Poll: Ready to drop brick-n-mortar banking?

[Bir48die]

Sorry, not going strictly online. We’re not that predictable

 

[omni550]

B&M are good for things that are more the exception than the rule, such as:

1) Medallions

2) Foreign funds - getting, exchanging, and for crisp US currency for travel to 3rd world countries (where worn/beat-up currency is rejected).

3) When acting as Power of Attorney on older relative's account in a foreign country. (Also, when placing their funds in higher-interest-paying certificates, etc.)

4) Holding a mortgage (at 2.89%), I was able to walk into my B&M bank late in Dec. 2017 and speak to a human to avail myself of last-minute tax-saving strategies as a result of the new 2018 Tax Bill.

5) In a foreign country where ATMs with English text are not available

6) In a foreign country where English is rarely spoken. Gestures, body language, and cash communicated to the teller what we wanted.

omni

 

[Car-Guy]

If a person has a hobby that has a sale or purchase transaction of $3-$10k cash (not checks) like buying or selling a used car, how do people with no B&M bank make that deposit or withdrawal in cash? ATM's have limits right?

This is the biggest holdback of mine to making the switch to on-line.

Bingo, that's the main reason why I have never considered switching to all on-line banking. A couple of my hobbies often involve large cash transactions and I'm not keeping that kind of cash around in an old shoe box. Last year I'll bet my bank filled out at least ~20 CTR's on me. That along with needing a SDB and frequent notary services and I'm sticking with B&M banking.

 

[COcheesehead]

If a person has a hobby that has a sale or purchase transaction of $3-$10k cash (not checks) like buying or selling a used car, how do people with no B&M bank make that deposit or withdrawal in cash? ATM's have limits right?

This is the biggest holdback of mine to making the switch to on-line.

You give the cash to someone who will write you a check. You then use the auto deposit app and put the check in your account.

 

[pb4uski]

I voted for "I’ve already quit using brick-n-mortar banks." even though it isn't totally true. When we moved into our retirement home in 2011 it was 25 miles from our main home and the bricks-and-motar credit union that we have dealt with for over 30 years. While we have kept our money at that CU (it merged with another CU a few years ago)... I rarely step foot in it and don't really "need" to.

I guess that at most I spend 10 minutes a year in a brick-and-motar bank and I could easily not... sometime is it just more convenient if my travels happen to take me by it.

 

[Scuba]

We went without a physical bank for years, but got one nearby when we opened a HELOC in 2014. The safe deposit box is the most useful service for us. Also as others have mentioned, getting cash in desired denominations is almost impossible without having a bricks and mortar bank.

 

[RunningBum]

And it may seem silly, but it seems unfair to me to use so little of a banks services and not other services. Other patrons are paying for my privileges? YMMV

I don't follow. You rarely or never use bank services, but it's unfair that other patrons are paying for your privileges? I figure that I am keeping a bit of money in my B&M bank account and use just a bit of their services. A fair trade-off for each of us. If you don't find any of the reasons given here compelling to keep your bank account, drop it.

I found sergio's list pretty complete for me, and there were a few other reasons given by others that made sense to me. I used to have problems occasionally with using the phone app to deposit checks, so I still want to have the local bank option for that. And I did get a medallion signature last year. A couple years ago BofA shut down a couple of the locations closest to me, so I switched over to Wells Fargo.

 

[street]

Why I keep $3k in a checking account at a local brick and mortar bank:

1. Can deposit cash

2. Can withdraw large amounts of cash ASAP (never needed this, but just in case)

3. Ability to withdraw $100 bills (for wedding gifts) or rolls of quarters (super useful when I lived in apartment and paid for laundry).

4. Can get a cashier's check or certified check ASAP

5. Notary services

6. Safety deposit box

The VAST majority of my cash is held at Ally. I just don't see the harm in keep a minimal connection with a brick and mortar bank.

For all the reasons above and more for me. Direct payments for billing, is nice to be able to talk to someone in person of an issue and question, and if I ever need a loan they know me. It doesn't cost me one penny for all the services with my bank so it works for me. It is another financial tool that works for some but not for all.

 

[PatrickA5]

In the last 2 years we've used our regional B&M Bank for the following:

Safe Deposit Box

Medallion Sig

Notary

Witnesses (for a POA)

Larger cash withdrawals (and deposits)

Coin Deposits (ours has a self serve machine)

Billpay

That's all I can think of. We probably go 3 or 4 times a year for something. Everything is free. They still make a few bucks off of interest on our small amount in checking.

The majority of our cash is in a Vanguard Checking account (Prime Money Market). When I need more cash in B&M, I just write a check to myself and do a mobile deposit. Available almost immediately - always same day.

I can't think of a reason to get rid of our B&M account (other than about $40 of interest). The free safe deposit box is worth more than that (to me anyway).

 

[audreyh1]

One simple reason - my safe deposit boxes. Very necessary.

I’ve maintained my long-term relationship with a large national bank because I use their safe deposit boxes plus they are my main checking/bill pay. Their online site is excellent and they also have a couple of excellent credit cards I use. But all my savings and investments are in other online financial institutions.

I have relationships with two brick and mortar banks, three online banks, three online-for-me credit unions, and two (online for me) brokerages both of which offer me a checking type account with no-fee ATM access worldwide and billpay.

At some point I will probably drop down to one of each but no credit unions. I’ll have to see if I still need a safe deposit box or how to deal with that.

BTW - you don’t need a brick and mortar bank for checks. All online banks that offer checking will allow you to order checks, and most of them send them anyway when you open an account.

I rarely use an ATM unless traveling overseas, and even though we have ATM cards that reimburse all fees, when home I prefer to go to the local branch and withdraw money with no fees instead of incurring the typical 3% ATM fees which always seem outrageous to me even though I would be reimbursed.

We move enough money through our no interest/no fee main checking account that I’m sure the bank is doing fine on us plus we pay pretty good fees on our large safe deposit boxes. If they offered decent savings rates I would keep more money there. Somehow I don’t believe they lack in deposits because like most large national banks they are very miserly in terms of savings and CD rates.

 

[audreyh1]

I’ve noticed that mobile deposits have a limit on the size of the deposit. I ended up depositing a check for my brother because it way exceeded the mobile deposit limit, and given the holidays we decided the easiest thing was for me to take it to my local branch of his bank.

 

[thepalmersinking]

If there is a problem such as account takeover or fraud. It is always better to go and talk to a live person. If the internet is compromised , you can always walk in and make a withdrawal.

 

[btdt22]

Been online only with USAA since online existed.

Same with me- 15 to 20+ years now without a local brick & mortar bank. USAA federal savings bank reimburses me for all ATM transaction costs. They will also overnight six digit 'bank' checks if I find something I can't live without, and the seller does not accept direct deposit, As to cash on hand, most ATM's provide up to $500 in cash and I keep a small reserve on hand just in case.

As to notaries, most local businesses I spend money at have a notary on staff and are happy to keep me as a regular customer. I also use credit cards for almost every transaction I make over $10 given the insurance, warranty, and return options card issuers provide. Some even provide replacement and repair services, not to mention cash back and 'points". The secret is to never pay interest like most card users do, by paying off within the 30 day free loan period.


We keep a fire proof safe for our important document 'originals' with copies in the 'cloud' and/or at our local county recorder's office. Valuables that are to 'expensive' to share with friends and family are sold, as keeping something hidden in a safe-deposit box until I die seems a tad ludicrous, not mention USAA has great homeowner's insurance along with riders for extra high value items.

 

[audreyh1]

And my bank eliminated safety deposit boxes almost 20 years ago, so we have a safe now. Good enough that I don't see a need to have a safety deposit box anymore.

I strongly believe in using offsite storage. We store duplicate hard drive backups at the bank and change out every so often. Also most of our more sensitive papers from home when we travel in addition to the documents one usually stores long term. Whatever we have at home I’m not sure it would survive a fire, so I like having duplicates at the bank.

 

[COcheesehead]

I’ve noticed that mobile deposits have a limit on the size of the deposit. I ended up depositing a check for my brother because it way exceeded the mobile deposit limit, and given the holidays we decided the easiest thing was for me to take it to my local branch of his bank.

That is bank specific. My online bank has accepted checks from me in the high 5 figures without issue.

 

[Midpack]

I strongly believe in using offsite storage. We store duplicate hard drive backups at the bank and change out every so often. Also most of our more sensitive papers from home when we travel in addition to the documents one usually stores long term. Whatever we have at home I’m not sure it would survive a fire, so I like having duplicates at the bank.

I don’t disagree, but when our bank eliminated our safety deposit box along with all customers, we had to resort to a safe. Can’t always, but we avoid hard copies as much as possible, there’s only a few docs we must still keep in hard copy. I don’t want to put our data in the cloud, but it’s tempting without a safe deposit box...

 

[Midpack]

I strongly believe in using offsite storage. We store duplicate hard drive backups at the bank and change out every so often. Also most of our more sensitive papers from home when we travel in addition to the documents one usually stores long term. Whatever we have at home I’m not sure it would survive a fire, so I like having duplicates at the bank.

I don’t disagree, but when our bank eliminated our safety deposit box along with all customers, we had to resort to a safe. Can’t always, but we avoid hard copies as much as possible, there’s only a few docs we must still keep in hard copy. I don’t want to put our data in the cloud, but it’s tempting without a safe deposit box...

But maybe we should reconsider.

 

[audreyh1]

If a person has a hobby that has a sale or purchase transaction of $3-$10k cash (not checks) like buying or selling a used car, how do people with no B&M bank make that deposit or withdrawal in cash? ATM's have limits right?

This is the biggest holdback of mine to making the switch to on-line.

Yes, ATMs have limits, and so does mobile deposit. If you can’t do stuff by ACH or wire, you need to walk into a local branch.

 

[COcheesehead]

I don’t disagree, but when our bank eliminated our safety deposit box along with all customers, we had to resort to a safe. Can’t always, but we avoid hard copies as much as possible, there’s only a few docs we must still keep in hard copy. I don’t want to put our data in the cloud, but it’s tempting without a safe deposit box...

We put a safe in long ago. Hidden in the basement. My wife loves it. Stores her jewelry in it along with other important stuff. We get more convenient use from it than we would from a safe deposit box.

 

[audreyh1]

I forgot about the free coin machines, they’re nice to have access to in a setting that’s financially-oriented (vs a wide-open grocery store, etc).

The coin counter at my main grocery store gives Amazon or iTunes (or other retailer) amounts for no cut, so we happily use that on the very rare occasion it’s needed. I don’t think any of our local branches have coin counters as they are small branches.

 

[audreyh1]

You give the cash to someone who will write you a check. You then use the auto deposit app and put the check in your account.

There are limits on mobile deposit too. Chase, for example, limits mobile deposit checks to $5000. This is a pretty serious limitation.

Just like there are ATM limits on withdrawals. Typically $1000 a day. Or can quite a bit less per withdrawal depending on the machine.

Asking someone to deal with my cash and write me a check feels like an imposition.

 

[audreyh1]

I don’t disagree, but when our bank eliminated our safety deposit box along with all customers, we had to resort to a safe. Can’t always, but we avoid hard copies as much as possible, there’s only a few docs we must still keep in hard copy. I don’t want to put our data in the cloud, but it’s tempting without a safe deposit box...

Our data is quite large - most of it numerous images and video files that would cost quite a bit of iCloud storage and also slow to upload, download. These would be personally devastating to us to lose as it’s almost 2 decades of nature photography and video.

Not to mention numerous sensitive personal files/dos/records that we prefer not to store on a cloud even though it’s not nearly as large.

 

[COcheesehead]

There are limits on mobile deposit too. Chase, for example, limits mobile deposit checks to $5000. This is a pretty serious limitation.

Just like there are ATM limits on withdrawals. Typically $1000 a day. Or can quite a bit less per withdrawal depending on the machine.

Asking someone to deal with my cash and write me a check feels like an imposition.

As I mentioned above, my bank has taken checks in excess of $90k through my mobile app.

 

[Offgrid Organic Farmer]

My pension and my Dw's pension both flow into a savings account with a local brick&mortar bank. They could flow into any bank, even an online bank would do.

We get some cash income from Farmer's Markets, and we are landlords some tenants pay in cash and some pay with a check. So it is handy for us to deposit cash & personal checks at a brick&mortar bank.

I am interested in the idea of using an online bank, but I would still need to be able to handle cash.

 

[JustCurious]

Withdrawing a large amount of cash ($1,000+) in denominations greater than $20 bills. I went into a bank that was not mine with a bunch of $20s wanting to just trade it for a few hundreds, and they wouldn't do it because I wasn't a customer of theirs.

Here is the solution to this issue... I use Schwab Bank for online banking and I do not have a local brick and mortar bank and as you pointed out, one of the potential issues with not having a local bank is getting cash, and in particular getting large amounts of cash in denominations other than $20 from an ATM. Here is what I have learned in order to resolve these issues.

I can get a cash advance from the Schwab debit visa card (not a credit card) by going inside a local bank (of which I am not a customer) and going to a teller and requesting a cash advance. Apparently the local bank does not know or care whether the cash advance is being advanced from a credit card or a debit card. The teller then transacts a cash advance using my debit card and the money is withdrawn directly out of my Schwab checking and hands me the cash in the denominations of my choice. The benefit to getting cash this way is 1) you avoid the ATM transaction limit (which is usually $400 - $500 depending on the ATM), and 2) you can get whatever combination of denomination bills you want, whereas most ATMs only give you $20 bills, and 3) you do not have to pay an ATM fee. To be clear, this is not a credit card cash advance, this is a debit card cash advance, so there are no interest charges. I was not aware that a debit card cash advance was an option until it was explained to me by a very helpful Schwab customer service rep.

I should also note, based on my research, that most U.S. banks do offer debit card cash advances, but a few don't, including Citibank and Suntrust (again, based on my research, not based on personal experience). I can only say from my personal experience that there is a Chase branch close to me that does provide the service.

As a Schwab customer, I do not pay a fee, either to the local bank or to Schwab. Regarding the cash advance fee, the local bank from which you draw money is still charging a fee through the visa cash advance system (although it is a debit card cash advance, it uses the visa cash advance system), and that fee is being paid by Schwab to the bank as a fee for using them to advance cash to you, but the difference is you as the customer do not see the fee and do not pay the fee, it is being paid behind the scenes between Schwab and the local bank. This is different from the situation where you use the ATM and you do have to pay a fee (usually $3) and then you get an entry on your statement for $303.00 when you withdrwaw $300 from an ATM, and then at the end of the month you get a $3 credit from Schwab for the fee. The benefit to using the card as a cash advance is for spreadsheet nerds like me, when you get a cash advance, you only see a $300 transaction on your statement and it is much cleaner from a bookkeeping perspective and there is no need to account for the $3 with another transaction to balance out your records.

Here is another tip: Some banks are now deploying newer more advanced ATMs that have higher cash limits, and allow the selection of different denominations of bills, not just $20s. For example, I recently went to a local Chase branch that has a newer free standing ATM inside the lobby next to the teller windows that disburses $100s and $20s and I think $10s. A teller inside the bank explained that the cash limit for the outside ATM was $500 whereas the cash limit for the newer machine inside the lobby was $3,000. I was able to use the inside ATM to withdraw cash over $500 and get different denominations, the only denomination that I wanted that it did not have was $50s, but I was able to go to the teller window after withdrawing my cash and exchanging some of the $20s for $50s.