S19 and my wife use a local credit union, and I have an account at another local bank. There aren’t any banks in our town with branches where he is headed. So I’m checking into options.
It seems like Ally Bank (or something similar, they are the only online bank I know) would make sense. I haven’t used anything like that before.
Thoughts?
Ally is a terrific online bank. However, the kids love venmo. I don’t know how often you ever enter a bank building though so that part doesn’t matter. Credit unions IME seems to live somewhere in the dark ages. IMO you and your kid should open an Ally account. You may end up ditching the CU and the other bank.
Fidelity Investments. Free checking, no minimum, any atm fees worldwide are refunded. Good thing is that as your child gets older, since Fidelity Investments offers so many services, it’s one stop shopping.
Venmo for “sharing” money with your kid. My kids never set foot in a branch anymore. They don’t use an ATM for cash-- they use a debit card to buy stuff.
My student uses online banking when he is out of town (local bank). He uses “cash back” feature at stores to get cash. He uses a credit card for emergencies (like when he had the flu and went to a walk-in medical center). We don’t send him any money.
Credit Unions have some of the best loan rates around here.
My kids have a savings account at a CU. The fact that it is harder to get money out (go in person) has advantages.
They also have a Capital One online checking account with debit card. I can move money from one to the other for them.
They don’t keep much money in the checking account.
I was concerned about this as well two yrs ago as S had an account at a local credit union and was going away to school.
Makes me wonder what will actually happen to local branches in the future. Our local BofA closed it’s drive thru (no traffic) and generally has one teller working.
I never go to a branch any more, not even an ATM machine. I could take out $100 and it would last me few months. I think I use it for tipping - hairdresser and masseuse.
I think having a Fidelity account is a great idea. I don’t have my banking with a brokerage firm because I have private banking and my kids get the same benefits. The benefits came in handy when they studied abroad. They were able to access to money without having to open a local account. I believe many of those brokerage firms offer similar benefits.
Didn’t think about Venmo for transferring cash to him if needed. It looks like there is some sort of credit union network where he may be able to access his home account via the local credit union at his college town. I may call his credit union this morning and ask about that. I do see that there is an ATM he can use easily, if he needs to.
If he has access to a no fee ATM, and can access a branch if he needs to cash a check or something like that, then I may just leave him set up where he is.
I still have a bank where I can actually go in and talk to someone with authority and the tellers greet me by name. Occassionally I have made deposits when I needed immediate access to the money, not in a few days. I can still walk over to the branch manager’s office and have him sign off on it. I’ve only done it a couple of times, but it was really nice to be able to do. Once they go more corporate, which I’m sure is coming eventually, I will probably just switch to Ally.
I love TD Bank because they have hours seven days a week and have very helpful employees.
My kids have accounts at a local bank that refunds all ATM fees, anywhere in the world. It saves my son in Beirut a ton of money, because the fee is typically $3 per transaction.
Retail bank branches are closing at the rate of about 2,000 per year in the US. They’re high overhead costs (real estate, personnel) for services that customers are finding alternate paths for. There’s very little you specifically need the bank manager for these days - the safe deposit box management, the signature guarantor on securities moves, loan origination, account opening for estates, inexpensive currency exchange. Those sound like exceptional use cases.
What would he use a bank for?
Do check up on his credit union’s shared branch situation. We moved from Maryland to North Dakota for two years, and never needed a local bank or credit union because there was a credit union with a shared branch there. I stopped in once a month or so to get coins for laundry, and cash random checks, and was treated as one of their own.
Happykid uses cash only as a last resort. She pays for everything with her debit card. I think that’s pretty standard these days. She did join her university’s credit union, but that was mostly to keep her grad stipend separate from her other accounts so that she could better track her grad school related expenses.
@happymomof1 your second paragraph answered your question. I was thinking about the random check, but also things like needing a roll of quarters, or being able to empty out a jar of change and not have to pay 10% to get it deposited or turned into bills. I probably go into my branch once a month, and it’s usually for random checks. I’m guessing he will more likely use it a couple of times a year, but it is a handy resource to have.
“If he has access to a no fee ATM, and can access a branch if he needs to cash a check or something like that, then I may just leave him set up where he is.”
No need these days to visit an ATM or branch for deposits. With their Fidelity accounts (and other places with online banking) you just take a copy of the check with your smartphone to deposit.
Re: cash, there are still places that don’t take credit cards - mom & pop food establishments and such and even more so abroad.
yeah depositing checks via smart phone is SO convenient, and I usually have access to the money within an hour or two. Much faster than if I had to arrange a visit to a bank!
It sounds to me that you aren’t really leveraging the changes in modern banking, so consider updating your own options. Many people run multiple accounts to optimize options. The CU for your home loan maybe, but not for anything else. Check? mobile deposit Quarters? (beyond my comprehension, if I get change it goes in the change pot) but really, cash back in stores and venmo will cover your kid. Have him open an Ally account so he is in this century for when he gets a job. ATMs as well as branches will soon be a thing of the past.
I have a credit union account…I don’t even know where a brick and mortar credit union is…but they have great rates on things like car loans…and mine is a no fee account.
I also have a local bank account for DH and me for our expenses. Believe it or not, there are still places that want checks…or cash. My landscaper wants a check only. No other option for payment. Again…a no fee account.
My kids have B of A accounts…really convenient for me to deposit into their accounts…and yes…I walk into the bank with a deposit slip and check…and do it. No big deal. I am not on their accounts so can’t do it at the ATM.
Re: getting cash…I get cash back when I make purchases…if I’m going to need cash…which is pretty seldom. I like to have cash for tips.
Anyone use Zelle? I’m thinking about doing that.
Capital One has checking accounts with fee-free atms (usually in CVS and that sort of atm) and a debit card. No fees at all. All online, though Capital One cafes offer banking (in addition to half price coffee with a Cap One credit card).
@doschicos thanks for the Fidelity tip on their checking - will look into it for DS.
Reasons I still need a bank branch - I am still redeeming savings bonds my late grandfather gave me - there are still several that have not matured. Also, my state requires me to file notarized affidavits every year stating that my business does not employ non-citizens, so I go to the branch for that as well. And, of course, to access my safe deposit box from time to time. Or when I need a free lollipop.
Our S has never needed to visit a branch once his accounts were set up. BoA: checking account (used as a central account, but has never written a check), debit card (can access cash on campus or use for online or in-person purchases, credit card (for larger purchases and periodic payments like streaming music fees). During internships he uses direct deposit. He has received a few checks but he uses app to take a picture for deposit (not all banks support this capability). His checking account is also linked to his Schwab accounts (brokerage and Roth) so he can easily transfer money for longer term investing. He’s building some really good saving habits.