Talk Irvine

General => Economy & Finance => Topic started by: BusyHomeowner on March 22, 2017, 05:58:10 AM

Title: Good Local Bank
Post by: BusyHomeowner on March 22, 2017, 05:58:10 AM
I'm looking for a new bank.  Any Suggestions?
Title: Re: Good Local Bank
Post by: Perspective on March 22, 2017, 08:21:49 AM
I'm looking for a new bank.  Any Suggestions?

If you're looking for much higher rates on savings/checking (1% vs 0.1%), then check out the net banks (e.g. Cap1).

https://www.capitalone.com/bank/interest-rates/
Title: Re: Good Local Bank
Post by: BusyHomeowner on March 22, 2017, 10:37:56 AM
Perspective -

Thanks for the suggestion.

It seems like many/most brick and mortar bank locations are paying absurdly low interest rates at the moment.

I dropped into a couple of bank branches earlier in the week and asked for a rate sheet.

The first bank was paying a "Relationship" rate/APY of .06% (that is not a typo) for balances of $250,000 to $10+ million. Their "Standard" rate/APY for balances of up to $999,000, however, was only .01%

The second bank had slightly higher rates.  For example, their High Rate Money Market account was paying .10% for balances of $50,000 to $1+ million.
Title: Re: Good Local Bank
Post by: eyephone on March 22, 2017, 10:41:54 AM
For me: I wouldn't settle just earning 1%.

Perspective -

Thanks for the suggestion.

It seems like many/most brick and mortar bank locations are paying absurdly low interest rates at the moment.

I dropped into a couple of bank branches earlier in the week and asked for a rate sheet.

The first bank was paying a "Relationship" rate/APY of .06% (that is not a typo) for balances of $250,000 to $10+ million. Their "Standard" rate/APY for balances of up to $999,000, however, was only .01%

The second bank had slightly higher rates.  For example, their High Rate Money Market account was paying .10% for balances of $50,000 to $1+ million.
Title: Re: Good Local Bank
Post by: USCTrojanCPA on March 22, 2017, 02:11:52 PM
What a joke...might as well buy short term treasuries.  Or I can make 1 options trade and make 1% with basically no risk.
Title: Re: Good Local Bank
Post by: Soylent Green Is People on March 22, 2017, 02:59:10 PM
If your work offers a credit union, or if a family member can sponsor you into their CU, give them a try. Schools First FCU is terrific.

Local Banks and CU's will never offer healthy competitive returns. They are service centers only, and most CU's are better in that area than banks.

My .02c

SGIP
Title: Re: Good Local Bank
Post by: Perspective on March 22, 2017, 03:13:29 PM
What a joke...might as well buy short term treasuries.  Or I can make 1 options trade and make 1% with basically no risk.

Do you hold $0 in cash at all times? Most conservative folks minimally hold 3+ months' expenses in cash. You can earn ten-times more interest on this cash in a net bank, than you will earn in a brick and mortar depository institution.
Title: Re: Good Local Bank
Post by: Soylent Green Is People on March 22, 2017, 03:42:38 PM
Only word to the wise about Net Banks is their withdrawal speed. Net Banks are very good at opening accounts, but can be very, very slow when it comes to liquidation. I've had more than a few purchase closing held up because the customers net bank withdrawal was going to take 3-5 days instead of 3-5 minutes as a traditional bank can with a wire. If you're clear with the potential delay up front, and can plan around restricted access, then a Net Bank might work well.

My .02c

SGIP
Title: Re: Good Local Bank
Post by: eyephone on March 22, 2017, 04:53:06 PM
What a joke...might as well buy short term treasuries.  Or I can make 1 options trade and make 1% with basically no risk.

Do you hold $0 in cash at all times? Most conservative folks minimally hold 3+ months' expenses in cash. You can earn ten-times more interest on this cash in a net bank, than you will earn in a brick and mortar depository institution.

Who knows! He might have a ZBA (zero balance checking account) like the smart big business.
Title: Re: Good Local Bank
Post by: BusyHomeowner on March 22, 2017, 08:23:20 PM
What a joke...might as well buy short term treasuries.  Or I can make 1 options trade and make 1% with basically no risk.

USCTrojanCPA -

I have no free time at the moment... so options would probably not be a good strategy for me.

How much of a hassle are short-term Treasuries these days?  (Hopefully, the current system is far more efficient than the Legacy system of yesteryear.)
Title: Re: Good Local Bank
Post by: BusyHomeowner on March 22, 2017, 08:27:06 PM
For me: I wouldn't settle just earning 1%.


eyephone -

Are you proposing a better strategy?
Title: Re: Good Local Bank
Post by: BusyHomeowner on March 22, 2017, 08:29:31 PM
If your work offers a credit union, or if a family member can sponsor you into their CU, give them a try. Schools First FCU is terrific.

Local Banks and CU's will never offer healthy competitive returns. They are service centers only, and most CU's are better in that area than banks.

My .02c

SGIP

Soylent Green is People -

Thanks for the suggestion.

I doubt that I’d meet the membership criteria for most credit unions, however.
Title: Re: Good Local Bank
Post by: BusyHomeowner on March 22, 2017, 08:50:02 PM
Only word to the wise about Net Banks is their withdrawal speed. Net Banks are very good at opening accounts, but can be very, very slow when it comes to liquidation. I've had more than a few purchase closing held up because the customers net bank withdrawal was going to take 3-5 days instead of 3-5 minutes as a traditional bank can with a wire. If you're clear with the potential delay up front, and can plan around restricted access, then a Net Bank might work well.

My .02c

SGIP

Soylent Green Is People -

Great points.

I suspect that in the future, however, financial institutions (including brick and mortar banks) will employ strategies that are designed to discourage customers from fleeing low interest rate accounts.  The institutions may not be able to stop customers from closing a liquid account, for example, but they can certainly make the process a ridiculously stressful, exasperating, time-consuming nightmare.
Title: Re: Good Local Bank
Post by: eyephone on March 22, 2017, 09:02:04 PM
For me: I wouldn't settle just earning 1%.


eyephone -

Are you proposing a better strategy?


I go with a big bank, for ATM connivence.
Title: Re: Good Local Bank
Post by: aquabliss on March 22, 2017, 09:26:18 PM
I think the bank on Jeffrey and Walnut is called "The Bank of Hope".  Thought it was funny.
Title: Re: Good Local Bank
Post by: USCTrojanCPA on April 04, 2017, 11:03:38 PM
What a joke...might as well buy short term treasuries.  Or I can make 1 options trade and make 1% with basically no risk.

Do you hold $0 in cash at all times? Most conservative folks minimally hold 3+ months' expenses in cash. You can earn ten-times more interest on this cash in a net bank, than you will earn in a brick and mortar depository institution.

I have as much of my money working for me as possible at all times.  I keep very little in my checking account, I maintain liquidity in my brokerage trading account.  When I need money, I'll transfer it to my checking account. 
Title: Re: Good Local Bank
Post by: USCTrojanCPA on April 04, 2017, 11:08:47 PM
What a joke...might as well buy short term treasuries.  Or I can make 1 options trade and make 1% with basically no risk.

USCTrojanCPA -

I have no free time at the moment... so options would probably not be a good strategy for me.

How much of a hassle are short-term Treasuries these days?  (Hopefully, the current system is far more efficient than the Legacy system of yesteryear.)

Most brokerages will be able to allow you to buy very short term treasuries and provide you a checkbook and/or debit card.  I trade with TDAmeritrade and they have a local Irvine branch so you should go in there and talk to someone in there.  I just ACH between my brokerage account and checking account and funds come in and out in 1 business day.  The type of trading is not for the faint of heart or wallet and you have to be approved to do it (selling naked options), it's definitely for at-risk capital only.  But as they say, no risk...no rewards.  :D
Title: Re: Good Local Bank
Post by: best_potsticker_in_town on April 04, 2017, 11:44:09 PM
I heard Banc of California is looking for customers
Title: Re: Good Local Bank
Post by: SoclosetoIrvine on April 05, 2017, 10:01:41 AM
I would stay away from Wells Fargo for basic banking due to recent scandals
I love Chase credit cards but would stay away from their regular banking as they LOVE cold calling late at night

My personal banking is at US bank which feels like a credit union in ways

I put my non investment savings in American express savings account.  I get .90 apy on a money market there.  Really good customer service.  No issues on sending out wires to escrow (no wire fee)... only downside I guess is it takes 2-3 days to transfer from American express to your linked bank account if you need the funds but keep your "buffer" funds in your regular checking and you won't have any issue. 
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