How much would you pay to bank locally?

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jco
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How much would you pay to bank locally?

Post by jco »

How much would you pay to bank locally? Or from another perspective, how much would you have to gain in terms of interest rate, bonuses, etc. to switch to an online bank? If I bank locally at bank X with low interest rates but could bank at bank Y with much higher interest rates, I'm probably costing myself $50-$100 worth of potential interest for the benefit of banking locally.

I'm starting to become dissatisfied with my local bank because they keep dropping the interest rate on their rewards checking (while other banks are raising them), the branches aren't particularly convenient anymore (we moved, they closed some branches), their mobile app is pretty weak (the mobile deposit is very hit or miss), you still can't setup ACH transfer at all, etc. Overall, it's been a fine bank. But with interest rates not being very competitive and some its limitations, I'm wondering whether it's time to move on. But switching all those autopays will also be a big hassle.
Jags4186
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Re: How much would you pay to bank locally?

Post by Jags4186 »

I would pay $0 to bank locally.
mptfan
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Re: How much would you pay to bank locally?

Post by mptfan »

Jags4186 wrote: Fri Jun 24, 2022 1:47 pm I would pay $0 to bank locally.
Me too.
rich126
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Re: How much would you pay to bank locally?

Post by rich126 »

I don't see any point to bank locally unless you have some special needs (maybe a cash business). I personally have too many bank accounts. I have a small amount in a credit union because it is located at work and I can easily access cash, deposit checks, and they provide notary and medallion services.

To be honest depositing checks via a smart phone app is what I do most now.

I also have online bank accounts like at Markus although that is for savings only and I've been moving money out. I dread writing checks and do most of my payments with credit cards or online billing.I have a long time account with Wells Fargo but I pay no fees for that, of course get almost no interest but only keep enough to pay bills.

Since you can easily link accounts, I don't see why you don't keep most of your desired cash in the highest paying bank, and then just transfer money when you need it.
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anon_investor
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Re: How much would you pay to bank locally?

Post by anon_investor »

I pay $0 for my bank account that has a local brick and mortar branch.
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CAsage
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Re: How much would you pay to bank locally?

Post by CAsage »

Not one thin dime. With the rare exception (which I have never personally experienced, which is Medallion signature or depositing massive amounts of cash), I have never seen an advantage to a physical branch. With Auto-deposit of my former paycheck (and now retirement income), ATM, paying bills online.... Banking has changed over the last 40 years. It's a commodity. Yes, changing automatic payments is a PIA, but I get to do that when my credit card gets compromised periodically... I shop for CD rates at any CU nationwide, and keep my "banking" at Alliant (decent rates, decent service).
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8foot7
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Re: How much would you pay to bank locally?

Post by 8foot7 »

Absolutely nothing. I keep a small checking account balance at a local credit union that charges me $1 every month, but directs it to their charitable foundation that advances several projects across the state. I am happy with that trade-off. I have the rest of our funds with Schwab and Amex.
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Re: How much would you pay to bank locally?

Post by livesoft »

mptfan wrote: Fri Jun 24, 2022 1:52 pm
Jags4186 wrote: Fri Jun 24, 2022 1:47 pm I would pay $0 to bank locally.
Me too.
Me three. I would not pay any bank any money. The other clients of the bank have to give them money. Not me.

I bank locally and no longer have an online-only bank. My local bank has a significant online presence anyways and many brick-and-mortar locations within 5 miles of my home.
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Californiastate
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Re: How much would you pay to bank locally?

Post by Californiastate »

I rarely go to the bank. Bull and bear markets pass between visits.
anoop
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Re: How much would you pay to bank locally?

Post by anoop »

At today's interest rates, probably $500-$1000 (after accounting for taxes). It's the cost of simplicity. If I was trying to optimize for every last dollar, I would have to keep opening and closing accounts (chasing interest rates), maintaining a treasury direct account for I-Bonds, etc.
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Re: How much would you pay to bank locally?

Post by pasadena »

mptfan wrote: Fri Jun 24, 2022 1:52 pm
Jags4186 wrote: Fri Jun 24, 2022 1:47 pm I would pay $0 to bank locally.
Me too.
Same.

Banking locally brings me nothing. In 10 years, the only time I've needed to talk to someone face to face was when I needed a car loan. And I did so with a local CU that charges me exactly $0 to have a checking account with them.

Traditional banks charge you for markedly worse and outdated service than you can find online for free. The only thing you'd miss is the ability to deposit cash, and rent a safe. This isn't worth paying every month for years just in case you need it one day.
Last edited by pasadena on Fri Jun 24, 2022 2:24 pm, edited 1 time in total.
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vectorizer
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Re: How much would you pay to bank locally?

Post by vectorizer »

Doesn't have to be either/or. I keep a checking account at my long-term local credit union by "paying" a minimum $500 balance. Why? More convenient ATM network, ability to deposit or withdraw large amounts of cash, and access to free signature guarantees and notary services. Except for the ATM network, I don't use those features very often, but when I need it I really need it. FWIW, my main bank is Ally where I have checking, bill pay, savings, and short-term IRAs; overall about 100 times more at Ally than at the CU. Both banks are connected to each other and to Vanguard, FWIW.
Last edited by vectorizer on Tue Jun 28, 2022 5:16 pm, edited 1 time in total.
MathWizard
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Re: How much would you pay to bank locally?

Post by MathWizard »

I don't pay anything.

You are describing an opportunity cost. Missed interest.
However, the funds I am keeping in the bank are for convenience and
in case of online issues.

I also keep some cash at home, which of course gets me 0% interest,
but in an emergency, I have cash either in my wallet, or at my home.

I did put $20K into Ibonds, which I have to hold at least a year, so
the Ibond rate would be enough to get me to move some funds
non-locally, but I am filling up all available tax advantaged, plus
Ibonds space, so keeping my first tier Efund locally is not an
overdue burden.
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Candor
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Re: How much would you pay to bank locally?

Post by Candor »

I would switch all those 'autopays' to a rewards cc and move on.
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MDfan
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Re: How much would you pay to bank locally?

Post by MDfan »

I haven’t been inside a bank in 10 years. I don’t see the point of a local bank for the average person who just does direct deposit and occasionally uses an ATM.
LittleMaggieMae
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Re: How much would you pay to bank locally?

Post by LittleMaggieMae »

I don't pay anything to bank locally - and I have banking relationships with 2 banks and a local S&L. Unless you count the "minimum balance" amount I am required to not go below a checking account as a cost... and only one of the checking accounts has a minimum balance requirement.

I haven't been into 2 of the banks in years - I do everything online (or use an ATM).

I guess there's the opportunity cost of having about 10K spread across the 3 banks I bank with (I have a complicated banking life). the 10K is part: the minimum balance required, some EF money, and then the money that flows into sits for a few days and then flows out of the accounts... I don't really sweat the small stuff. I feel I get plenty of value from the approximately 10K I have 'tied up' across all these accounts.
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celia
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Re: How much would you pay to bank locally?

Post by celia »

We don’t pay anything to bank locally. In fact, they save us money by waiving safe deposit box fees, free cashiers checks, and free cookies and punch at Christmas (while hosting a drop box for toys for local kids). You can’t get any of this stuff online and it helps our community.

My brother lives a few miles away and he patronises the corner gas station, well aware that he is paying more. He wants to supports s local business and have compressed air for tires and s mechanic near by. (He also can’t figure out how to buy gasoline online. :D )
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Re: How much would you pay to bank locally?

Post by LittleMaggieMae »

Candor wrote: Fri Jun 24, 2022 2:23 pm I would switch all those 'autopays' to a rewards cc and move on.
FYI: I'd verify if there were any fees/charges incurred by using a CC to pay the "autopays". My local utilities charge a fee if payment is made with a Credit Card - it's more than than the 1% (or even 2%) cash back reward. And Utilities are usually a monthly bill...
mptfan
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Re: How much would you pay to bank locally?

Post by mptfan »

pasadena wrote: Fri Jun 24, 2022 2:04 pmThe only thing you'd miss is the ability to deposit cash...
This is normally true, but Cap One offers a creative way to deposit cash into their online 360 checking account by partnering with CVS, you can deposit cash at any CVS store.
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Re: How much would you pay to bank locally?

Post by pasadena »

mptfan wrote: Fri Jun 24, 2022 2:36 pm
pasadena wrote: Fri Jun 24, 2022 2:04 pmThe only thing you'd miss is the ability to deposit cash...
This is normally true, but Cap One offers a creative way to deposit cash into their online 360 checking account by partnering with CVS, you can deposit cash at any CVS store.
Nice, I didn't know that. I personally don't use cash much at all, and never get paid big amounts of cash, so I've never even had to ask myself what to do with it. But I get some people might.
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Re: How much would you pay to bank locally?

Post by homebuyer6426 »

Basically the only time I was ever walking into my physical bank location in the last 10 years was when I needed rolls of quarters for the laundry machines. Now I own a house and laundry machines so that is gone too.
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homebuyer6426
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Re: How much would you pay to bank locally?

Post by homebuyer6426 »

LittleMaggieMae wrote: Fri Jun 24, 2022 2:35 pm
Candor wrote: Fri Jun 24, 2022 2:23 pm I would switch all those 'autopays' to a rewards cc and move on.
FYI: I'd verify if there were any fees/charges incurred by using a CC to pay the "autopays". My local utilities charge a fee if payment is made with a Credit Card - it's more than than the 1% (or even 2%) cash back reward. And Utilities are usually a monthly bill...
My water utility charges for use of a credit card, but as of recently they started charging even more for use of a check.
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JoeRetire
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Re: How much would you pay to bank locally?

Post by JoeRetire »

jco wrote: Fri Jun 24, 2022 1:47 pm How much would you pay to bank locally?
I pay nothing to bank locally. I don't intend to pay more.

I use both a local and an online bank. I have minimal funds in one, and the rest in the other.
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afan
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Re: How much would you pay to bank locally?

Post by afan »

I think by "pay", the OP meant "accept lower interest rates on deposits."

Like many, we keep some etfs at the bank and get "free" services in return. I happened to go to a physical bank location today to pick up a cashier's check. Quick, easy and "free."

We have an online bank as well. To get a cashier's check, you have to order one and have it sent. In-person was easier.

We keep only a small amount in a checking account so the difference in interest earned is trivial.
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arcticpineapplecorp.
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Re: How much would you pay to bank locally?

Post by arcticpineapplecorp. »

jco wrote: Fri Jun 24, 2022 1:47 pm But switching all those autopays will also be a big hassle.
And that's what they're counting on. It's called inertia.

To answer your question : $0.
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CAsage
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Re: How much would you pay to bank locally?

Post by CAsage »

homebuyer6426 wrote: Fri Jun 24, 2022 2:54 pm My water utility charges for use of a credit card, but as of recently they started charging even more for use of a check.
No way - do they actually charge for mailing them a check, or is it paying in person? An actual paper check (how quaint). For some strange depression-era (thanks, Dad) psychology, I feel best paying all my utilities via direct withdrawal from checking. I set those up the minute I could. None of them (SoCal Gas, SCE, city water, city trash) charge for direct debit, but they would if I charge it to a card. Strangely enough, my "subscriptions" like Netflix, Amazon, Cell phone etc do not charge a surcharge to put on a credit card. None of these are particularly onerous to move, though one does have an inordinate number of accounts to log in and track....
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Re: How much would you pay to bank locally?

Post by SmallSaver »

I think some posters are perhaps missing the point of "pay?" Looks like OP is talking about opportunity cost.

I place a pretty high premium on local banking. I do everything online, I'm only going in if there's a problem. That's rare, but if one comes up I'd much rather deal with a good local FI than a major national. One timely example: I needed to get a signature guarantee to make a change to my Treasury Direct account. No problem, 15 minutes in and out. That said, you need a good local bank, not all are.

Their interest rates don't bother me because I don't expect any return on money in my bank account, I look to other places for that. Just enough cash for a comfortable float on bills.
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Re: How much would you pay to bank locally?

Post by willthrill81 »

I would pay nothing.
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hudson
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Re: How much would you pay to bank locally?

Post by hudson »

$1 per month because
Great credit Union!
Safe deposit box
Cash machines everywhere
Estate planning services
Other services that I rarely use….but could come in handy like notary services.
3 minutes away

I don’t care that their rates are low because I also use other FDIC financial institutions that have top rates…a few mouse clicks away.
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Re: How much would you pay to bank locally?

Post by manlymatt83 »

CAsage wrote: Fri Jun 24, 2022 1:54 pm Not one thin dime. With the rare exception (which I have never personally experienced, which is Medallion signature or depositing massive amounts of cash), I have never seen an advantage to a physical branch. With Auto-deposit of my former paycheck (and now retirement income), ATM, paying bills online.... Banking has changed over the last 40 years. It's a commodity. Yes, changing automatic payments is a PIA, but I get to do that when my credit card gets compromised periodically... I shop for CD rates at any CU nationwide, and keep my "banking" at Alliant (decent rates, decent service).
Also like Alliant. I keep an account at Schwab for International ATM fees and as a backup. Done ✅
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Re: How much would you pay to bank locally?

Post by iamblessed »

I would loose some interest to bank at my local credit union. I am guessing less than $75 year. That is if I were to only use them. I love the credit union so I would not mind that much. But I go other places to get every cent I can. It would not be a big deal in my life but I was raised to get money working.
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Re: How much would you pay to bank locally?

Post by UNCHEEL »

For many years after my last corporate move, I continued banking at the credit union in my former location. With on-line banking and mobile deposits, there wasn't much incentive to change all the automated links in/out of the account. But, after several years, I did eventually make the change because the local credit union is easy to deal with and had good mortgage rates. Technically, I pay $12/year to use their checking, so it's not exactly a big expense and the fee goes to their charity.

One other consideration that you might keep in mind is availability of a Safe Deposit box. I keep one for documents, data back-up, and jewelry/collectible coins that don't need to be sitting around the house.
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jco
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Re: How much would you pay to bank locally?

Post by jco »

SmallSaver wrote: Fri Jun 24, 2022 5:24 pm I think some posters are perhaps missing the point of "pay?" Looks like OP is talking about opportunity cost.
Yes, I really meant opportunity cost but I phrased my question poorly.

Regardless, it seems a lot of bogleheads minimize the opportunity cost of banking locally by keeping only small amounts of money in their local bank.
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Watty
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Re: How much would you pay to bank locally?

Post by Watty »

I keep my banking separate from my investments and since I retired I only keep a few months expense at my local bank. Before I retired I typically only had one months expenses in my local bank.

They do not charge a fee because I qualify for free checking with an automatic deposit but since my balance is modest the lost interest is minimal.
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Re: How much would you pay to bank locally?

Post by wander »

OP, did you mean you pay because local pay less interest rate than an online bank and not the actual fees? I don't think fees exist with bank anymore but some banks require a balance; however, if you are talking about $50-100 difference paid by banks, then you may have too much cash in a bank.
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Re: How much would you pay to bank locally?

Post by ClassII »

Well I just had to get a Medallion Guarantee and for once it was easy peasy at my local BofA branch. I was actually shocked considering how worthless they usually are in there. Granted their rates are terrible but they’re basically just a hub for paychecks to go in and money get spread around from there.

I just don’t see the point of chasing savings accounts. They’re usually somewhere between zero and ”angel dancing on the head of a pin” sized returns and Id just as well invest in I-bonds for an emergency fund.

BofA works for me because they’re everywhere, I get a great credit card reward, and their app is pleasantly not awful. What more can you ask for out of a checking account?
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Re: How much would you pay to bank locally?

Post by Katietsu »

Well I am about to find out. If my local bank stays at essentially 0% interest, I will be losing close to $100 a month vs my HYSA. In the past, the difference was less than $25 a month.

I do not use the physical branch often. But I view it as an insurance policy or service contract for when I do.
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Re: How much would you pay to bank locally?

Post by Flobes »

I maintain a checking account at a nearby B&M, a local bank with branches scattered among the towns in the region. Checking account is free for anyone older than 50. Hassle-free signature guarantees and Bond redemptions. They even sort coins for free. And offer free use of their fax machine.

Very community-centered: rewards for good report cards, funding local celebrations, supporting nonprofits, etc. "Everyone knows your name" casual, with convivial (gossipy) tellers. Free lollipops and dog biscuits (and sometimes donuts!). Nimble response to local emergencies and tragedies.

So I keep my checking account there, as I have for decades, because I live here, and my community deserves a bank that cares and knows who we are.
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Re: How much would you pay to bank locally?

Post by Afty »

I’ve been online banking for over a decade. Have not felt the need for a local bank in that time.
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Re: How much would you pay to bank locally?

Post by Cruncher »



Does life even use the "¢" symbol anymore?

I had to search for it.
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Re: How much would you pay to bank locally?

Post by z3r0c00l »

All I need is an ATM occasionally, no need to bank locally at all. The must readily automated job there is.
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LittleMaggieMae
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Re: How much would you pay to bank locally?

Post by LittleMaggieMae »

homebuyer6426 wrote: Fri Jun 24, 2022 2:54 pm
LittleMaggieMae wrote: Fri Jun 24, 2022 2:35 pm
Candor wrote: Fri Jun 24, 2022 2:23 pm I would switch all those 'autopays' to a rewards cc and move on.
FYI: I'd verify if there were any fees/charges incurred by using a CC to pay the "autopays". My local utilities charge a fee if payment is made with a Credit Card - it's more than than the 1% (or even 2%) cash back reward. And Utilities are usually a monthly bill...
My water utility charges for use of a credit card, but as of recently they started charging even more for use of a check.
My City (who I pay for water, trash pickup, and sewerage in one bill) started accepting credit card payments for this bill about two years ago. There's no charge for using a credit card IF you pay thru the "portal" or link from the City's web page. You can also pay via an "e-check" which I assume is a one time pull from your checking account. I was surprised and happy when the "pay by credit card with no fee" became available. I do still get a snail mail paper bill and I could continue to pay by mailing back a check (or going into City Hall and paying with a check or cash) with no fee/charge.
My City has a population of 50K - so I suspect offering the no fee credit card payment was cost effective (as it dramatically decreases manual processing of payments).

The electric and natural gas providers all charge a fee for payment by credit card. I still pay a landline phone bill - and that too incurs a fee if I use a credit card to pay it.
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Re: How much would you pay to bank locally?

Post by JoMoney »

The last two bank accounts I opened paid me a couple hundred dollar new account bonus. Them paying me $200 is enough incentive to open an account, redirect some portion of my paycheck direct deposits and rent payment withdrawals for awhile.
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Re: How much would you pay to bank locally?

Post by lws »

I pay one bank for a safe deposit box.
The others pay me.
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Re: How much would you pay to bank locally?

Post by NYCaviator »

jco wrote: Fri Jun 24, 2022 8:13 pm
Yes, I really meant opportunity cost but I phrased my question poorly.
Interest rates are still low enough that unless you have a TON of cash, "lost" interest is negligible. Do what is most convenient. I have a local bank only because we needed business accounts, and there weren't any decent online business banks until recently. Now that Amex is offering a business account, I think we are going to consolidate to Schwab and Amex. I'm all about simplifying and minimizing.

I realized I have never actually been in a branch of our local bank. Yet, when I walk the dogs on Friday/Saturday by the local Chase, the line is wrapped around the block with people depositing paychecks. It blows my mind when you can do that at home on your smartphone and not waste a bunch of time. I honestly have no idea what people use a local branch for unless you work for tips/ own a cash business where you need to make cash deposits.

My local bank has a bad website/app experience, it takes longer for them to "process" check deposits on the app, their interest rate is 0.1%, and you can only reach them by phone from 9a to 5p M-F. Compare that to Schwab/Amex where you can get instant deposits, 24/7 phone support from US based reps, and great apps/websites. I really don't get the love for local banks.

To me, it isn't worth keeping an inconvenient or expensive local account just for the rare occasion I "may" need a cashiers check or medallion signature guarantee. Simplicity and consolidation is most important to me, and I get better rates and service with online banks.
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Re: How much would you pay to bank locally?

Post by JackoC »

MathWizard wrote: Fri Jun 24, 2022 2:16 pm I don't pay anything.

You are describing an opportunity cost. Missed interest.
Which is just as much a cost: getting 0% and getting 0.75% and paying a non-deductible fee equal to your after tax difference beween 0% and .75% on the same balance is the same thing. So I wonder if all the responses saying $0 are literally true. However the cost can be very small. For example my most 'local' bank is Bank of America, several blocks walk. I deal with BOA/Merrill mainly for credit card rewards via Preferred Rewards at Platinum Honors level via ETF value at Merrill. At PH level there's no min balance at BOA so it's my choice to keep average ~$1.5k there at 0% for convenience of stuff where'd I go there (get denominations other than $20's, medallion gtee, overseas wire, etc). That costs around ~$14/yr at my tax rate vs VMFXX (1.38% SEC yield mostly not state taxable) as benchmark for near-best you can get on safe money**. My main checking account at small bank 20 minutes drive away pays 0.75% but that's actually costing my much more relative to VMFXX than the BOA account, because balance is much bigger. But I think it's worth it compared to time/effort/inconvenience of managing checking balance to near zero. Also there are miscellaneous unknown/unknowns about access to money at banks and brokers so better to have more than a little at both IMO.

Therefore, I'd be exaggerating to say 'I don't pay one thin dime' to deal with B&M banks but I don't pay much, and of course no monthly fees.

*I do also pay Merrill a tiny amount via their worse rate on cash than VMFXX for small distributions for a few days till I reinvest them, but that's a few bucks a year vs $100's more in CC rewards v. bog simple 2-2.5% no fee credit card, and I pretty much have to incur that expense to get the higher rewards, whereas I don't have to have a balance in BOA checking.
**there's always something better, tying it up in longer T-bills (much of our cash reserve is 6 mo/1 yr bills now), absolute best online savings accounts (but current rates likely to be overtaken by VMFXX at latest after Fed meeting next month) or a few bank offers of several % on $10k or something max and you jump through hoops every month (not worthwhile to me) but VMFXX is my benchmark at the moment.
Last edited by JackoC on Sat Jun 25, 2022 9:18 am, edited 1 time in total.
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: How much would you pay to bank locally?

Post by dbr »

I have no problem losing interest on a checking account at a local bank that is convenient for various services over the years, in some cases more than just convenient.
homebuyer6426
Posts: 1833
Joined: Tue Feb 07, 2017 8:08 am

Re: How much would you pay to bank locally?

Post by homebuyer6426 »

CAsage wrote: Fri Jun 24, 2022 5:24 pm
homebuyer6426 wrote: Fri Jun 24, 2022 2:54 pm My water utility charges for use of a credit card, but as of recently they started charging even more for use of a check.
No way - do they actually charge for mailing them a check, or is it paying in person? An actual paper check (how quaint). For some strange depression-era (thanks, Dad) psychology, I feel best paying all my utilities via direct withdrawal from checking. I set those up the minute I could. None of them (SoCal Gas, SCE, city water, city trash) charge for direct debit, but they would if I charge it to a card. Strangely enough, my "subscriptions" like Netflix, Amazon, Cell phone etc do not charge a surcharge to put on a credit card. None of these are particularly onerous to move, though one does have an inordinate number of accounts to log in and track....
My small town's water doesn't offer that option, as far as I can tell the only way to avoid the fee is to show up at their office with a fistful of cash. Not sure anyone actually does that though. They're pretty ridiculous, they also have a $200 account setup fee, which costs the same as 2 years of water at my house.
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iamblessed
Posts: 1808
Joined: Sat Jun 09, 2018 11:52 am
Location: St. Louis

Re: How much would you pay to bank locally?

Post by iamblessed »

homebuyer6426 wrote: Tue Jun 28, 2022 7:34 am
CAsage wrote: Fri Jun 24, 2022 5:24 pm
homebuyer6426 wrote: Fri Jun 24, 2022 2:54 pm My water utility charges for use of a credit card, but as of recently they started charging even more for use of a check.
No way - do they actually charge for mailing them a check, or is it paying in person? An actual paper check (how quaint). For some strange depression-era (thanks, Dad) psychology, I feel best paying all my utilities via direct withdrawal from checking. I set those up the minute I could. None of them (SoCal Gas, SCE, city water, city trash) charge for direct debit, but they would if I charge it to a card. Strangely enough, my "subscriptions" like Netflix, Amazon, Cell phone etc do not charge a surcharge to put on a credit card. None of these are particularly onerous to move, though one does have an inordinate number of accounts to log in and track....
My small town's water doesn't offer that option, as far as I can tell the only way to avoid the fee is to show up at their office with a fistful of cash. Not sure anyone actually does that though. They're pretty ridiculous, they also have a $200 account setup fee, which costs the same as 2 years of water at my house.
I would gladly pay $200 if I could buy two years of water for $200. I am guessing my bill is close to $660 a year.
EnjoyIt
Posts: 8272
Joined: Sun Dec 29, 2013 7:06 pm

Re: How much would you pay to bank locally?

Post by EnjoyIt »

vectorizer wrote: Fri Jun 24, 2022 2:13 pm Doesn't have to be either/or. I keep a checking account at my long-term local credit union by "paying" a minimum $500 balance. Why? More convenient ATM network, ability to deposit or withdraw large amounts of cash, and access to free signature guarantees and notary services. Except for the ATM network, I don't use those features very often, but when I need I need it. FWIW, my main bank is Ally where I have checking, bill pay, savings, and short-term IRAs; overall about 100 times more at Ally than at the CU. Both banks are connected to each other and to Vanguard, FWIW.
+1

The question for OP is….how much are you willing to not gain in interest for simplicity?

Some are willing to jump through some hoops for $100. Others aren’t willing to do the same even for $1k. So, do you have the free time and how much is that time worth to you?
A time to EVALUATE your jitters: | viewtopic.php?p=1139732#p1139732
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