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

[Midpack]

We plan to relocate this year, and we’re wondering if it’s time to drop brick-n-mortar banking. I know that’s heresy to many here and I expect poll answer #3 will be the majority. For others:

• We don’t need them for loans anymore, they bundle and sell them anyway. There are online loans but I don’t envision taking on a loan again.
• We haven’t had savings accounts there for years, online bank yields are far better. Don’t need local banks for CDs or MMs either.
• I don’t care about being able to walk into a physical bank.
• We use the local ATM weekly, but online banks offer ATM/debit cards without fees. We could use credit cards instead of cash way more than we do too - like many younger folks.
• We use auto bill pay with every service we can. We still have to write a few checks, that might be the only obstacle?

For those not enamoured with brick-n-mortar banks - what am I missing?

 

[athena53]

Ummm... free notary services?

Seriously- that's about all I can think of; I've had on-line checking for years. Since they refund ATM fees, I can pretty much use any machine rather than having to look for one in a specific network.

 

[steelyman]

Ummm... free notary services?

That’s a good service, as are free medallion signature guarantees.

 

[Just_Steve]

Ummm... free notary services?

Seriously- that's about all I can think of; I've had on-line checking for years. Since they refund ATM fees, I can pretty much use any machine rather than having to look for one in a specific network.

Steelyman beat me to it.

 

[Chuckanut]

Safe deposit box?

 

[COcheesehead]

Haven’t had a brick and mortar bank in years. Don’t miss anything.

 

[Unpaintedhuffhines]

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.

That's about all I got.

 

[COcheesehead]

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.

That's about all I got.

I had this happen to me. You know who did it for me? I went to a Whole Foods. I explained it and they gladly exchanged the bills for me. Did it twice.

 

[target2019]

There might be a nice bonus waiting for you at a bank in your new location.
Having a relationship with a bank or credit union might be a good idea.

 

[sergio]

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.

 

[Another Reader]

In early October 2008, I drove to one large bank and withdrew a substantial amount of cash to pay a contractor renovating a rental. He banked with another large bank where I also had an account, so I drove to that bank and deposited the cash in his account. I wasn't 100 percent sure that day if ANY bank was safe, so I got the cash to him the fastest way possible.

If there is even a hint of a possibility of a bank run, I want to get there first and get out what I can before the regulators shut the pipeline. Can't do that with an online bank.

 

[LOL!]

I stopped using a B&M bank back in the 1990s. The I started using one again.

Every B&M bank is also an online only bank. One just has to not go inside the building.*

Also I haven't had a savings account anywhere in decades, so I simply do not care about interest rates on something I will not use.

*Not quite true. I got a roll of quarters once because a remote area I was going to only took quarters.

 

[MarieIG]

Currently using a combination.

My favorite "benefit" was at a bank which was located next to my old office. The had a great free coffee corner set up for customers. They also had a medallion guarantee, and there was a period of time after DF passed that I needed it a lot.


I tend to get better condition cash from a teller than the ATM machine. I still use cash, and need good bills for the LIRR ticket machines.


Two safety deposit boxes.


Pens.

Currently, I am still working and we have hot-and-cold-running notaries in our office, but when I retire I won't have that - so it is a benefit.

Being able to deal with a person when addressing an issue.

 

[RE2Boys]

Use a local bank (credit union really) with a checking account but like mentioned already, I generally keep only about $2K balance. I don't even have a check book for this account. My main checking account is through online Discover Bank. As many mentioned, local bank used for safe deposit box, obtaining or depositing cash, notary and medallion services. I move money in and out of the local bank through ACH as needed. Gives me decent flexibility with little to no cost.

 

[swakyaby]

That’s a good service, as are free medallion signature guarantees.

I recently found that the 3 brick and mortar banks my family does business with (Wells Fargo, Chase, US Bank) limits the dollar amount of the medallion signature guarantee to something like $25,000, $50,000, or $100,000. So when an out-of-state mutual fund company required 3 medallion signature guarantees to change the account ownership from a deceased parent to the estate trustee on an account > $100,000, it was difficult finding a business willing to provide one.

Do online bank checking accounts allow you to write personal checks, or is it only electronic transactions? I have a few sole proprietors (yard maintenance, piano tuner) that accept only cash or personal check.

 

[njhowie]

When I purchase a car, after putting as much as they allow on my 2% cash back credit card, I go to my nearest bank branch, and get a cashiers check for the balance. As a result of my relationship with the bank, I get cashiers checks (among other things) for no fees.

 

[COcheesehead]

In early October 2008, I drove to one large bank and withdrew a substantial amount of cash to pay a contractor renovating a rental. He banked with another large bank where I also had an account, so I drove to that bank and deposited the cash in his account. I wasn't 100 percent sure that day if ANY bank was safe, so I got the cash to him the fastest way possible.

If there is even a hint of a possibility of a bank run, I want to get there first and get out what I can before the regulators shut the pipeline. Can't do that with an online bank.

ATM?

 

[COcheesehead]

I recently found that the 3 brick and mortar banks my family does business with (Wells Fargo, Chase, US Bank) limits the dollar amount of the medallion signature guarantee to something like $25,000, $50,000, or $100,000. So when an out-of-state mutual fund company required 3 medallion signature guarantees to change the account ownership from a deceased parent to the estate trustee on an account > $100,000, it was difficult finding a business willing to provide one.

Do online bank checking accounts allow you to write personal checks, or is it only electronic transactions? I have a few sole proprietors (yard maintenance, piano tuner) that accept only cash or personal check.

Yes, checks and they are free.

 

[Cobra9777]

We keep some savings at Ally. But we use our Fidelity cash management account for all normal banking activity... like checking, direct deposit, bill-pay, free ATM, cash-back CC, and check deposit using mobile app. I guess technically, they do have a B&M location about 45 minutes away, but we've never been there. I'm not even sure what kind of transactions can been done there, if any.

We do keep $1500 parked in a Wells Fargo checking account (minimum to avoid fee). We rarely use it for anything except transferring money to/from the kids on occasion since they both use WF. We used their free notary service 2 or 3 times in recent years. And I deposited a large amount of cash once after selling a car. That's about it. I figure it costs us about $33/yr which is the interest we could earn on the $1500 at Ally. Pretty reasonable price for the convenience when needed.

 

[Dtail]

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.

Exactly my reasons and current usage.

 

[Aerides]

A good middle ground is TIAA (formerly everbank). They are primarily an online bank, including the rates and accounts/services/fees of an online only, but have a handful of B&M's, including one about 15 mins from me.

 

[Mark1]

No B&M Bank for me now for 3 years. Mostly use Fido checking for most transactions. Use Ally photo function for depositing checks. Have written big personal checks for car purchases with no issues. Obtain coins at car wash. Only real issue is ability to obtain large bills ($100, etc) like others have stated. I actually used Ally for Wire Transfer to close on house and it went very smooth.

 

[Midpack]

Not arguing, just trying to think this through.

Ummm... free notary services?

Seriously- that's about all I can think of; I've had on-line checking for years. Since they refund ATM fees, I can pretty much use any machine rather than having to look for one in a specific network.

Rarely needed but I've gotten docs notarized at banks I have no relationship with without a problem. But I'd be happy to pay someone on those rare occasions when I need it.

Safe deposit box?

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.

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

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.

• I don't remember every getting a large amount of cash, at most a couple hundred maybe. And we'd just spend pocket money and skip the ATM until it ran out, no need to deposit.
• Same, I can't remember needing a large amount in cash, but could be?
• I can't remember the last time I needed a cashier's check or certified. And I just got a large cashier's check that turned out to be a PITA, I should've just paid for a wire transfer instead.

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

We also have most of our cash at Ally, and a trivial amount at the local brick-n-mortar.

 

[steelyman]

After thinking about this, I’m glad to maintain accounts at two credit unions in two states. The remote one handles almost all electronic transactions very well and the local one is there in the very infrequent case when I have to show up in person (notary and medallion mainly).

The combined minimum balance required is $30 and there are no account maintenance fees. That’s worth it to me for having that fall back option.

 

[Sue J]

We pay for any local spending with cash. That's things like groceries, Walmart, Home Depot, eating out, etc. So every month I go to our brick and mortar bank and withdraw about $1400. That includes our pocket cash, too.

Our bank has a branch in our grocery store which is very convenient. They also have a stand alone branch a block farther that has a drive through but there is a $1000 limit so if I go there I have to go inside. We have used the medallion signature service and also the notary at this branch.

A side effect of using cash for local spending is that we accumulate coins. Let them pile up and every so often I roll them up and take them in to exchange for bills.

Most of our bank transactions are bill auto-pays and PayPal from buying online. We still need a B&M bank for the monthly cash. Our account has no fees and no minimum balance.

We also have a couple of savings accounts and a checking account at DiscoverBank for the higher interest.