Banking with BoA doubts?

[EEinNJ]

The financial news has been reporting a lot about the trouble Bank of America is in, from buying Countrywide, then a shotgun wedding with Merrill Lynch. They've gotten TARP funds, the stock has plummeted. There are rumors of "nationalization".

I have a MMA and CC with them, only because they bought MBNA, where the accounts were. They're convenient and the MMA pays a good rate.

But before I made a deposit yesterday, I had misgivings. I know it's FDIC insured, and BoA is "too big to fail". I'm just wondering, with the bad management and their less than ethical business practices (credit card abuses, accounts for illegal aliens) whether I shouldn't take my money elsewhere. Then again, the government has largely kept secret which other banks are getting bailouts.

Anyone else having doubts, or ideas?

[sweeps]

Based on their very poor customer service even before this debacle, you shouldn't have been banking with them. IMHO of course.

[disneysteve]

I've been with BoA since they bought out Fleet a few years ago and have had no problems at all. I'm always surprised by all the negative stuff I read about them because that totally has not been my experience. I think their online banking is excellent and the customer service I've gotten in the branches has always been top notch.

[poundwise]

I've ... had no problems at all. I'm always surprised by all the negative stuff I read about them because that totally has not been my experience. I think their online banking is excellent and the customer service I've gotten in the branches has always been top notch.

This is exactly what a friend of mine has said for years in response to my comments about BoA. That is, until last month. After sorting out a mess, he is now in the process of moving his accounts - and telling me not to tell him that I told him so.

I am of the opinion that people who bank with BoA fall into two groups - those who have had a poor experience and those who will.


Just a note: BoA ranks low (again) in J.D. Power's Retail Banking Study. They received a 2 of 5 ranking overall, which is considered below average; what J.D. Power calls "The rest." Depending on which region, they also rank 2 out of 5 for fees and accuracy/clarity, etc.


Back to the OP... I wouldn't have much concern over the safety of your deposits with BoA or any other FDIC insured bank or NCUA insured credit union.

[EEinNJ]

I can't complain about their customer service, in fact their fraud detection quickly flagged that somebody had gotten hold of my CC# and made suspicious charges. It would be an easy choice if I'd had any problems.

[Russell]

I guess I've been in the group that hasn't had a poor experience yet in two years I've been with them. I was with WaMu before that (still have the account).

Must be because my interaction with them (or any bank) is so minimal. My checks are direct deposited, I write a couple of checks and pay off my citi cards using online pay from my bank accounts. That's pretty much it for 360 days of the year unless I go in to get a cashier's check or something once or twice a year.

I find that WaMu is probably worse now that it's owned by Chase. I've heard nothing but bad things about Chase credit cards and wonder if the banks are the same way.

Citi is in it's own mess right now so who's left to do banking with? Credit unions? what are the advantages there?

[frito833]

I've been a BoA customer for 10 years now. Very happy with their online banking system like automatic bill payments, networth tracker, and ease of use. Another plus is that there's a BoA in every major city so I pull out my cash w/o ATM fees.

Only complaints are the very low interest rates for savings and if savings ever goes below $300 for the month, they hit you with a $5 maintenance fee. Also, they keep sending me the cash advance credit card checks every week which goes straight to the shredder. This might be biased because I never had to interact with BoA employees face to face or had to borrow money from them. Overall, I'm happy.

[disneysteve]

I guess I don't understand what kinds of problems people have with BoA. I have a checking account and, until recently, had a home equity loan. Not much to screw up there. Over the years, there have been a couple of transactions that weren't processed right, but all it took was a phone call or a visit to the branch to get them corrected. Mistakes happen at any bank. BoA has always been very good in correcting errors quickly and smoothly.

As for fees, there are absolutely none. I've never paid a penny to them for any service provided to me (other than closing costs on the HEL).

I do wonder what issues other people encounter that generate these negative reports.

[Investing First Steps]

I would advocate against having more than what is FDIC insured anywhere. But I would say that if BofA goes down we'll have bigger problems on our hands. And if you have less than the 250k FDIC insured amount I wouldn't worry at all, because even if BofA isn't "too big too fail" if FDIC fails...

[skylovessea]

I have a BOA account and I haven't had any problems. Then again, I don't bank often. I mostly just use it for check cashing and sometimes putting something in savings (because the closest one is 30 minutes away, so I'm not tempted to take anything out)

Anyway, granted there have been some negative stories, BOA is the largest bank in the country with the best reputation on it's side (for the most part).

There are going to be worries and customer service problems no matter where you go. As long as what you have in the account is FDIC insured, I wouldn't worry. But definitely use your best judgment!