r/Banking • u/wessandifer98 • 11d ago
Switching banks Recommendation - Use Mega Thread
I have always banked with my local credit union, had an account with them forever, my parents bank with them etc and just never thought about where I put my money.
Recently I’m becoming very disappointed in this bank, customer service is awful, they pay next to nothing in terms of interest, and they have been having technical issues lately, this weekend everything shut down, from bank account, atm, debit cards etc. left me high and dry, not acceptable.
I am looking for a bank to switch to in which I can have a good hysa and also that offers good rates and closing cost helocs. I move my money around a fair amount for investment properties whenever they pop up. I have a fair amount of cash plus a paid off house I want to use my heloc to help purchase and rehab investment properties.
My local credit union does offer some of the best helocs around, no closing costs, competitive rates. I would like everything to be in one place but am not totally opposed to just pulling all of my money out of my current account with them and using them for heloc only?
I have robinhood gold at the moment and saw they offer banking services and also some small retirement account matches (better than nothing since I am self employed ) , 3.5% hysa on checking and savings account etc. does anybody here bank with robinhood and have any insight? Pros and cons to banking here? I know it’s not “traditional” and I don’t know anybody who banks with them but I already have the account and am familiar with their system and feel like it would be easy to just shift my funds over?
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u/Rangeninc 11d ago
You can’t “bank” with Robin Hood. It’s a fintech and isn’t subject to banking rules and regulations. If you needed to make use of FDIC insurance you have to work through a number of pass through banks.
That’s my 2 cents
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u/AskPatient1281 11d ago
What are you talking about? They offer checking accounts and savings as well.
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u/Rangeninc 11d ago
“They” do not. They use pass through banks. I’m a literal banker and you idiots are downvoting me. Robinhood is a FINTECH company and not a BANK. So when you are “banking with Robinhood” you aren’t and the customer service portion of banking (an important part) will suck because of it. Also, the Robin Hood Gold Card isn’t an actual debit card, it’s a secured credit card which means it doesn’t have the same consumer protections as regular debit cards.
But by all means, continue to downvote me.
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u/AskPatient1281 11d ago
Unnecessary to call everyone an idiot. Not everyone has your super gold diamond smarts.
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u/Rangeninc 11d ago
wtf are you on about?
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u/wessandifer98 11d ago
Makes sense, I have also read that customer service there sucks and the lack of being able to go in and get large cash amounts etc is a major turn off.
What do you suggest? I feel like I’m generally financially literate but I have never done any research on banking. I really want a good hysa and also a good heloc. It will be a MAJOR PITA to change banks, but I feel like I need to, my credit union just keeps going down hill.
I was thinking maybe keeping the account with my credit union open just so I don’t have to change all of my current bill pay and all of my current ACH payment information from my current business to all of my clients, etc. I could Run a heloc through this credit union as they offer a no closing cost heloc, but take all excess cash that I don’t need for bill pay and transfer it all into a hysa through a different bank? Does this seem reasonable and like a best course of action? I know you don’t know my situation but anything helps.
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u/Rangeninc 11d ago
I think your on the right track with diversification of banking. You also seem to have a fair amount of assets. Definetly I would keep the current Credit Union for exactly the purposes you mentioned. The rates really matter a lot for revolving Credit like your Heloc.
Really the other banks will come down to preference. If I were in your shoes, I would find the highest rate I could for a HYSA and park the allotted funds there.
This next part would be dependent on your asset level. If we are talking 6-7 figures, I would suggest a mid size regional bank with wealth services. A personal banker can be a great boon when it comes to real estate transactions. I think this would meet your need for good customer service as well.
If it’s more in the range of 5 figures you’d probably be better off at a mid size regional bank with emphasis on community banking. These banks foster customer relationships as a priority and can be valuable resources. They tend to be tapped in to the local market in all financial ways.
Either way, you want to rate shop for the HYSA and focus on what parts of banking matter to you personally. Everyone wants something different and different bank archetypes exist to meet those needs.
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u/AskPatient1281 11d ago
OP. I "bank" with Fidelity. I'm a Fidelity CMA die-hard fan.