Find a Better Bank

[tongodeon]

I've been banking with Wells Fargo since the mid 90s when I moved to California. I've been getting tired of Wells Fargo specifically and big commercial banks generally for a variety of reasons:

- Their penalty and fee schedules are predatory. Minimum balances, overdraft penalties, ATM fees, and other issues can get very expensive

Comments

[matrushkaka]

Negative for Ally: it took 17 business days for me to get my new debit card and then another 5 business days for the PIN to come.

[tongodeon]

That wasn't my experience for setting up my savings account, my checking account, or my half of our shared account, and when I called the bank on your behalf they sent your ATM card quickly. There might have been a communication issue.

There *is* a bit of a delay between the card arriving and PIN arriving. I think they want to make absolutely sure that the envelope with your card and the envelope with the PIN don't end up in the same mailbox where someone can grab them both.

[cactusthesaint]

You listed FDIC insured as a positive on Ally but don't mention whether USAA or Schwab are also FDIC insured.

I've been happy with USAA despite their lower interest rates. I also have numerous insurance policies with them. I wouldn't close my account with them, but I'd consider setting up a higher-interest savings account with another online bank.

[tongodeon]

Not sure if you're USAA Savings Bank or Federal Savings Bank but they're both insured. Ditto for Schwab.

And to be clear, there was nothing wrong with USAA or Schwab. They both seemed like very good choices. (I just went with Ally because they seemed like an even better choice.)

Actually, the one thing that bugs me about USAA is that they spammed me with messages against bank reform. I got a "USAA CEO requests your help today" email asking me to write my congressman protesting the reform bill. Didn't get one from Wells Fargo, Schwab, or Ally. I'm OK with them promulgating their views to others of course, I just happen to disagree with those views.

[soldiergrrrl]

I have no idea why USAA is holding your deposits, but it's not standard practice, at least in my experience. I have never, in over 15 years of banking with them, had a deposit held. And I routinely use Deposit@Home and the mobile app.

Also, they're absolutely awesome to deal with if you're not in the US, or are remote.

[flwyd]

Only members of the American armed forces and their immediate family can be USAA members. I became a member while my father was a doctor at Walter Reed, but you might not be able to.

"... and the immediate family of USAA members." Although my grandfather had a career in the army, my dad was a conscientious objector in Vietnam and I've never touched a gun. When I got divorced, my wife got her own USAA insurance account with no hassle. So while membership is limited, it's reasonably easy to be grandfathered in, so to speak.

Another good option, especially for folks who want a brick-and-mortar option, are credit unions. There are typically very low minimum balances ($25 in savings, none in checking), few fees, helpful staff, and good deals on loans. ATM withdrawals are free from other credit unions' machines. This is all predicated on the principle that their job is to serve their customers rather than to make a profit, which is refreshing. Negative: Interest rates on deposits are significantly lower than what you list above.

[talldean]

USAA was for military and family members of officers. My father was infantry, and I don't qualify, unless their policies have changed.

[tongodeon]

My dad had USAA. He added me as a driver to the family policy in high school. When I moved out and got my own car I was able to continue coverage with them. If you're no longer a dependent you might not be able to join.

Actually, in the early '00s I owned a fast motorcycle and got enough speeding tickets that USAA dropped my coverage and I had to go with Geico or something. I thought I was screwed, but after a year or so I called USAA and they saw I had a clean record since then and I was able to come back. So the rules are lax in some cases.