Should I close my Bank of America accounts?

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anuaps
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Should I close my Bank of America accounts?

Post by anuaps »

I recently switched to Fidelity as a one-stop shop and also got their 2% cash-back credit card. Before this, I used Bank of America (BOA) as my main bank and Ally Bank for savings and CDs. I've now moved all my money to Fidelity.

Since obtaining the Fidelity credit card, I've stopped using my BOA credit card, as I already have a Chase Amazon card and a Bilt card.

I've noticed that my BOA account has a $12/month maintenance fee unless I maintain a $1,500 balance or have a direct deposit. There's a similar fee for the savings account.

Given that I already have Ally Bank as a backup for my Fidelity account, would it make sense to close the BOA account and credit card? I'd prefer to get a better rewards card rather than keep the BOA credit card, which I don't plan to use anyway, or perhaps not get a replacement card at all.

I don't want to keep $1,500 in BOA just to avoid fees, especially when I could be earning interest at Fidelity.
lemonPepper
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Re: Should I close my Bank of America accounts?

Post by lemonPepper »

I went to a similar exercise myself and I decided to keep the Bank of America account open because we do need cash for babysitter, gardener, cleaners. We have a BoA branch that's convenient. So decided to stick with them


In your case fidelity can serve your banking needs as you can purchase some MMF that auto liquidate.

I plan to use the Fidelity brokerage as my checking account from which I pay all the bills.

I also open the vanguard Cash Plus account where I will deposit my paycheck and I plan to shield that account from external ACH debit requests. I will have those go through fidelity exclusively.


Vanguard also has a better selection of money market front than Fidelity so I chose to keep my emergency funds at vanguard.
Topic Author
anuaps
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Re: Should I close my Bank of America accounts?

Post by anuaps »

lemonPepper wrote: Mon May 13, 2024 12:22 am I went to a similar exercise myself and I decided to keep the Bank of America account open because we do need cash for babysitter, gardener, cleaners. We have a BoA branch that's convenient. So decided to stick with them


In your case fidelity can serve your banking needs as you can purchase some MMF that auto liquidate.

I plan to use the Fidelity brokerage as my checking account from which I pay all the bills.

I also open the vanguard Cash Plus account where I will deposit my paycheck and I plan to shield that account from external ACH debit requests. I will have those go through fidelity exclusively.


Vanguard also has a better selection of money market front than Fidelity so I chose to keep my emergency funds at vanguard.
You can also use the fidelity debit card to get cash right? I increased the limit to 1500$
rogue_economist
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Re: Should I close my Bank of America accounts?

Post by rogue_economist »

Personally, I would keep the B of A account. Yes you have to keep 1500 in it, but that isn't that much for still having an account at a bank with thousands of physical branches. There are times and situations where that can be advantageous, and for that reason alone I'd say its worth keeping.
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lemonPepper
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Re: Should I close my Bank of America accounts?

Post by lemonPepper »

anuaps wrote: Mon May 13, 2024 12:25 am
You can also use the fidelity debit card to get cash right? I increased the limit to 1500$
you are right about that. I can use Fidelity for cash withdrawals. I rarely need to withdraw $1500 so the limit won't be an issue.

I forgot to mention the main reason I kept BoA: Zelle. My tenants pay me on Zelle. I should get them to send me an ACH but many banks charge for ACH so I haven't bothered. It seems like many banks ahve a lot of restrictions on ACH and whether ACH is allowed to accounts they don't own. But I don't have definitive knowledge so I accept rent on Zelle.
Florida Orange
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Re: Should I close my Bank of America accounts?

Post by Florida Orange »

Closing the BoA card, especially if it's your oldest card, will shorten the length of your credit history and will negatively affect your credit score, although probably not a lot. You may or may not care about that.
Topic Author
anuaps
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Re: Should I close my Bank of America accounts?

Post by anuaps »

rogue_economist wrote: Mon May 13, 2024 12:29 am Personally, I would keep the B of A account. Yes you have to keep 1500 in it, but that isn't that much for still having an account at a bank with thousands of physical branches. There are times and situations where that can be advantageous, and for that reason alone I'd say its worth keeping.
Any reasons I would need a physical locations. In the last 12 years went there only once to get medellian signature. Which I believe I can get at fidelity.
cupcakeswsprinkles
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Re: Should I close my Bank of America accounts?

Post by cupcakeswsprinkles »

anuaps wrote: Mon May 13, 2024 11:39 am
rogue_economist wrote: Mon May 13, 2024 12:29 am Personally, I would keep the B of A account. Yes you have to keep 1500 in it, but that isn't that much for still having an account at a bank with thousands of physical branches. There are times and situations where that can be advantageous, and for that reason alone I'd say its worth keeping.
Any reasons I would need a physical locations. In the last 12 years went there only once to get medellian signature. Which I believe I can get at fidelity.
Not the person you responded to.

You really should call to confirm that branch does. I am surprised to find out Fidelity has physical retail branches. I thought it was online only.

I personally would not keep the b of a account (with the exception of losing my longest credit card) but I do live within distance of a Navy Federal. Ally Bank does atm fee reimbursement so using the atm should not be an issue.
inverter
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Re: Should I close my Bank of America accounts?

Post by inverter »

I would close it. Simplicity is open overlooked here :)
Topic Author
anuaps
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Re: Should I close my Bank of America accounts?

Post by anuaps »

cupcakeswsprinkles wrote: Mon May 13, 2024 12:04 pm
anuaps wrote: Mon May 13, 2024 11:39 am
rogue_economist wrote: Mon May 13, 2024 12:29 am Personally, I would keep the B of A account. Yes you have to keep 1500 in it, but that isn't that much for still having an account at a bank with thousands of physical branches. There are times and situations where that can be advantageous, and for that reason alone I'd say its worth keeping.
Any reasons I would need a physical locations. In the last 12 years went there only once to get medellian signature. Which I believe I can get at fidelity.
Not the person you responded to.

You really should call to confirm that branch does. I am surprised to find out Fidelity has physical retail branches. I thought it was online only.

I personally would not keep the b of a account (with the exception of losing my longest credit card) but I do live within distance of a Navy Federal. Ally Bank does atm fee reimbursement so using the atm should not be an issue.
I don't care about losing some credit points. I have 800+ points. Should I still not close my credit card? I feel annoyed to monitor an card which I don't plan to use forever.
increment
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Re: Should I close my Bank of America accounts?

Post by increment »

anuaps wrote: Mon May 13, 2024 11:39 am In the last 12 years went there only once to get medallion signature. Which I believe I can get at fidelity.
Fidelity may offer them, but they can choose whether or not to actually do that for you. For example, they might do it only for transactions that involve your own Fidelity account.
drk
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Re: Should I close my Bank of America accounts?

Post by drk »

Definitely close the checking account. There's no reason to keep it when you can open a free checking account at a local CU if necessary.

Assuming the credit card has no annual fee, I would call to reduce the credit limit, then lock the card. Make sure you also ask them to reduce the Cash Credit Line to the lowest possible because BofA sets this stupidly high by default and does not allow $0 limits.
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aristotelian
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Re: Should I close my Bank of America accounts?

Post by aristotelian »

For sure, close it if you're not using it. I've kept my relationship with BofA/Merrill in order to get the platinum tier cash back from their excellent credit cards. I use my BofA checking purely as a pass through for getting funds to my Merrill Edge account. If you get preferred rewards they waive the bank account fee.
bombcar
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Re: Should I close my Bank of America accounts?

Post by bombcar »

I would close it if it doesn't provide value for you.

Leaving $1500 in it for a year to see if you use it might be worthwhile.

Also consider a local credit union instead as a "counterpoint" to massive Fidelity, as local things can have advantages, too.

The credit hit from closing the card should be low or non-existent, I'd close it.

In general, the fewer accounts, the fewer attack vectors for scammers, too.
retireIn2020
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Re: Should I close my Bank of America accounts?

Post by retireIn2020 »

To avoid the fee, just have one direct deposit set up (monthly). It's super easy to transfer money back and forth between BOA and Fidelity. When I was working, I had the option to split my payroll direct deposit between two separate accounts.
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fullham
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Re: Should I close my Bank of America accounts?

Post by fullham »

If you do not plan on using it then close it. If you ever need it again you can get a new account. Or like others suggested at a CU that doesn't charge fees.
d230
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Re: Should I close my Bank of America accounts?

Post by d230 »

Close it.
You can always open it again. It's possible you'll even get a bonus for opening an account with them. :mrgreen:
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9Iron
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Re: Should I close my Bank of America accounts?

Post by 9Iron »

i’ve struggled with this question for awhile and concluded that I like having a separate Bank Account that is not tied to my Investment accounts.

I use my Bank account to receive and disburse funds. I prefer to not store my brokerage account information on employers systems for direct deposit, or to provide it for electronic bill pay ( reoccurring or onetime pulls ). I also use it for Zelle.

It’s also handy to have a nearby branch, although I don’t use it often.

That being said, you mentioned that you have a Chase / Amazon account. You could always use Chase instead of BoA, if you wanted to maintain a banking relationship, and reduce the number of financial institutions that you are using.
Topic Author
anuaps
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Re: Should I close my Bank of America accounts?

Post by anuaps »

9Iron wrote: Mon May 13, 2024 7:22 pm i’ve struggled with this question for awhile and concluded that I like having a separate Bank Account that is not tied to my Investment accounts.

I use my Bank account to receive and disburse funds. I prefer to not store my brokerage account information on employers systems for direct deposit, or to provide it for electronic bill pay ( reoccurring or onetime pulls ). I also use it for Zelle.

It’s also handy to have a nearby branch, although I don’t use it often.

That being said, you mentioned that you have a Chase / Amazon account. You could always use Chase instead of BoA, if you wanted to maintain a banking relationship, and reduce the number of financial institutions that you are using.
I don't mix investment account and my cash account in Fidelity . I have 3 cash/mmf account (1 checking, 1 saving and for ATM /Debit card) and 1 investment account.
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Smartbutnotenough
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Re: Should I close my Bank of America accounts?

Post by Smartbutnotenough »

I would check on the $1500 limit. I had BoA switch me to Adv Plus Checking and Regular savings which requires me to transfer $25 from checking to savings monthly and maintain a balance of $300 to avoid fees. I kept BoA as they were my first account and have had them for over 20 yrs now.
muffins14
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Re: Should I close my Bank of America accounts?

Post by muffins14 »

lemonPepper wrote: Mon May 13, 2024 12:22 am I went to a similar exercise myself and I decided to keep the Bank of America account open because we do need cash for babysitter, gardener, cleaners. We have a BoA branch that's convenient. So decided to stick with them


In your case fidelity can serve your banking needs as you can purchase some MMF that auto liquidate.

I plan to use the Fidelity brokerage as my checking account from which I pay all the bills.

I also open the vanguard Cash Plus account where I will deposit my paycheck and I plan to shield that account from external ACH debit requests. I will have those go through fidelity exclusively.


Vanguard also has a better selection of money market front than Fidelity so I chose to keep my emergency funds at vanguard.
You can just use your Fidelity debit card at that conveniently-located BofA and withdraw cash.
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whodidntante
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Re: Should I close my Bank of America accounts?

Post by whodidntante »

Bank of America is a great choice if you can fully utilize the advantages of their Preferred Rewards program. It's a terrible choice if you are paying them fees.
NYCaviator
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Re: Should I close my Bank of America accounts?

Post by NYCaviator »

I would close it if you're OK not having a local bank. There's no sense in having money sitting in an empty account you aren't going to use, and even less sense in paying fees for it.

I, personally, wouldn't go 100% in at Fidelity. I got locked out of my Fidelity account once, and it was a real hassle to get back in (which is good from a security standpoint), but for that reason, I'd always want at least one non-Fidelity checking account and credit card. So keep your Ally account as long as you don't need a local bank.

I prefer to separate transactional banking from investing. There's just too much opportunity for fraud on a checking account. I agree with whodidntante that BOA is fantastic with Preferred Rewards. I opened Chase and BoA accounts to see who we wanted to move to and I chose BoA. The customer service has been excellent as we get everything set up, and they don't transfer you to overseas call centers like Chase. Time will tell, but so far I am very impressed with BoA. I was initially worried based on all of the negative posts about them on here.
3000
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Re: Should I close my Bank of America accounts?

Post by 3000 »

Keep the BOA credit card until after you get a new rewards card. Credit cards I no longer use I lock on the issuer's website and just keep them in a drawer. If they get closed they get closed.

The checking account I would close to avoid a fee. If you find you need an account at a physical bank see what credit unions are in your arena that offer free checking accounts.
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