@GnocchiB One advantage to Fidelity is they do have branches in big and not so big cities so things like notarization are still possible if a branch is in your area. Some of their competitors like Vanguard don’t have the branch option.
Most big banks offer free checking to college students. National atm networks. Fraud protocols. Online aps and branches on occasion when one is needed. Like replacement debit cards. At BOA you lose a debit card and you walk out with a replacement card 30 minutes later. It happened to mE last month. Want to watch a student meltdown. Lose a debit card or cell phone.
And can also have cash deposits to atms from part time jobs etc. can’t do that with a pure online bank. No cash transactions.
I think it is better if you do banking at one place because you get more perks if you have more “asset under management.” When my father passed away I consolidated everything to one banking and one brokerage account. Now my mother gets white glove treatment. My father thought he was spreading his risk by having multiple accounts.
“National atm networks”
It’s not unusual for even small banks to offer national ATM networks. What is less common is reimbursement of fees nationwide. IMO, nobody should be paying to use an ATM in 2019 when there are financial institutions that make all of them free. If your bank or financial institution isn’t, time to shop around.
Both of my kids kept banking at our credit union throughout college. The ability to remotely deposit checks meant it didn’t matter where there was no branch near them. The credit union is part of a national network so ATM transactions were free.
Fidelity and Charles Schwab are good options.
With the money center banks you don’t have to worry about atm fees. The units are everywhere.
Another point OP.
I’d check to see who has the atms on your campus or closest branches. Like others have mentioned. You don’t need these with online banks until you need a branch.
Lost atm card.
Serious fraud.
Foreign currency.
Certified checks.
Notary or medallion guarantees. Etc.
And don’t forget depositing cash from tips or gifts. If this is a possibility . Online banks can’t help with deposits.
But all of these options and posts offer good basic advice.
My s’s use USAA. Most is online (photo deposits, refunds on ATM fees, etc) but they do all have a few freestanding ATMs.
Our sons use State Farm Banking. Very convenient online banking that has worked well so far. They also have photo deposits and refunds on ATM fees. They each also have a credit card through State Farm with a low limit for emergencies. They earn points on the credit card but neither has ever used the points for anything so not sure what you can get for them.
My kids have used the came Credit Union I’ve used for 40+ years and they have accounts at. We’ve lived in a few other states during this time and just do all our banking online. Some ATM’s take deposits so if they have checks or things they can use those, or most just take a picture on the check to deposit. Even though my daughter now lives, permanently OOS, she set up her paychecks to go to the credit union because she’s comfortable with it. She made a mistake last month and was charged a $25 fee, but she called and they reversed it. Happened one time with her taxes too (money taken out of checking and was supposed to go out of checking) and they just fixed it.
There are a few things when it is helpful to have a branch… 1) to turn in change we collect, but you can go to a CoinStar machine and get a gift card for no charge. 2) to get foreign money for travel, but you can order that online or go to a AAA office.
It is helpful to have someone (me or my mother) go to the branch to get a check to cancel and give to a new employer for direct deposit, but there are ways around that too (online print out of account number) but it is just easier to go to the branch if I need something, and the branch has cookies on Fridays!
There is a credit union in the network maybe 10 minute drive from campus, given that I’m guessing he has to go there a couple of times a year, that will be fine. Got him set up today so he can do mobile deposit of checks. And there is an ATM he can use one storefront over from a restaurant just off campus where he will probably eat weekly. He is apparently already set up on venmo, although he said he never uses it. His college friends do though, which is why he set it up. So I think he’s set up. If he runs into problems, I’ll post here just for the benefit of others who look at this down the road.
Ironically, I can’t use the credit union for its best use. The branch manager is snoopy and gossipy, and knows lots of people in my social circle. No way am I borrowing money from there even at a cheap rate and giving her access to my financial info. I might as well take out an ad in the paper and publish my tax returns. How she keeps her job I don’t know, but it certainly costs them business from my family, and others in our circle.
I think there is still a benefit of having a local bank if you have a real small town bank available, at least if you do anything out of the ordinary or are self employed. I’ve done it a bit, and I have seen my father-in-law definitely use that to his benefit. I live in a place where even though the modern corporate world has largely taken over there are still small pockets where you can do handshake business. I was in a situation years ago where I couldn’t really qualify for a mortgage even though I had the income to pay it. (self employed without 2 years tax returns) The manager (who I knew very well personally) walked me down to the mortgage lender’s office and told her to loan me what I needed and they would just hold the loan in their portfolio so she didn’t need to worry about it complying with the guidelines. If I hadn’t moved 4 hours away from their closest branch I would still bank there. I found somewhere not quite as good, but where I still usually get about halfway through my explanation before the manager will cut me off and tell someone to just give me what I want.
That’s terrible. We have let people go the exact day they looked at accounts or information for which they had no business justification. Client privacy is paramount. No laptops or folders or any information with non public client information left unattended or unlocked overnight. Desks and computers locked. Random bi monthly audits of this on all floors of our building. Caught in violation is bad bad.
Schwab has very good service for an online/phone bank. And you can use any ATM in the world without fees. You can deposit checks through the mail or using the mobile app. I have it for the worldwide convenience, but it’s not my primary bank.
Nothing beats the convenience of having a real bank within a reasonable distance. There are limits on the number or value of most online banking transactions (depends on the bank). And depositing cash… In more complex banking matters, it’s just easier talking to a teller or banker in person instead of calling and waiting on hold for 20 minutes to talk to a person.
I bank with a few different places to take advantage of different types of accounts… Different banks have different perks and services. I just use online transfers to move money around.
I’ve only used Zelle a couple of times and it was pretty convenient, not unlike Venmo or PayPal.
@geraniol 100 percent agree. Perfectly said.
I think 90%+ of people have a simple standard financial picture with simple standard needs and can use an online bank without any real problems. But I am in the 10%.
Ally pays 2.2% and no ATM fees. Fidelity is also an interesting choice with no atm fees and being able to have it at the same place as a brokerage account. Being able to use any ATM is hugely convenient. I have to drive miles to hit up a Chase ATM. Fair point about the cash deposits, but unless you are paid in cash or work for tips and need to deposit the cash, Ally or Fidelity is more flexible.
I use a credit union for my home loans but have an online account with Amex for my stash cash.
For the older kids, I opened a student account down here at a bank with a branch on or near campus. None of the banks I was willing to do business with have branches where S17 goes to school, but he got a job on campus which gives him access to the school’s CU. At first, we had a joint CC from our CU for him, but he recently became eligible for a Discover card.
I visit my CU at least every other weekend and often call to have them do transfers, etc. for me. I needed a short term loan while I was waiting for a settlement to come in. I called my CU, explained the situation and had $25K in my account that afternoon. I don’t believe that I could get that kind of service at any other banking facility.
All of my retirement accounts are at Fidelity so I won’t bank there. I want my retirement money totally separate from my day to day money.
I also don’t do online banking or Venmo. I write checks regularly - the water bills, my heating oil, property taxes (I am not escrowed and the municipality charges a fee for online checking or credit cards), co-pays, charitable contributions, COBRA payments, etc.
The problem with major banks like BofA and Wells Fargo is that they charge you so many fees. My D used to be with Wells Fargo and she was charged for not using her debit card enough one month…
My D is now with a Credit Union and loves it! Sure, they can be a bit behind the times, but they really care about the customers!
“The problem with major banks like BofA and Wells Fargo is that they charge you so many fees. My D used to be with Wells Fargo and she was charged for not using her debit card enough one month…”
IMO, nobody should be paying fees for a checking account these days when Fidelity and others offer that service free of fees. Time to shop around and you don’t need to go small to get it.
There are no fees for student checking at BOA. We have one.
Bouncing checks etc the same of course at fidelity too.
“ Bank of America Advantage SafeBalance Banking™. Students under age 24 are eligible for a waiver on the monthly maintenance fee while enrolled in a high school or in a college, university or vocational program.”
Minimum balances over 24 waive the fees too. But that’s a different discussion.
We just find their atm network and d having the ability to deposit cash to be important. Also a person to see to immediately replace lost or stolen debit card. Which wasn’t important until it happened.