Your Banks

[Leifmk]

Checking accounts aren't really a thing here anymore (I last handled a check in THE YEAR 2000 and that was one of only two since 1990 -- during 1989/1990 I used them all the time, but that was because I was living in the USA that year; before 1989 I was kind of too young to be using checks much). I guess the closest modern equivalent would be a low-interest account with an associated debit card and minimal fees or limitations on transactions. Like the one I've had since 1992 and used as my primary repository of liquid funds (these days it's mainly my pocket money account which doubles as an emergency liquid reserve).

Anyway between myself and my wife we've got accounts in three different banks (personal accounts, joint regular-expenses and savings accounts, joint groceries and misc. purchases account) plus a house mortgage with a non-bank (the Norwegian Civil Service Pension Fund, which offers significantly below-market-rate mortgages to members) as well as student loans (again with a non-bank, these are government-backed and have special protections such as simply evaporating in case of death or disability, or they can be automatically suspended for the duration if you're unemployed for a while; thus, they are the last loans a prudent person would pay off). Also various credit cards which we use for online purchases or major unscheduled expenses (car repair bills etc) but always pay off in full each month. I guess we're kind of boring that way.

 

[rugbyLEAGUEfan]

I just assumed Americans don't use the term "chequeing account" to describe one that actually issues old school cheques (or at least doesn't have to by definition)

Maybe someone could clarify?

 

[Arctic Daishi]

I have a checking and savings account with a local credit union. I would like to have a second bank account somewhere else and am currently torn between another credit union and a national bank. I don't have enough money to realistically invest in any stocks or bonds.

 

[bhsup]

I just assumed Americans don't use the term "chequeing account" to describe one that actually issues old school cheques (or at least doesn't have to by definition)

Maybe someone could clarify?

Well, we call them "checking accounts" instead of chequeing accounts ( ), but yeah we still have them. I use my debit card linked to my checking account quite frequently, but I still write several checks per month as well.

Here is my checking account type. I used to have no fee because my mortgage was also with Bank of America so that was waived, but back in December or so they sold a crapload of their mortgages to Nationsomething Mortgage. They've yet to implement my monthly fee, so I've not changed anything yet, but the first time I see it on my statement, I'll switch types or even just switch banks. Kind of hate to do that, though. Regardless of any bad press, BofA has always been awesome to me.

Here are some I've written in the last couple of weeks:

My veterinarian for services provided to my pet.
Liberty Utilities for my natural gas bill.
City of Butler for my electricity, water, trash, sewer.
Pizza Hut when I had pizza delivered.
A general contractor who replaced some lap siding for me.

Lordy lordy though, let's not get into the difference between debit and credit cards here and how they are different in the US, Canada, and UK... or the differences between what checking accounts are. Mind boggling to say the least (especially those bizarro UK checking accounts where you apparently are entitled to overdraw your account...)

 

[EvenStranger]

I just buy Bitcoins, brah.

 

[Grendeldef]

Here are some I've written in the last couple of weeks:

My veterinarian for services provided to my pet.
Liberty Utilities for my natural gas bill.
City of Butler for my electricity, water, trash, sewer.
Pizza Hut when I had pizza delivered.
A general contractor who replaced some lap siding for me.

Oh, the wonderful diversity of worlds we live in

I've never written a cheque and last one I've seen was around mid 80s - my parents used (rarely) cheques up to mid/late 70s but in general those became obsolete around turn of the 80s.
I only need one account (accounts for long term investments excluded) - salary comes in, monthly payments like mortgage goes out, credit cards are linked to that account, instant payments are made from that as well as occasional cash withdrawals - a Swiss Army Account so to speak. To a degree this applies to Finns in general.

And if I use Mr Agent's list a reference how I'd pay those.

Vet. Card (instant money transfer, not credit) or I'd get a bill to be payed later which I'd do online in convenient time.
For electricity etc. Automatic withdrawal from my account, neat & simple.
Pizza. Online while ordering or with card when it's delivered. Or in my case cash/card +/- 48hrs of the delivery depending on how busy or lazy I am - the wonders of long term customer benefits with the pizzeria I exclusively use.
Contractor. I'd get a bill to be payed later which, boringly, I'd do online on a later date - somewhere between 0-14 days.

 

[luiz]

One private bank, one public national bank (for my retirement account), and one investment bank (a good friend of mine is one of the owners there, so I do have my personal investment banker, which rocks).

 

[Silurian]

What’s bizarre about having an overdraft facility on your current account?
My cheque use is down to about 10 a year now.

 

[JollyRoger]

In honor of Donald Trump, I recently bounced a Czech.

 

[say1988]

TD Bank is among the largest banks in Canada. I have a checking and savings account with them.

Same here, simply because the TD bank was right next to my high school. I previously used a local credit union, but I ended that when planning to move to University as there would not have been a local branch.

Also, if anyone reading is savvy about banks, can you answer...
- how do banks afford supporting free checking accounts? Are they just the lure used to attract people to one bank, in the hopes that they'll open up savings accounts or credit lines that do generate profit for the institution?
- what sources are there for finding out how reputable a given bank is?
- how can someone learn about how banks operate? Is there a Banking for Dummies type book out there? (There is, by that title, but I'd prefer something with a more conventional title. )

For chequing accounts, there are a number of revenue streams:
- Many change monthly fees if you don't meet certain requirements (such as a minimum balance or other accounts at the institution, as they facilitate other revenue streams.
- Some charge transaction fees.
- NFS, overdraft, etc fees can add up.
- Most are linked to debit cards, and the bank gets a fee for each transaction using it.
- They invest the money lying around in various chequing accounts to earn money. This can be significant for people like you who leave significant balances in a chequing account as they generally pay basically zero interest. This is also why the banks often waive monthly fees if you maintain a certain minimum balance
But after that, the idea that the chequing account draws you in, gets you to set up various other accounts and get a credit card is very important (and, as such, some banks will waive chequing account fees if you have other accounts). In my experience people tend to consolidate most of their accounts in one or two institutions so offering chequing accounts is essential for most banks.

As for what banks are good to use. From a finance point of view, any institution insured by the FDIC or NCUA (don't forget about credit unions as options) should be secure and you can look for which institution has the best interest and fee structure. On the service and CSR side, talk to people, run some Google searches and don't be afraid to close out your accounts if you have issues.

Just looking at wiki will probably give you a basic idea of how banks operate.

That just sits there and hasn't been touched in years except for some larger withdrawals for a building project. Bank interest is pretty crappy but I used to be a pretty bad gambler so I'm in no position to allow myself to invest in the stock market etc. But it's a decent enough rate and principal that compound interest, well it seems this way to me, appears to kick in nicely.

I would suggest looking into mutual funds, other managed investment funds or locked in investments. You can select low risk ones and remove day to day decisions while having a good opportunity to earn a better return. These may not be for you, but just a suggestion.

Checking accounts aren't really a thing here anymore

"Chequing Account" basically refers to any account with little in the way of restrictions on transactions. Whether you use cheques, cards, electronic transfers etc it will still be called a chequing account in North America.

In contrast, savings accounts usually have significant penalties on withdrawals over a certain limit.

 

[Quintillus]

I have two checking accounts and a savings account. Of the former, one is with a national bank, and the other with a local one near where I attended college. The savings is with a local bank that actually is local to where I live.

The local savings one is the least likely to do something stupid and need to be bailed out, and pays the highest interest on savings, but has the worst hours. The local checking one (that's 500 miles away) charges the least for international transactions, but it takes forever to get through to them on the phone (though their in-person service is fine). The national one has the most branches and also has the best combination of hours and phone support availability. So they all have something to offer. I signed up with them mainly due to convenience at the time I signed up.

I also have a car loan that's with yet another bank. It offered the lowest interest when I applied for the loan. Though I may refinance that, as I have a lot more credit history now and could probably get significantly lower interest rates.

I don't purchase stocks as I don't have that much money. I go with the philosophy of pay off loans first.

----

I hadn't realized checks were so obsolete in Europe. They're becoming less common in the U.S., but AFAIK most people here still have at least one account from which they can write checks. There are some things that still require a check, often rent payment. They might also be used for very large purchases - ex. a down payment on a house or a car. And there are a few business that don't accept debit/credit, but do accept checks - such as farms in the middle of nowhere.

The only expense I regularly use checks for these days is my car payment - there are about three options to use to pay it online, but only one doesn't charge a fee, and they couldn't explain it well enough for me to be confident that I wouldn't be charged a fee, so I just send a check.

My parents still sometimes write checks at the grocery store and other such businesses, but that's old-school to people of my generation. I'd pay for similar purchases with debit, credit, or cash. Though if my choices were between writing a check and being billed later, and I had my check book handy, I'd rather write a check. That way it's impossible to forget to pay the bill.

I also find it interesting that student loans are the last ones you'd pay off in Norway. In the U.S., they're often the first ones you want to pay off, as they're almost impossible to get rid of, even due to bankruptcy. It'd still be preferable to pay off high-interest credit card debt before them, but if you have, say, a car loan, a house loan, and a student loan, there's a fair chance the student loan has the highest interest, and in the worst case with the other two, you may be able to get rid of them by declaring bankruptcy.

I just assumed Americans don't use the term "chequeing account" to describe one that actually issues old school cheques (or at least doesn't have to by definition)

Maybe someone could clarify?

From what I've seen as a U.S. citizen, the "checking account" is generally your basic account, that typically offer zero interest but low or no fees if you don't go below zero balance, and a high degree of flexibility. They nearly always offer checks as well, though you don't have to accept them if you don't use them, since you could always use the debit card, ATM, or in-person withdrawals instead.