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Chase vs. Bank of America


Written by Lauren Perez | Published on 1/29/2019

If you want to bank with a big and reputable name, both Chase and Bank of America are solid options. JPMorgan Chase has been in business for more than 200 years, with branches in 29 U.S. states and D.C. as well as international locations. Similarly, Bank of America’s history reaches back 240 years, and today you can find Bank of America locations in 37 states and D.C.

These two juggernauts each offer similar menus of account options, which may make it difficult to decide which bank is the better bet. After reviewing both bank’s offerings, we can safely say that perhaps neither is the best option, given their low rates on accounts like savings and CDs and their tendency to charge fees for accounts with low balances, unless banking with a recognizable name with physical branch locations is your top priority.

Chase vs. Bank of America: Which offers better rates?

Looking at rates on basic products like savings, checking and CDs, neither Chase nor Bank of America offer competitive interest rates on its standard accounts compared to the national average and far below what online banks offer. Still, it looks like Bank of America offers the better deals.

Bank AccountChaseBank of AmericaNational averageOnline bank average
Savings0.01% APY0.03% APY0.262% APY1.52% APY
Checking0.01% APY0.01 - 0.02% APY0.189% APY0.41% APY
1-year CD0.01% APY0.05% APY1.268% APY2.09% APY
5-year CD0.50% APY1.00% APY2.206% APY2.70% APY

These rates are accurate as of 1/21/2019

Bank of America comes out ahead in this matchup, but it’s worth noting that Chase does offer some opportunities for slight rate boosts. You can earn relationship rates on your Chase Premier Savings account if you link the account to a qualifying checking account and make at least five customer-initiated transactions each month with your linked checking account. So instead of earning at a 0.01% APY, you can earn between 0.04% and 0.11% APY, depending on your balance. You can also snag slightly higher relationship rates by linking a qualifying Chase checking account on a Chase CD.

Bank of America’s Rewards Savings account earns higher rates for Preferred Rewards customers. Depending on your level of enrollment (based on your qualifying combined Bank of America and/or Merrill Edge/Merrill Lynch balances), this can boost your standard rate to between 0.04% and 0.06% APY. The bank also offers a few Featured CD accounts which earn at slightly better rates than the standard.

Chase vs. Bank of America: Account options

Chase account options

Hands down, Chase offers more bank account options than Bank of America. At Chase, you can find two savings accounts and three personal checking accounts. The Chase Premier Savings and Chase Sapphire Checking accounts both require an opening deposit of at least $100, while the others only require at least $25. The bank also offers two student checking accounts, one for high school students and one for college students, where the main benefit is lower monthly fees. Chase doesn’t offer a money market account.

As for CDs, Chase offers a wide range of CD terms from one month to 120 months. There are also a number of Featured Terms, ranging from nine to 41 months. Each CD requires a minimum deposit of at least $1,000 to open. Although it was once an option, you can’t open a new Chase CD as an IRA anymore.

In addition to personal deposit accounts, Chase also offer auto loans, mortgages and home equity lines of credit, investment accounts and commercial banking.

Bank of America account options

In contrast to Chase’s deposit accounts spread, Bank of America offers only one main savings account, the Rewards Savings Account, although it earns at a higher standard rate than the savings accounts offered by Chase. You’ll need at least $100 to open the account. There are also a Minor Savings Account (designed for joint ownership between a minor and parent/guardian) and a Custodial (UTMA) Savings Account.

The bank technically offers one checking account, Bank of America Advantage Banking, but it comes in three different “settings” so you can choose your most ideal account based on your preferences. The first account, focused on no overdraft fees, requires a minimum opening deposit of at least $25. The two remaining settings require an opening deposit of at least $100 and include more features and the ability to earn interest on your balance.

Similar to Chase, Bank of America CDs range from 28 days to 120 months and require an opening deposit of at least $1,000. There are a few Featured CDs available that require at least $10,000 to open. Unlike Chase, however, Bank of America does allow you to open its CDs as IRAs. This includes Featured CD IRAs which require a lessened minimum opening deposit of $2,000. There is also a Money Market IRA option which requires at least $100 to open.

Other Bank of America offerings include auto loans, mortgages and home equity lines of credit, investment accounts (which are handled through Merrill Edge) and commercial banking.

Chase vs. Bank of America: Fees

ChaseBank of America
Standard savings account$5$8
Standard checking account$12$4.95
Non-bank ATM withdrawal fee$2.50 each within the U.S.
$5 each outside the U.S.
Waived for Chase Sapphire Checking
$2.50 each within the U.S.
$5 each outside the U.S.
ATM refund?With Chase Sapphire CheckingWith Preferred Rewards Platinum or Platinum Honors
Overdraft fee$34$35, waived with Advantage SafeBalance Banking
Paper statement copy fee$6 per copy$5 per copy

As is typical with brick-and-mortar banks, the more perks your account has, the higher the monthly fee will be. Chase and Bank of America are no different. For example, the Chase Savings account charges a $5 monthly fee while the Chase Premier Savings account, with relationship rates opportunities, charges a $25 monthly fee. The same is true for Bank of America’s Advantage Banking accounts, where the fees range from $4.95 to $25. The most expensive account setting, Advantage Relationship, earns interest on all balances.

Both banks do often give you the chance to waive monthly fees on all savings and checking accounts. You can typically do this by maintaining a minimum balance, linking accounts together or by making a certain number of transactions each month.

Of course, monthly account fees aren’t the only fees that banks charge, especially big banks like Chase and Bank of America. Check out some of the common fees you can run into.

Who should bank with Chase?

Chase offers its customers with a wider variety of account options, giving you more choices when looking for the right account. You’ll have your pick of three different checking accounts, each varying in fees and perks. The bank also allows you to pick your own CD term length (from one to 120 months), unlike most online banks which typically offer a limited number of options like nine different terms ranging from three to 60 months.

Because of its wide account offerings, Chase is a good option if you want to keep all your accounts with the same bank. That way, you don’t have to bounce from bank to bank to manage your money.

Since you’re looking for a brick-and-mortar bank, it’s important to note that Chase is largely absent from Midwestern and Southern U.S. states. If you don’t live in a state with Chase branches, it may not be worthwhile to open an account. You also shouldn’t bank with Chase if you’re looking for high interest rates. With its established reputation and thousands of branches to maintain, Chase does not offer competitve savings through its deposit accounts.

Who should bank with Bank of America

With locations in 37 states and D.C., mostly missing in the Western/Midwestern region of the country, Bank of America offers more widespread physical access to your money. This is helpful if you travel the country often, for example, and want a better chance of finding a branch. You can easily find the nearest branch or ATM online or on your Bank of America mobile app.

Bank of America has expanded its mobile features to include a virtual financial assistant called Erica. You can instruct Erica, through voice commands or text, to make transactions like transfers or take certain actions like locking a debit card. The feature also alerts you to periodic charges, provides routing numbers, schedules payments and more. So if you’re looking for added convenience in managing your bank accounts, Bank of America could be the solution.

Similar to the situation with Chase, you shouldn’t turn to Bank of America if you’re looking for the highest deposit account rates. If you need to choose between these two big banks, however, Bank of America offers marginally better rates on its accounts.

Related Pages: nationwide deals
Comments
john
john   |     |   Comment #1
the word is simply RIP OFF,no int and fees and massive profits,they should be ashamed of themselves, there are hundreds of banks that pay 2 % mm and 3 % on1 yr CD plus internet banks , WHY DO PEOPLE BANK AT THESE CROOKS
Kojak
Kojak   |     |   Comment #25
And Wells Fargo. Several scandals come to mind. Multiple-millions paid out in fines.
joe
joe   |     |   Comment #2
Big? I will grant you that. Reputable? Not so much...
buckeye61
buckeye61   |     |   Comment #3
Since the crash of 2008 these two Banks have become useless for anything other then checking accounts, and then only if you can easily satisfy the requirements to avoid their monthly fees, there are much better options out there. Having said that, I have had accounts at both to take advantage of some attractive new account bonuses.
deplorable 1
deplorable 1   |     |   Comment #4
I only have a checking account with Bank of America because they bought out my old bank where I had free checking with no DD requirement and a $0 minimum balance requirement. Now I have to have direct deposit or keep $1,500 in a checking account that pays 0%. They do have a large ATM network and the best 0% no fee balance transfer for a credit card though. Chase isn't any better and has the same checking account requirements. Chase vs. BoA is kind of like arsenic vs. cyanide pick your poison. We all need a local account for check cashing/ ATM access/making cash deposits etc. so a large bank with many branches is a must and these guys are the largest.
DOA
DOA   |     |   Comment #5
Good honest article though. May I add to the tiitle though:
Chase vs Bank Of America ... And Why You Do Not Want To Use Them
QED
QED   |     |   Comment #11
Your post gave me a smile and I surely do agree with you up to a point. Most of Ken's readers are wise enough not to use the large money center banks for their banking needs, checking, savings, CDs, and so forth. However, I do a lot of credit card business with the large banks and have scant few complaints. They treat my credit card business with respect, generally speaking. Of course the exception is those banks with offshore (i.e., foreign) call centers. They are not respectful of their customers in that one regard. But in the realm of credit cards I seldom have to telephone the bank.

Just sort of thinking out loud, I could not IMAGINE doing banking (as opposed to credit card) business with a financial institution having foreigners at the other end of the line when I call in. Why would any American choose that option when there are so many financial institutions offering fellow Americans at the other end of the line when you need help?
Judy
Judy   |     |   Comment #26
Excellent comments.
deplorable 1
deplorable 1   |     |   Comment #6
Speaking of Bank of America they just updated their cash rewards credit card with 3% cash back on categories you get to choose. It is similar to the Huntington voice card except you get to choose a category monthly rather than quarterly. The most notable one is the "online purchases" category. You get a extra 10% if you have a BoA checking or savings and deposit your rewards there so this would be 3.3%. I was wondering if CD's would count as online purchases. DoC has all the info here:https://www.doctorofcredit.com/bank-of-america-cash-rewards-card-now-lets-you-choose-your-3-category/
QED
QED   |     |   Comment #8
Nice feature but sadly limited to $2500/quarter.
deplorable 1
deplorable 1   |     |   Comment #12
Yeah that's the downside it's $5,000 for me as the wife has one also. You get 2%(2.2% with checking/savings) on Costco and Sams club with the card as well which is a nice bonus. Plus a $150 signup bonus for new customers.
https://www.creditcards.com/credit-card-news/bank-of-america-cash-rewards-bonus.php
QED
QED   |     |   Comment #7
Persons with privacy concerns should think twice about banking with any of the large money center banks, and with larger banks in general. If you doubt me, and this is the internet so I assume you DO doubt me, simply request a copy of your ChexSystems report. There is no charge to obtain a copy of your report. Study the report and your doubts will diminish while your privacy concerns will become manifest.

I have already done this, obviously. I was so surprised to discover the difference in ChexSystems reporting by large banks as contrasted with smaller banks and credit unions. Fortunately for me I conduct most of my banking business with the smaller institutions. The sort of data dump, to ChexSystems, done by banks such as Chase and BoA . . . and others . . . . leaves me feeling queasy.
deplorable 1
deplorable 1   |     |   Comment #10
I hate to break it to you QED but we all gave our privacy away as soon as we opened our first savings account, credit card or email account. A FICO score is a breach of privacy as far as I'm concerned but what choice do we have? We either play by their rules or stay completely off the grid which to me is not even a reasonable consideration. I don't even bother to read those privacy disclosures anymore because they are going to do whatever they want with your info anyway and if you don't consent they take your account away. Sadly our privacy is a casualty of modern life.
QED
QED   |     |   Comment #13
Just have a look at your ChexSystems report . . . if you are banking with the large banks. The level of private information disclosure DWARFS anything the credit reporting agencies are able to make available.

In addition, ChexSystems is a separate, ADDITIONAL, channel for potential privacy breaches. You appear to have missed the point of my post, to wit:

The way to avoid detailed data dumps of your financial data to ChexSystems is to avoid the large, money center, banks. Emphasis there is on the word "detailed" and, yes, that means FAR more detailed than anything you will ever find on any credit report.
deplorable 1
deplorable 1   |     |   Comment #14
Interesting I have to admit I have never even seen a Chex report and have no idea what is on there. Where do you go to request one? Also what about credit cards I have multiple credit cards with all the big banks so don't they all have my info anyway whether I have a checking account with them or not?
QED
QED   |     |   Comment #16
d1

Do not sweat your credit cards with the big banks. You will be fine with those. It's your bank accounts, savings, checking, CDs, and so forth that are the concern. And, again, only with the larger banks.

Insofar as obtaining your ChexSystems report, Google is your friend. And remember, the report is free. You are a knowledgeable investor so am a tad bit surprised you've never requested a ChexSystems report prior.
deplorable 1
deplorable 1   |     |   Comment #18
@QED: I have never been turned down while opening a account nor have I had any bounced checks or other banking activity that would be a negative on ChexSystems so I never bothered looking at it. I guess it couldn't hurt to take a peek though just to see what's on there. I do open a massive amount of accounts for bank bonuses and rate chasing so there may be something I'm unaware of in there.
Chex Sys
Chex Sys   |     |   Comment #17
QED #13
I have not seen a ChexSystems report before, so can you expand on what kind of intrusive extra private info. they report there? Is it more than your name, address, etc. along with bounced checks fees?
QED
QED   |     |   Comment #32
to #17:

Sure. OK, let's see. First let me reiterate that I do not, for the most part, do business with the big money center banks . . . outside of credit card business, of course. So, please understand, I cannot respond to your inquiry based upon a large sample base. Regardless, from what I am seeing with just one larger bank, ChexSystems has all my bank account (that's bank account, not CC account) numbers, to include all my CD account numbers together with savings and checking account numbers, they have the date of the last time status of each account changed, along with present status, they have the date the account was opened, they have my driver's license number, and they even have the email address I shared with the bank but NEVER intended for the bank to release to a third party!! All that together with the more routine and anticipated stuff like bank's routing number, my address for each account, my DOB, my telephone number, my ID# (whatever that is), and I could be missing some stuff.

To be candid, it would shorter and easier to list what they do NOT have. I think ChexSystems has about all the information I gave this bank. And it is WAY more information than I want them to have.

After all that I need to repeat myself in order to emphasize a key point. Not all banks share with ChexSystems like the big banks share. Most, the overwhelming majority, of the financial institutions where I do business have shared NOTHING with ChexSystems. And that is how I like things to be. There was the one bank that shared, as reported above. But for me that one bank was the exception, thank goodness.
Chex Sys
Chex Sys   |     |   Comment #60
#32
That sounds like everything except for dollar$ amounts, wow!
Tekka
Tekka   |     |   Comment #9
Is this some kind of advertisement pretending to be an article. It doesn't sound at all like the usual content on this site.
Adam
Adam   |     |   Comment #36
This is almost certainly a Google keyword trap. Random Joe searches for "Chase vs BofA," comes to this page, then sees all the higher deposit rates advertised on this site.
Scott
Scott   |     |   Comment #46
Yes, it seems almost every "financial advice" site such as nerdwallet has a version of this article chase vs bank of america linked from google if you search for it, but most of those cycled around November.
Jennifer
Jennifer   |     |   Comment #15
I can't imagine that readers of this blog would be inclined to bank with either institution.
deplorable 1
deplorable 1   |     |   Comment #19
Why not? Big banks are awful for savings and CDs agreed but for a fee free checking and rewards credit cards they are fine. With many branches for free ATM access/deposits/check cashing etc. the big banks can't be beat.
Lrdx
Lrdx   |     |   Comment #59
The Shared Branching and CO-OP networks, what almost all credit unions are part of, rivals, if not beats, in terms of branches and ATMs, all the biggest banks.
jim
jim   |     |   Comment #20
i think the average person ought to used banks and credit unions that pay good rates. you can find those on this site. i see no reason to bank where employees and rules seem to get in the way of good customer service. businesses on the other hand, may need a lot of services from major banks. i have had checking at wells fargo for 20 years never opened savings or cd accounts because they never pay high interest rates. the only reason i use wells fargo is that they bought out the bank i was using. There are several credit unions and a few banks that offer very competitive savings rates online with nice customer service. i love this site because all the banks and credit unions i use, i found on this site.
111
111   |     |   Comment #21
Jim - you said "I have had checking at wells fargo for 20 years never opened savings or cd accounts because ...". Here is where I thought you were going to say, "because they always opened them for me anyway, even when I didn't ask, so why bother!"

Sorry - couldn't resist.
deplorable 1
deplorable 1   |     |   Comment #40
Nice one 111! These are the jokes folks, don't forget to tip your waitress.
111
111   |     |   Comment #22
Years ago I used to open Chase checking and savings accounts basically every year - open, perform the required transactions, wait for the bonus, then close, and rinse-and-repeat the following year. There are a few Chase locations local to me, so I alternated each year. Then a couple years ago Chase put stricter limitations on this, so I actually kept the account open this time. Lo and behold, it actually has some advantages - free local notary and (important when you need it) medallion guarantee service, etc. Who knew!
deplorable 1
deplorable 1   |     |   Comment #41
Yes the gold medallion signature guarantee stamp. It seems that Chase is one of the few banks that actually does this. I have needed it multiple times to make changes to corporate debt accounts. All you need it a active Chase credit card I believe but the last time i needed it I had the checking and savings bonus going on.
Mark
Mark   |     |   Comment #23
First, they would not exist today if it was not for the bail out in 2008/09 from the taxpayers and the FED's free TARP money.
Each one of them banked closed to a trillion dollars for free and used those money to invest in the stock markets around the globe.
They are ripping billions upon billions of those investments each year and could care less for the US consumers. They lend money very rare to anybody, but issue IPOs for huge profit of 10-20% upfront. They have capital to run forever and do not want to pay any interest nor give purchase money to consumers. Speaking of selfish and evil entities, you are looking at them.
Judy
Judy   |     |   Comment #28
Right on! And now, Too Big To Fail.
Berry
Berry   |     |   Comment #31
Judi, do not forget, Obama gave them new confiscatory right, BAIL-IN. Should ever any big bank gets in trouble again, they can confiscate any deposit, foreclose on any mortgage or loan and take over anything they have lent money to. They borrow money from the FED and resale the same money again for profit to the treasury and collect interest, endless supply of free money to the big banks. Consumers, what consumers, they create just a headache for poultry loans and ledger entries that makes them not profitable.
bankingar
bankingar   |     |   Comment #24
Wow where to begin except by saying this is one of the only sites where I both read and love the comments.

I hope most DA readers are as savvy as you folk and read this for informational purposes only. tl;dr: larger B&M banks (ESPECIALLY Chase and BoA) are customer unfriendly and terrible options (with a few super specific caveats) given the online playing field.

As others have said, you don't need to worry about getting a credit card with these giants. That's a license for them to siphon money from merchants and not you so it's reasonably safe. Is it bad for the collective good? Some would say yes if you've read about swipe fees, how just bonkers they are, and how it increases the costs for everyone but I feel this is definitely an area where one person cannot make a difference.

Back to banking though. I had an account with Chase from a bank they bought. Long story short there was little reason to use the account so I got a notice saying the account was going to be closed with the money going to "the State" and it would be a huge hassle to recover it if I didn't close the account myself. Welp as you can imagine, unlike the vast majority of banks, you can only close an account in person. Luckily I was taking a trip a few states away where there would be a Chase branch but this is predatory considering the size of the institution.

BoA offers more if you have a "relationship" with them but it's very codependent (i.e. they need you to enable them to take money from you for a vast variety of reasons). If you're already in bed and having a hard time getting out, i.e. you have their awful fee filled Merrill brokerage (srsly, any other brokerage is better, throw a dart), it might be worth it as you can get their garbage checking/savings accounts without fees (provided you have a certain balance).

I'm sure plenty of DA readers have or have had an account with these two financial vampires but I'd be surprised if they rated them highly and/or did most of their banking with them. If you're out there, enlighten us.
GO ELSEWHERE
GO ELSEWHERE   |     |   Comment #27
FLIM vs FLAM
RIP vs OFF
GO vs ELSEWHERE
Enough said.
Both are not good
Both are not good   |     |   Comment #29
I would not use either of these two banks come on seriously
51hh
51hh   |     |   Comment #33
Good article on effort.

I think that I am in the minority here to bank at BofA (agreed that Chase are a bunch of robbers, but I have their 3% for every purchase freedom Unlimited card for a year). Well, I am even a platinum honor member. Main reasons: (1) extremely low APY (Prime - 1.01%) HELOC with frequent promotional rate (the recent one is 0.99% for six months), (2) and two of my Cash Rewards credit cards earned 5.25% cash rewards (that I choose dining for this months), and (3) I am treated well, too.:D

Of course, I have other banks/credit unions for high-rate savings as well.
 
Taking the best attributes of each, so to speak.
Berry
Berry   |     |   Comment #34
You forgot one thing, your privacy, Chase reports all of your activities to IRS and other government departments and also re-sales your buying habits and likes to third party for extra profit. They also collect the money from the merchants who agree to pay double than usual charges for bringing customers to them. In fact, the money you receive as bonus are your money paid for the goods and services they charged you, instead of receiving the discount directly from them.
DCGuy
DCGuy   |     |   Comment #50
That also applies to many other merchant companies besides banks.. They share your information with other companies. The internet is one gigantic Ponzi scheme. It's been commercialized like Xmas.
Robert
Robert   |     |   Comment #58
#50, I recently received a new Chase platinum card and in the disclosure it says that they explicitly sell your buying habits to third parties and to the authorities. No other credit card disclosure says that, only that they share the info with the affiliate companies. Chase is different.
DCGuy
DCGuy   |     |   Comment #65
This might be related to the Form 1099-K that was recently created. The spending and buying habits of people and companies need to be monitored to figure out if the form needs to be filed. There are plenty of online business transactions that pass through banks. Some business operators may not file when they are supposed to.
deplorable 1
deplorable 1   |     |   Comment #51
Not sure if the platinum honors hoops justify the rewards for me as my brokerage has much lower fees. I do like the 10% bonus on all credit card rewards at BoA though.
51hh
51hh   |     |   Comment #54
It is worthwhile in my case, I did not use brokerage account for qualifications. To each his/her own.

I did not forget about privacy.  Do not care much even if I loses some privacy, anything you do nowadays, you may lose that part anyway (knowingly or unknowingly), no difference.  To me, it does not bother me at all.  Neither are the  huge crowd that are enjoying their highly-rewarding credit cards (not a commercial! :D).  


Not sure I understand the argument about goods and services, I need to buy those at the same price anyway, why not getting some cash reward to go with the purchase?  Unless the merchants refuse the use of credit cards or have different price for credit card users and chas users, it shouldn't matter.  Having discount or not always applies to all customers, not singly to credit card users (gasoline may be the only exception).  For those cases, simply go to another merchant.  The argument of not using reward credit card seems a bit weak.

I am earning thousands of dollars in extra cash rewards monthly for things I have to purchase anyway and I am happy with that.  Nothing else matters to me ( I am Rhett:D).  

Some may be fearful of losing privacy and have a logic not to get any cash rewards via credit card.  I respect that, too.  :-)
BankerAnon
BankerAnon   |     |   Comment #37
Welle Fargo is superior to both of these. Great company, highest savings rated guaranteed for 12 months from a national bank, and top draw branch network.
Michael
Michael   |     |   Comment #42
For checking accounts:
Avoid the $10 monthly service fee with one of the following each fee period:
10 or more posted debit card purchases/payments,1 OR
Qualifying direct deposits totaling $500 or more, OR
$1,500 minimum daily balance
No interest paid at all.

For saving accounts with 2% interest
Special Interest Rates are available for accounts with aggregate balances up to $1 million, and require $25,000 deposited to the account from sources outside of Wells Fargo Bank, N.A., or its affiliates. To receive the Bonus or 2% APY the account must remain linked to a Portfolio by Wells Fargo® relationship. If the Portfolio by Wells Fargo relationship is terminated, the Bonus Interest Rate on all eligible savings accounts will discontinue and revert to the Bank's then current applicable Standard Interest Rate or Special Interest Rate of 0.03%.

Where are the great rates you are claiming or talking about?
BankerAnon
BankerAnon   |     |   Comment #44
25,000 minimum with Portfolio checking and 2.15% savings guaranteed for 12 months is the best deal from any national bank.
Best National  Banks
Best National Banks   |     |   Comment #45
#44,
Here are the Best National Banks of 2019:

TD Bank
First-Citizens Bank & Trust Company
KeyBank
Flagstar Bank
Charles Schwab Bank
SunTrust Bank
Great Western Bank
BBVA Compass Bank
Bank of the West
Branch Banking and Trust Company

As you can see, Wells Fargo is missing. Sun Trust does need any requirements like Portfolios or other investments to qualify for the 2% interest rate on savings.
No Deal Is Always Better Than A Bad Deal
No Deal Is Always Better Than A Bad Deal   |     |   Comment #38
Wow!! The comments being made about Chase and Bank of America are totally inconsistent with my 20+ years of experience with them and their predecessors (Chase and BofA consist of acquired banks). My experience with them and with Citibank have been nothing but great and I have accounts with all three. I also have accounts at credit unions and smaller banks and rate chase.
Why do I stay at a large bank? Well, because when the stuff ever hits the fan, all the great rate banks with one branch or too little capital to operate or whatever, will fail you or otherwise complicate your life. The infrastructure, technology and capital structure of smaller institutions does not compare to the larger banks.
I have seen small, medium and large banks mess up royally and size does not necessarily increase or reduce the potential to mess up. However, size does determine the ability to clean -up, shore -up and survive.
Big banks are not for everyone. But for me and my house, we will always have at least one account with a large bank.
Michael
Michael   |     |   Comment #39
"(Chase and BofA consist of acquired banks)"
That is your answer, kill the competition or close them down and you become monopoly. When the competition is eliminated, no need to pay interest on the deposits or gouge the consumers with bad loans and rates.
larry
larry   |     |   Comment #47
All the negativity towards BofA is not what our experience has been. Haven't got one bad thing to say about BofA and Merrill. We just finished collect two $1k bonuses from Merrill and while our money was there the APY was 2.25% which is not a bad deal at all. Not to mention 75% bonus on our cash rewards from BofA when we dump into the checking for being a Preferred Rewards member. Free trades every month is another nice perk which we don't utilize that much. All in all very good service.
Scott
Scott   |     |   Comment #48
Chase colluded with the FDIC to force Washington Mutual out of business and let them buy it for cheap. Manufactured a run on them, really shady stuff going on when Washington Mutual got wacked. Example of why people should think banks are evil.
Scott
Scott   |     |   Comment #49
And that is why there is no more competition today and branch savings accounts are 0.01%, "legalized" monopolization condoned and probably orchestrated by equally crooked suits at the FDIC.
No Deal Is Always Better Than A Bad Deal
No Deal Is Always Better Than A Bad Deal   |     |   Comment #53
Washington Mutual created its own problems because of poor management and mismanagement. Chase was healthy enough to take advantage of its problems just as non-financial corporations do all the time. Sports teams do it also--take advantage of opportunities to improve themselves. Most other commercial banks at that time wanted nothing to do with Washington Mutual.
deplorable 1
deplorable 1   |     |   Comment #52
I feel the need to mention the worst thing about Bank of America is that they have a $3 fee for ACH transfers! I find this particularly infuriating since I have direct deposit set up with them. Also for some unknown reason they closed all the drive-thru lanes forcing you to go into the branch. Apparently this allows them to constantly hound you over and over again about using high priced Merrill edge investing. They must be paying their employees a commission for up-selling products. Sorry had to vent.
QED
QED   |     |   Comment #61
Kidding. Right? No financial institution I've ever dealt with, across tens of years, charges for ACH. Charging for ACH is ridiculous. I honestly intend no disrespect. But you HAVE to be putting us on.
deplorable 1
deplorable 1   |     |   Comment #63
Not kidding I have to ACH pull from another institution just to avoid the fee. Another strange thing it that BoA doesn't pull back the trial deposits when linking accounts for ACH transfers like most banks do. This can be useful for maintaining activity and avoiding dormant account fees. I link and unlink accounts all the time and keep the $1 yet never actually use them for transfers because of the fee. This came in very handy when setting up The Insight and Netspend 5% savings accounts as most banks would not link with them because they couldn't pull back the trial deposits. Once a small balance was put on the cards they could then be linked successfully to any bank.
DCGuy
DCGuy   |     |   Comment #66
I have a family member who has direct deposit with a savings account at Band of America and the account terms mention that an external transfer to another bank will incur a fee, but the fee amount is not disclosed. I have moved money out of the account to other banks (by starting the transfer from the other bank) and there is no charge. I have moved money from other banks to the account for no charge as well. I have only used the Bill Pay feature to move money out from the account. I have not linked any external bank accounts with the Bank of America account profile. Their meager interest rates would not provide any incentive to doing so.
ACH fees
ACH fees   |     |   Comment #62
Incoming ACHs are free, outgoings are $3, confirmed from a CSR today.
Confused
Confused   |     |   Comment #64
So does that make comment #52 half true or half false?
deplorable 1
deplorable 1   |     |   Comment #71
OK just to clarify the $3 fee is only if you are doing ACH transfers from BoA's website. If you are doing a ACH pull from a 3rd party bank there is no fee. I have seen a few credit unions that work this way as well.
RJM
RJM   |     |   Comment #57
I don't have accounts at either. When I was considering a Edge brokerage account for a bonus deal, I think I would have had to open a BAC checking. It was interesting when I was talking to the edge rep, he called me by name and I never gave him my name. It popped up on his screen because I have a credit card with BAC.

I have credit cards from both but rarely use them as they do not offer the best cashback most of the time.
I think I have a SDB at one of the local brick & mortar banks but otherwise, see little benefit compared to CUs and internet banks.

Over time, I think there will be fewer & fewer brick & mortar banks. I am a bit surprised their demise has not been faster.
bankingar
bankingar   |     |   Comment #74
Do NOT get in bed with Merrill unless you absolutely have to. There are just so many better brokerage offerings. Vanguard, Schwab, and Fidelity all have so many more features and offerings (including free trades for certain index funds/ETFs regardless of balance).
Mickey Blue Eyes
Mickey Blue Eyes   |     |   Comment #67
I agree with another commenter. This is a Google keyword trap. Bring them in with "BoA vs Chase" then show them better options on the sidebar and in linked articles.

While BoA and Chase would be good for a certain kind of clientele, but for most people, a regional bank or credit union would be a better choice. I use a regional bank for my DD. After paying bills and investments, extra cash gets transferred to higher-yield savings accounts.
I LIKE to be Scammed
I LIKE to be Scammed   |     |   Comment #68
Yes, YOU TOO can PAY to be TAKEN ADVANTAGE of and be in an ABUSIVE BANKING RELATIONSHIP!! TRUST US! SIGN UP TODAY!

Or you can join a Credit Union, whose COOP ATM network VASTLY outnumber either of these banks, and not be ripped off in every fashion, every day of your life by these bloodsuckers.

Or you can smile while you're being fleeced, and perhaps be "Customer 52,245" in the latest lawsuit against these crooked banks...
calwatch
calwatch   |     |   Comment #69
In my market Chase is at least trying to be competitive by offering a 1.75% 9 month CD (minimum amount $10,000) and they regularly shower people with bonuses for opening accounts. Sapphire Checking can be paired with the You Invest for a $600 bonus, even for those with existing Chase accounts. Chase also has opened up many branches in my area, some just 2 miles from each other in a car dependent Los Angeles suburb, while BoA is sticking with the same footprint they have had for decades.

On the other hand, Merrill Edge can be paired with BoA checking and credit cards to get the 2.625% on everything and 5.25% on a selected category. And since I just checked, BoA is offering a 13 month CD for 1.70%, a 25 month CD for 1.8% and a 37 month CD for 2% APY. Of course, these are all over a percentage point below the leaders on Deposit Accounts, but they are competitive among big banks.
larry
larry   |     |   Comment #70
That's why you go to Merrill for better rates.
Rjengs
Rjengs   |     |   Comment #75
the big guys are still pushing the public around. Even with regards to the major "regional" overhaul the biggest 5 commercial banks just have a hand on the financial industry. All true. I guess things just can't be better considering the 'economy' and all.
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#77 - This comment has been removed for violating our comment policy.

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