley Bank, First Republic, etc.), some notable bank mergers (Bank of the West became BMO and Union Bank became U.S. Bank), and according to the FDIC, 108 fewer commercial banks exist in Sep 2023 vs. the prior year. In addition, according to EPFR, investors moved $1.2 trillion into U.S. money market funds since the beginning of 2023 with total assets reaching $6.4 trillion.

Against the backdrop of the year behind us, I'm curious where you bank in 2024 and why?

Did you make any changes to your banking relationships such as moving to a One Stop Shop?

If you moved to money to money market funds, what's your strategy and how will you keep your personal banking finances simple in 2024?

USAA.Inertia

No

Put money in MMF rather than letting it sit in checking if I don't need it soon.

[Jack FFR1846]

My main as it has been for thirty something years is DCU, Digital Credit Union. In addition to the super customer service and ability to do everything I need, no-fee typically means zero minimum balance and no fees at all. Notary or Pope endorsed wax seal medallion signature unlimited guaranty are both available and free. Savings bond cashing with a $25 bond or a stack of $50k of bonds, I've done both of these. Online ability to see and transfer between my family members who are joint with me for no fee. While my son was out of work and needed cash daily, I sent money at least daily. So 30 a month are a "who cares?" from DCU. Checking is free, car loans are cheap with the same rate for used. They also specialize in car refinancing so you could go in with your 2006 Camry and get a couple grand loan on it for the same rate as if you were buying a new car. Credit unions exist to serve their members. Not the investors who beat down their door for dividends. Overdraft fee for a mistake sending payment from the wrong account? Waived by email, phone call, visit, I've done all 3 and told my son and he did it as well. No problem at all. Branches or ATMs? Co-op network means that there are only like 2 commercial banks that exist that have more. Far less hassle than banks. DW was going with her 91 year old father because father wanted her added to an account. Walk in and nobody's at the bank at all. Yet, they can't help DW and her father. They'd have to make an appointment for tomorrow. What clowns. (Bank of America, by the way. Or maybe they're now called Bank of Clowns).

[vshun]

Moved banking to Fidelity last year. Investment taxable is an equivalent of savings account and has rolling TBills ladder at 5.4% or so state tax free.
Paying bills from CMA account where money is at FDLXX 5% state tax free, which is liquidated when bill or ATM transaction comes.
Got 2% cashback card there as well which automatically deposits rebate every month (unlike something like Citi Double Cash).

[minesweep]

I've had a checking account at a community bank located in Allentown (Billy Joel song) since it's founding back in 2000. At the time they offered a 6% interest rate (fed funds rate was as high as 6 1/2% back then). Also, at the time I recall them billing themselves as an Internet bank (they only have one branch). Today their e-checking account pays a 1% interest rate (no minimum balance). It's been years since I set foot in the bank.

[Silverado]

USAA has been the base bank since 1993 commissioning. Several local B&M have been rotated through, mainly because after consecutive bad mortgage experiences with USAA (PHH) we will never use them again. Additionally, for our frequent corporate relocations we get some nice direct billing benefit using a credit union that is lightly associated with our company. We have had an account at that CU for about six years now. Great service, good CD rates.

I was going to say “USAA, because I don’t like earning interest…”

[srt7]

U.S. Bank. I like their mobile app. Also, have a few locations nearby on that rare scenario when needed. Unlike Chase they continue to offer safety boxes (for now at least).

[Gecko10x]

We made a bunch of changes in 2023, precipitated by a physical move, and influenced by rising rates.

Checking at local Credit Union, because they offer 2% interest up to $25k (with a few hoops), and they offer kids accounts.

HYSA with M1 because I already had investments with them and the rate is good.

[Gort]

Chase bank for checking. Well designed and easy to use online bill pay service. Free checking with no minimum balance requirements for active duty military, retired military and veterans.

[Count of Notre Dame]

I only keep about a $20k average balance in my BofA account. They pay almost no interest, but the difference in their rate vs. other bank's rates is not material enough for me to care. Excess cash gets invested for higher potential returns.

[exodusNH]

2023 was an interesting year for banking with the collapse of a few high profile banks (Silicon Valley Bank, First Republic, etc.), some notable bank mergers (Bank of the West became BMO and Union Bank became U.S. Bank), and according to the FDIC, 108 fewer commercial banks exist in Sep 2023 vs. the prior year. In addition, according to EPFR, investors moved $1.2 trillion into U.S. money market funds since the beginning of 2023 with total assets reaching $6.4 trillion.

Against the backdrop of the year behind us, I'm curious where you bank in 2024 and why?

Did you make any changes to your banking relationships such as moving to a One Stop Shop?

If you moved to money to money market funds, what's your strategy and how will you keep your personal banking finances simple in 2024?

Top 15 bank as my "hub". Gets the bulk of my payroll deposits and holds 4-6 weeks of expenses.

Online-only HSA, for the first four months of my emergency fund.

Vanguard for the remainder of my emergency fund.

Credit cards with Chase, Citi, BoA, Wells Fargo. The latter is what I use the most, for the 2% back. The others I keep around so as not to damage my credit. The BoA card is my oldest account, nearly 30 years now. It was originally my first credit card, a secured one, that graduated to a real one after a year. MBNA eventually took it over, before BoA took them over.

I don't chase bank bonuses. It's too much hassle, especially if there are debit card requirements, as I simply do not have enough transactions monthly to meet most of those requirements.

[jayars35]

Personal banking at State Employees Credit Union.

Business banking at Truist, started when it was BB&T, First Bank of North Carolina and Fidelity Bank. I plan to leave Truist soon.

[livesoft]

No change in banking. Already at a one-stop shop: Wells Fargo. Although I haven't been in one in a years, a WellsFargo is the closest commercial establishment to my house and there are about five other WellsFargo buildings within a 5 mile radius. Everything is free, Free, FREE for us at WellsFargo, but I'll put in a special plug for their free brokerage because one can transfer cash to checking practically instantly while other places seem to take a day or two.

[renegade06]

USAA but do not keep $$ there beyond checking

[slippinsurlies]

Over the holidays, I took some time to rearrange my bank situation. I was at a one-stop-shop. My checking, savings, and credit card were at PenFed credit union. Having everything in one spot was pretty nice. It made transfers and credit card payments fast. Now I'm spread around. Checking at USAA. Savings at CapitalOne. Credit cards at American Express and Wells Fargo. I get better rates and better security (for Quicken Simplifi) with my new setup.

I've always been happy with USAA's service (banking and insurance). I know that other folks have different experiences, but I'm not planning on going anywhere. Even after my experiment with PenFed (I used them for 3 years, having previously done everything at USAA), I'm happy with USAA.

[iceport]

If you moved to money to money market funds, what's your strategy and how will you keep your personal banking finances simple in 2024?

Yes, that's really all I did. I used to take care of all my banking needs at my local credit union. Everything was neat, tidy and automated. Part of my income, automatically deposited into the checking account, was automatically transferred to my savings account (part of a sinking fund for anticipated large expenses) each month, part was automatically transferred into a separate property tax/insurance account (I just like the orderliness), and the rest was left in checking. Whenever I wanted to pay a tax or insurance bill, or needed a little more cash for a big expense, I just made an instant transfer to checking and paid the bill.

However, in early 2023 I moved all my cash except maybe a month's worth of normal spending over to a Vanguard money market fund, which ended the year earning over 5.30% interest. There's just $50 left in the two special purpose credit union accounts.

The automated transfers within the credit union have been replace by an automated monthly investment, by ACH, into the Vanguard MM fund. When I need money to pay the taxes, like I do now, I just have funds from the money market fund transferred by ACH back to the credit union. I just initiated such a transfer yesterday and the funds were available in the credit union checking account today.

That's the only real complication, the day delay for transfers between institutions. But it's a small bother to pay for the monthly interest the money market fund kicks off.

[flyingcows]

What do people use banks for these days?

I've only ever used banks for checking accounts and credit cards, I use brokerage accounts for my investments and savings. I don't understand the appeal of a bank savings account or CDs compared to comparable risk products available on brokerages that will often have superior yields

How does a bank get competitive over customers with only a checking account? I just went with a big bank that was unlikely to collapse with the option to do everything I needed through the banks app/website so I would never need to visit a branch for anything

Which big bank did you go with? I like your thought process and have the same philosophy but I can’t seem to find the big bank that prevents me from going to the branch for things like updating beneficiaries or even setting up a joint account. They all seem to want me to come into the branch with my P2 so they can try to upsell us. I would rather just handle account maintenance online but have the option to go to a branch if something should go wrong, need a Medallion stamp, or the rare occasion I need to deal with physical cash, etc.

I use Bank of America for my checking and my primary credit card, if you have 100k (or ETFs to transfer) to park in a merrill edge brokerage account linked to your BoA account you will have "Platinum Honors" rewards status. BoA have 2 rewards credit cards that are boosted by this perk, one of them gives a flat 2.62% reward on all purchases, no limit, no fees. The other gives 5.25% on the selected shopping category

I think you might need to go in person for setting up a Joint Account or update beneficiaries though, although for my use cases I haven't needed to visit a branch in years

[femur]

Marcus by Goldman Sachs.

-decent rates for a savings account
-most ACH push ends up being next day with some being same day.
-no transaction limit (most banks still limit to 6 even though regulation d was nulled out years ago)
-decent iPhone app

My paycheck goes into Marcus and all my bills (that I can’t pay with a CC) auto pay from Marcus.

If I have to write a check, I same-day ACH to my small brick and mortor credit union and write the check from that account. I only keep $100 there otherwise.

[N.Y.Cab]

WellsFargo because they still redeem paper savings bonds and have safety deposit box to store them.

[gionnovi]

Had a checking account at Charles Schwab since about 2007 when I was in college. No fee for paper checks, atm withdrawals (fees reimbursed), etc. One of the first banks to offer mobile deposit. I could always easily setup push and pull achs transactions between outside accounts and do online bill pays. They even gave you postage-paid envelopes to mail a deposit. When I had little money in college, these were huge selling points. Customer service was always great too.

Moving into adulthood, it was nice having the brokerage and checking linked up and getting going with savings/investments. Low cost and then eventually free trades. Some good index mutual funds with low ers.

Only downside in 2024 is they don't pay as good of an interest rate on your cash as some other options. You can buy/sell their money market funds manually and get a good interest rate - this a minor inconvenience. It's not much different than having an online savings account where you ach back and forth - just slightly easier as it is one screen. You still get about .50% interest on checking where a lot of banks are nothing, so it is not wholly unfair. I just set my due dates on the credit card to be end of month and only keep a small amount and checking until I need to pay the bill. This forces me to look at the credit card statements together every month anyways so a good practice.

Starting fresh, I might consider Fidelity cash management account but given long history at Schwab not really a reason to switch. Everything is setup nicely and service has been great.

[Metsfan91]

BOA
Cap 1
Chase
Citi
Citizens
Credit Union

because I can

[jdubsdubs]

- Deleted -

[jdubsdubs]

- Deleted -

[cheesepep]

I bank at Home Savings. I mean Washington Mutual. Sorry, I mean Chase. It's my main account.

Sub account at Cap1 and Schwab.

Cap1 is really annoying me. I have to call them for everything now. I want to close my CD account. There is no option to do so online. Only an option to roll it over for another 11 months. If I want to close, I need to call. I could have sworn that there was an option to close my CD account without calling before. I only have them for my savings now.

Schwab's interface is getting worse and worse, though.

I might go the BoA route to get the 2.625% credit rewards.

[Elric]

Two banks:

• Long time Ally user for good interest rates. Haven't ever had a problem with them. Most money kept here.

• Wells Fargo. Not a particularly good bank, and in some ways, horrible. Keep as our local brick and mortar bank for convenience and habit. Banked with another bank that was very close to my office. They merged with another. Then they merged with Wachovia. Eventually it became Wells Fargo. Convenient to our house for our safe deposit box, and on the personal side, always smooth dealing. but if looking for new, would NOT recommend. Our HOA also uses Wells Fargo for some accounts. HORRIBLE experience year after year when the officers change. They require different, sometimes obscure, paperwork to add new authorized signees, require in person appearance, and can't seem to manage taking previous officers off the list.

• For my small, part time business, United Bank. Local, convenient, and no-fee business checking account with a very small required minimum balance.

• Also recommended on business side: Live Oak Bank. Our HOA uses them and a non-profit that I'm on the board of. Smooth interactions. High interest.

[Cruise]

All of our big money is held at Fidelity, but we have all of our SS/pension payments going to an account at our largest regional bank. We keep mid-high 5 figures floating there, with all our CC charges debited automatically.

We are giving up a lot of interest here, but establishing a relationship. We are meeting with them in the near future to discuss private banking and trust departments, with an eye towards them taking over our big money when our brain cell death rate reaches criticality.