Keep grandfathered account with First Republic?

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Topic Author
manlymatt83
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Keep grandfathered account with First Republic?

Post by manlymatt83 »

I used to bank with First Republic for both personal and business banking. FR is a highly regarded commercial bank and is known for their customer service.

We recently moved the business account to American Express Business Checking to earn interest on our balances. Had nothing against First Republic, just didn’t need that level of service for our small online business.

I now have just a personal checking account left at First Republic. I moved my personal banking away to Alliant Credit Union last year but had kept this account open due to having the business account as well.

I went to go close my personal checking today and the banker mentioned that it has a waiver on it that waived the $3500 minimum balance forever. It seems the waiver was put in years ago but I never knew.

I’ve been trying to simplify my finance life down to only a handful of accounts. However, I know at some point in the future I may need something like First Republic again (Mortgage? Loan? Line of credit?) and having the legacy checking account that is grandfathered into no minimum balance might come in handy. I don’t know what I don’t know 🤷‍♂️

On the other hand, it could just turn into an account that sits there. I’m not sure if my “what if” situation will actually turn into something unless for some reason I can’t find another bank in the future that waives ATM fees or can provide the level of service I need.

Curious if anyone is familiar with this situation and can provide any advice. I do dream of simplification in finance and have been working toward that goal.
02nz
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Re: Keep grandfathered account with First Republic?

Post by 02nz »

Considering that the goal is to simplify, I'd say you're way overthinking this. :happy Does the account currently provide something you need? Seems like no. Do you really think a checking account will get you a substantially better loan rate at some future point? Seems very unlikely to me (and there are tons of other lenders out there). Close the account and be done. (FWIW I also had an account briefly with them, but it was only to take advantage of a bonus offer.)
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manlymatt83
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Re: Keep grandfathered account with First Republic?

Post by manlymatt83 »

02nz wrote: Fri Jun 24, 2022 6:34 pm Considering that the goal is to simplify, I'd say you're way overthinking this. :happy Does the account currently provide something you need? Seems like no. Do you really think a checking account will get you a substantially better loan rate at some future point? Seems very unlikely to me (and there are tons of other lenders out there). Close the account and be done. (FWIW I also had an account briefly with them, but it was only to take advantage of a bonus offer.)
Thanks for this advice! Will likely close. And yes, I tend to over think a lot of things in life. 😒
Nutmeg
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Re: Keep grandfathered account with First Republic?

Post by Nutmeg »

One reason to maintain a long-standing relationship is that you could find it easier to obtain a Medallion Signature Guarantee from a bank with which you have had a relationship than from a new bank, should you ever need one.
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manlymatt83
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Re: Keep grandfathered account with First Republic?

Post by manlymatt83 »

Nutmeg wrote: Sat Jun 25, 2022 12:43 am One reason to maintain a long-standing relationship is that you could find it easier to obtain a Medallion Signature Guarantee from a bank with which you have had a relationship than from a new bank, should you ever need one.
Will I ever actually need a medallion signature though? I’ve transferred investments from Schwab to vanguard for example and didn’t need a signature.
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8foot7
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Re: Keep grandfathered account with First Republic?

Post by 8foot7 »

If it has a perpetual waiver, throw $250 in there and forget about it. People get obsessed with this “simplicity” stuff but having a free checking account somewhere should have no mental burden to you.
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anon_investor
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Re: Keep grandfathered account with First Republic?

Post by anon_investor »

8foot7 wrote: Sat Jun 25, 2022 10:37 am If it has a perpetual waiver, throw $250 in there and forget about it. People get obsessed with this “simplicity” stuff but having a free checking account somewhere should have no mental burden to you.
+1 to this ^^^.
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manlymatt83
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Re: Keep grandfathered account with First Republic?

Post by manlymatt83 »

anon_investor wrote: Sat Jun 25, 2022 10:40 am
8foot7 wrote: Sat Jun 25, 2022 10:37 am If it has a perpetual waiver, throw $250 in there and forget about it. People get obsessed with this “simplicity” stuff but having a free checking account somewhere should have no mental burden to you.
+1 to this ^^^.
Another thing for an eventual estate to have to deal with closing?
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anon_investor
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Re: Keep grandfathered account with First Republic?

Post by anon_investor »

manlymatt83 wrote: Sat Jun 25, 2022 10:46 am
anon_investor wrote: Sat Jun 25, 2022 10:40 am
8foot7 wrote: Sat Jun 25, 2022 10:37 am If it has a perpetual waiver, throw $250 in there and forget about it. People get obsessed with this “simplicity” stuff but having a free checking account somewhere should have no mental burden to you.
+1 to this ^^^.
Another thing for an eventual estate to have to deal with closing?
Is there a 0 chance you will do business with that bank again? I kept a checking account open with a bank with a nearby brick and mortar branch that I barely use (Ally Bank is my "hub" bank). I keep $100-200 dollars in it. But it has been helpful for random occational stuff: signature guarantee/notary services/cash deposit/same day certified check. Also helpful for in-person check deposit when Ally's app would not accept a mobile deposit of a check.
123
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Re: Keep grandfathered account with First Republic?

Post by 123 »

manlymatt83 wrote: Sat Jun 25, 2022 10:46 am
anon_investor wrote: Sat Jun 25, 2022 10:40 am
8foot7 wrote: Sat Jun 25, 2022 10:37 am If it has a perpetual waiver, throw $250 in there and forget about it. People get obsessed with this “simplicity” stuff but having a free checking account somewhere should have no mental burden to you.
+1 to this ^^^.
Another thing for an eventual estate to have to deal with closing?
If an account has no activity for some number of years (it varies) most (all) states have statutes that provide for the funds to be escheated to the state. I don't think the bank would keep the account open (for grandfathering purposes) without funds in it.
The closest helping hand is at the end of your own arm.
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8foot7
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Re: Keep grandfathered account with First Republic?

Post by 8foot7 »

manlymatt83 wrote: Sat Jun 25, 2022 10:46 am
anon_investor wrote: Sat Jun 25, 2022 10:40 am
8foot7 wrote: Sat Jun 25, 2022 10:37 am If it has a perpetual waiver, throw $250 in there and forget about it. People get obsessed with this “simplicity” stuff but having a free checking account somewhere should have no mental burden to you.
+1 to this ^^^.
Another thing for an eventual estate to have to deal with closing?
If you're under 65, then this is not a reasonable concern.
Secondly, at some point this account will escheat to the state if you literally do nothing with it. In my state it's 5 years of inactivity, I think. Bonus, you don't have to bother closing it.
Another point: who cares? You're dead. If First Republic never hears about your death, what are they going to do? If they do hear about your death, they'll presumably close it, yes? And if they don't, why do you care?

I am reminded of dealing with AT&T after my mother-in-law died. She had a bunch of equipment at her house and we called to close the account, pay off her last month of charges, and arrange for the equipment to go back. After we paid her bill so that the account had a zero balance, I asked the rep to send someone to come get the TV boxes, remotes, Internet router, and the like.
"We don't do that, sir. You'll need to package all of that up and ship it back to us, or you will need to return it to an AT&T depot downtown."
"OK," I replied, "I guess you don't want this back because she's certainly not driving downtown to return it nor is she shipping anything."
"Unfortunately, sir, we would bill the account for the unreturned equipment."
"OK," I replied, "I think you're misunderstanding me - she's not paying this bill any longer, no matter what you want to charge to her account."
"If the bill went unpaid, we may turn the account over to a collections agency," the rep said sternly.
"Do you think a dead woman cares about her credit?"
"I'll file a ticket with the local installation department to see if they can come pick it up."
"That's great. If y'all would like your equipment back, it'll be on the front porch. You should pick it up before next Saturday as the estate sale is happening then and they're going to dump it beforehand if you don't."
"I'll make a note of that, sir."
Nutmeg
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Re: Keep grandfathered account with First Republic?

Post by Nutmeg »

manlymatt83 wrote: Sat Jun 25, 2022 9:23 am
Nutmeg wrote: Sat Jun 25, 2022 12:43 am One reason to maintain a long-standing relationship is that you could find it easier to obtain a Medallion Signature Guarantee from a bank with which you have had a relationship than from a new bank, should you ever need one.
Will I ever actually need a medallion signature though? I’ve transferred investments from Schwab to vanguard for example and didn’t need a signature.
Do you anticipate ever serving as agent under a power of attorney for someone, or as trustee for a trust? Those are the situations for which I have needed a MSG. I have also read that some people have needed MSGs for dealing with Treasury Direct, but I can’t address that from personal experience.
Topic Author
manlymatt83
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Re: Keep grandfathered account with First Republic?

Post by manlymatt83 »

Nutmeg wrote: Tue Jun 28, 2022 4:38 pm
manlymatt83 wrote: Sat Jun 25, 2022 9:23 am
Nutmeg wrote: Sat Jun 25, 2022 12:43 am One reason to maintain a long-standing relationship is that you could find it easier to obtain a Medallion Signature Guarantee from a bank with which you have had a relationship than from a new bank, should you ever need one.
Will I ever actually need a medallion signature though? I’ve transferred investments from Schwab to vanguard for example and didn’t need a signature.
Do you anticipate ever serving as agent under a power of attorney for someone, or as trustee for a trust? Those are the situations for which I have needed a MSG. I have also read that some people have needed MSGs for dealing with Treasury Direct, but I can’t address that from personal experience.
At some point, yes. Hopefully not for quite a while!
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