Online Banking...Pros/Cons/Cautionary Tales

[JWags85]

I was just having a conversation with a friend about banks and their online offerings.  He's been using Schwab Checking for everything for awhile but wanted a traditional brick and mortar for certain situations, but also was concerned about online presence cause thats how he (and most people) does most all his banking these days.

I bank primarily with Chase and they are sort of my gold standard.  Really never had a complaint and their app/website is pretty fantastic.  Sort of my gold standard that I compare against.

US Bank was my first bank when I went to college years ago.  I kept a checking account with them as I had my oldest CC with them, even after I moved to Chase.  Their website STIIINKS, IMO.  When I stopped banking with them a few years ago, the sample verification deposits some payment services would place in your account often wouldn't post until the next day, which was crazy to me.  But their app was pretty good.

Ive heard decent stuff about Wells Fargo.  I have a checking account with Fidelity tied to my investments that I also use for international ATMs as there are no fees, which is nice.

But the worst, the torchbearer for GARBAGE in this sector......Ally Bank.  I could write a novella on how crap the bank is.  They were, for awhile, my primary savings account as the rate was quite good.  So I kept it as a backup source of funds.  However, every interaction or question was met with dopey customer service reading off a script who literally were so unhelpful it was like talking to AI.  I had a few friends who used them for checking who said that payments or ACH withdraws would be rejected sometimes, with no message about a potential overdraft or that a payment was even attempted.

My favorite though, was a handful of times I had to submit wires from that savings account for a variety of reasons.  The wire cutoff time was 3PM EST.  I once submitted at 2:15EST and it wasn't processed that day, ok fair enough.  Well 2 other times I submitted at 9AM and 9:40AM EST...and neither processed the same day.  See that 3PM cutoff...is for their REVIEW not just submission.  So if they just don't get to your wire by that time, welp, sorry, we'll send it tomorrow, thanks for the fee tho!  I once spoke to a manager, which took me 3 different requests, and he assured me their process was RIGOROUS and as fast as any in the industry, see there are FDIC clearances and paperwork, and BLAH BLAH boilerplate.  Meanwhile the request takes about 30min at any old traditional brick and mortar which they claim to be better than. 

TLDR...Chase is great, Fidelity and Schwab are great non traditional options...Ally can burn in hell

[BM1090]

I was just having a conversation with a friend about banks and their online offerings.  He's been using Schwab Checking for everything for awhile but wanted a traditional brick and mortar for certain situations, but also was concerned about online presence cause thats how he (and most people) does most all his banking these days.

I bank primarily with Chase and they are sort of my gold standard.  Really never had a complaint and their app/website is pretty fantastic.  Sort of my gold standard that I compare against.

US Bank was my first bank when I went to college years ago.  I kept a checking account with them as I had my oldest CC with them, even after I moved to Chase.  Their website STIIINKS, IMO.  When I stopped banking with them a few years ago, the sample verification deposits some payment services would place in your account often wouldn't post until the next day, which was crazy to me.  But their app was pretty good.

Ive heard decent stuff about Wells Fargo.  I have a checking account with Fidelity tied to my investments that I also use for international ATMs as there are no fees, which is nice.

But the worst, the torchbearer for GARBAGE in this sector......Ally Bank.  I could write a novella on how crap the bank is.  They were, for awhile, my primary savings account as the rate was quite good.  So I kept it as a backup source of funds.  However, every interaction or question was met with dopey customer service reading off a script who literally were so unhelpful it was like talking to AI.  I had a few friends who used them for checking who said that payments or ACH withdraws would be rejected sometimes, with no message about a potential overdraft or that a payment was even attempted.

My favorite though, was a handful of times I had to submit wires from that savings account for a variety of reasons.  The wire cutoff time was 3PM EST.  I once submitted at 2:15EST and it wasn't processed that day, ok fair enough.  Well 2 other times I submitted at 9AM and 9:40AM EST...and neither processed the same day.  See that 3PM cutoff...is for their REVIEW not just submission.  So if they just don't get to your wire by that time, welp, sorry, we'll send it tomorrow, thanks for the fee tho!  I once spoke to a manager, which took me 3 different requests, and he assured me their process was RIGOROUS and as fast as any in the industry, see there are FDIC clearances and paperwork, and BLAH BLAH boilerplate.  Meanwhile the request takes about 30min at any old traditional brick and mortar which they claim to be better than. 

TLDR...Chase is great, Fidelity and Schwab are great non traditional options...Ally can burn in hell

I've used Chase for years and never had an issue. Fidelity is good. Have had some issues with their customer service reps. Incredibly friendly, but lack of knowledge has made some 401K rollovers difficult.

[Skatastrophy]

Devil's Advocate: Ally is fine. I switched to Ally from ING Direct in ~2015. Their app experience is above average for banks, though their web experience is below average. They're definitely an app-first player.

That's how wires work at banks. Wires are costly and manual. My experience with wiring funds ~20x per week with The Private Bank (CIBC) has been significantly worse of an experience than Ally. The number of times they called me to validate info was brutal. Ally has been straightforward the ~5 times I've had to wire funds out of my personal account, but I'm pretty good at wiring 2-3 days in advance because banks are incompetent.

The only time I've had ACH problems with Ally is ACHing funds from a personal to a business checking account, which they apparently aren't licensed to do. That's the biggest problem I have with them.

I threw some money at SOFI stock because I feel like Ally is disruptable in the neo-bank space. But I still haven't stopped using Ally because of it. No way I'm giving any money to JP, Citi, or Wells.

[Uncle Rico]

As someone who had his identity stolen the weekend covid hit in 2020, I can say that dealing with Wells Fargo, BMOHarris and Chase that following week when they had limited staffs went as smoothly as I could have hoped.

I had an issue with Wells Fargo this past holiday season where I made a mistake with some tax papers and they helped me solve it immediately, even after they said it would take a few weeks.  Their website is the weakest of the three I mentioned but it’s still user-friendly enough that I’d recommend it.

[rocky_warrior]

I made a mistake with some tax papers

On topic, dumped Chase years ago, and do everything (including business accounts) with a local credit union.  They're fantastic, can use any credit union ATM around the country, and they refund a few big bank ATM fees each month.  But really, who needs an ATM when nobody uses cash now.  Can walk into any credit union around the country and work with them too.  Also mortgages though them are easy - I just call the loan officer I've worked with for years, and she hooks me up.

[Uncle Rico]

I’ve done a lot of dumb and careless things in my life and this one was up there but nothing illegal

[JWags85]

Devil's Advocate: Ally is fine. I switched to Ally from ING Direct in ~2015. Their app experience is above average for banks, though their web experience is below average. They're definitely an app-first player.

That's how wires work at banks. Wires are costly and manual. My experience with wiring funds ~20x per week with The Private Bank (CIBC) has been significantly worse of an experience than Ally. The number of times they called me to validate info was brutal. Ally has been straightforward the ~5 times I've had to wire funds out of my personal account, but I'm pretty good at wiring 2-3 days in advance because banks are incompetent.
[/quote

Maybe CIBC is just as bad instead of Ally being "fine".  Ive sent wires from Chase, US Bank, Wells Fargo, Fidelity, and BMO Harris over the years, not to mention a regional bank I use with business.  All were completed within an hour.  BMO and the regional were just a bit annoying as I had to go into the branch, but I did both around the beginning of my day between 9-10 and were done around lunch.  Fidelity doesn't charge a fee, which was nice. 

If Ally wants to be "disruptive" they need speed of transaction that matches other banks.  I can wire from Chase to a brokerage account and be trading the funds within 2 hours.  Ally can't guarantee they will process the wire within SIX HOURS.  Not to mention they often don't process ACH quickly either.  I had multiple times where an ACH was sent and they didn't have it until 2 days after.  Which is never the case anywhere else, except maybe CIBC.

[mu_hilltopper]

I've had US Bank since my MU days 30+ years ago, so that's my main account .. Not sure they still charge you for an online check deposit which irked me greatly.

A co-worker opened an additional account at Ally, as they'd refund ATM fees .. so I gave that a try as well.  I've never had a problem with Ally, love the ATM refunds, and the free online check deposits. 

I opened two more Ally accounts for my kids for them to stash birthday money .. it's nice to be able to xfer money between us all when they "pay" for something.  And they get a debit card.

.. That being said, years ago I'd take out $500 a month in cash from an ATM .. now it's down to about $500 a year, (as I pay for my Arby's with credit now.)

[Hards Alumni]

I have never had a single problem with my local credit unions.  I still have no idea why anyone uses a national bank. 

[Sir Lawrence]

I have never had a single problem with my local credit unions.  I still have no idea why anyone uses a national bank.

Venmo?  Which I don't use, but doesn't Venmo need to be linked to one of the big boys?

[#UnleashSean]

Chase hosed me 10 years ago. Been with Ally ever since.

[ZiggysFryBoy]

I have never had a single problem with my local credit unions.  I still have no idea why anyone uses a national bank.

Agreed with this.

[JWags85]

Venmo?  Which I don't use, but doesn't Venmo need to be linked to one of the big boys?

Venmo/Zelle/Credit Card perks etc...

I think there is a lot of value to having a credit union, especially when it comes to loans, CDs, or other products.

I think the landscape has fundamentally changed in the sense that it makes sense to have more than one bank.  Which people used to think was suspicious or some still think is "too complicated", which is an idea that seems silly to me.

[TAMU, Knower of Ball]

Morgan Stanley and Schwab for all my financial needs. Been really happy with both.

[MU82]

Have had no problems with either Ally or Synchrony, both of which we've used for banking/CDs for years.

[dgies9156]

Much depends on what you want from your bank.

If the goal is to have a transaction account and maybe a place to park money, just about anybody will do. The money center banks tend to have cutting technology and better bill pay, but that's about it. Credit unions can offer a lot of things to you because they are income tax-exempt and have a 25 percent to 30 percent cost advantage over commercial banks. A lot of those things you love about credit unions are possible because they don't pay taxes.

Where having a banker comes in handy is when you need something other than commodity credit and deposit services. If you need financial advice or your services bundled, or something straightened out, it helps to have a personal banker. If you are a small business or a sole proprietorship and try to do everything online, well, good luck.

Like some previous commentators, I was with US Banks for years. Or, more correctly, with First Wisconsin and then Firstar. I used them at Marquette and when I lived in markets where they had a presence, I sought them out because they were good. But after the Firstar/US Banks merger, we had a cluster with them and ran like hell. We went to a Chicago-area community bank, which had a very mediocre online system and an inability to link investment and commercial banking services into one statement. That sucked then and still does now. I swear their technology runs on an Intel 80286 chip!

What blew my mind about the Chicago-area bank is the lack of any cross-sell. Shortly after we moved our accounts, we filled out a mortgage application in expectation of a refinance that never happened. They had data on every one of our financial relationships -- and then some -- and knew how much money went through our checking account every month. There were relationships to be had, to put it mildly, but they never asked. When an extremely large Milwaukee-based insurance and money management firm asked for our business, we heard them out and gave it to them. It's business the bank might have had, if they cared about the customer relationship.

We still have the Chicago account, because we still have a house there and our line of credit is through them. But most of our banking is with Chase in Florida and I have to admit, they're good. I have a personal banker here and she's worked with us on a host of banking issues, untangled credit card problems and generally made our lives easier. We've got a possible situation working where we would need some short-term, non-commodity borrowing and the fact they know me goes a long way toward feeling comfortable we'll get what we need.

I'd sum up this way: As our financial needs become more complex, having a traditional banker is critical. But the banker has to be more than an order taker. He or she has to know you and know what their financial institution can do effectively, for you.

[The Hippie Satan of Hyperbole]

Opened my first savings account with First Federal Savings and Loan in Madison in the 1970s.  They were purchased by Associated Bank about 20 years ago.  I use them for pretty much everything banking related.  Never had a problem and never had a motivation to switch.  (Same reason I have been with State Farm for all my property insurance since I bought my first car.)

But to be fair, my banking needs are pretty simple.

[Jay Bee]

I use a million different banks. They’re all fine, I guess. But I worry CIT Bank will just disappear one night.

If you’re just getting started, talk to ZFB. He just opened his first ever checking account last month. Due to his situation, they waived the fee for the under-$100 avg monthly balance.

[rocky_warrior]

Venmo/Zelle/Credit Card perks etc...

I think there is a lot of value to having a credit union, especially when it comes to loans, CDs, or other products.

At least with venmo any bank account is fine.  If you have a routing number & account number, it's all compatible (so yes, credit unions too).

And despite me dumping chase for storing my actual money, I certainly have, and have had plenty of credit cards issued by them and have earned tons of points/rewards over the years (pay off every month).  But that's fake money, so I don't count it

[ZiggysFryBoy]

I use a million different banks. They’re all fine, I guess. But I worry CIT Bank will just disappear one night.

If you’re just getting started, talk to ZFB. He just opened his first ever checking account last month. Due to his situation, they waived the fee for the under-$100 avg monthly balance.

I got good advice from the girls.

Seriously though, through my credit union, I get online bill pay, Zelle (dont use, the wife uses venmo and paypal, i dont trust them), we have a mortgage and a car loan through them.

Wouldn't use any bank for investments, that's what our fee based financial planner is for.

[tower912]

Credit union.   Financial planner.

[JWags85]

And despite me dumping chase for storing my actual money, I certainly have, and have had plenty of credit cards issued by them and have earned tons of points/rewards over the years (pay off every month).  But that's fake money, so I don't count it

Yea  I can't speak highly enough about Chase and their CC offerings/service.  I had various foibles with lost CCs in my early/mid 20s in Chicago and they made everything about it easy and stress free, so much that one time my wallet was stolen and I was annoyed about getting a new DL but couldn't have cared less about worries about my CC.  I had a card stolen at a bar one time, bunch of fradulent charges racked up at Walmart, gas stations, etc... the card was cancelled, charges reversed, and a new one on the way in the morning before I even realized it had been stolen.

Meanwhile, US Bank cancelled a card I'd had with them for 15 years cause an automatic payment was reversed due to a bank hold and they didn't even give me a courtesy call, all of a sudden my credit limit was zero and the card was closed cause their fraud department flagged me.  That was SUPER.

[MU82]

Who needs a bank? All mine's in crypto and NFTs, baby!

[Hards Alumni]

Venmo?  Which I don't use, but doesn't Venmo need to be linked to one of the big boys?

Nope.

[Hards Alumni]

Who needs a bank? All mine's in crypto and NFTs, baby!

One of my biggest pet peeves about the left is that they criticize the crypto space without actually understanding it.  Are people who drone on constantly about crypto or make it a large part of their personality cringe and annoying?  Yup.