I have been using the same primary bank for my entire adult life (a local Ohio bank). I used to think loyalty, specifically with banking in my early years, would lead to good relationships that would power my future endeavors. However, over the years our relationship has tarnished. Particularly, when we purchased our current home almost two years ago now, and my long-term commitment and funding barely made a difference in these difficult financial times. However, switching banks gets to be a monumental task when you consider not only switching all our direct deposits into several different checking and saving accounts, but also the extraordinary list of vendors we have set up in bill pay. Switching banks also becomes limited when you like the convenience of several different branch offices within a certain radius of your home, in case you need to stop and get cash before heading out.
However, within the last year I decided to try out a new local branch office of Dollar Bank, due to an exceptional advertised interest rate (at the time 1.5% versus the 0.25% from my lifelong bank). It also worked out perfect with the timing of new tenants in our old house, so I could set up a independent, interest bearing account. When I opened a paired checking and savings account (Dollar Bank conveniently gives their checking and savings the same account number), I did not receive any type of bonus besides the stated interest. Today, Dollar Bank has a pretty great promotion to encourage new deposits.
Get up to $150 with the Dollar Bank FreeMONEY Checking program, and if you decide to pair it with a FreeMONEY Saving account, earn 1.2% APY.
The $150 bonus is broken into three pieces.
1) $50 rebate if opened by 2/28/13, applied towards Dollar Bank Debit MasterCard purchases made via signature. I read this to mean you need to spend at least $50 on the card to earn it, but the rebate is actually applied to the card within 7 days of opening.
2) $50 credit after $250 deposit within 60 days.
3) $50 credit after 1-year anniversary.
The bad thing is thing is that the bonus is subject to a 1099, of which will be broken down over two years due to the configuration of how the bonuses are applied.
Accounts require a minimum $50 to open, and come with no monthly service charge or minimum balance.
Debit card transactions above $10 earn $0.10 in rewards.
The savings account will earn 1.2% APY up to $20,000. To maintain the interest rate, you must maintain 6 purchase transactions per month on the checking debit card.
Personally, I have been really impressed with the Dollar Bank product. Perhaps my biggest advantage is honestly the stellar customer service I receive from my local branch. After the first visit, every person greets me by name when I walk through the door. The friendliness of the staff may not be typical of the brand, which I do not know since I have yet to enter a different branch, but it beyond impresses me. It makes me feel like I am working with a small, local bank with the backing on a national brand.
My only cons so far have been more of a personal preference than anything. Those complaints include the need to switch my password every so many months, and you can not use the last passwords. I realize online safety is a concern, but let me worry about my password and you worry about watching my account. While I do not use the same password for accounts, having to remember another new password every so many months is an inconvenience.
In addition, their online organization and account management could use some improvement. I remember just trying to get my bill pays set up was a major chore deciding where to go on the site. Even after I found out where I needed to go to set up a bill pay, there was a whole, several day drawn out approval process for each vendor.
All of the above is done with our safety in mind, but comes at a inconvenience to the customer. For that I have been willing to sacrifice for the superior customer service and excellent interest rate.
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