Completed My Move From BofA Over To Charles Schwab Bank.

Phew – that was more work than I thought it would be! Sure, I could have moved a boatload of money from one of my ING accounts to Schwab to cover any expenses, changed all my automatic bill pays, and hoped for the best – but I didn’t. Instead I did it slowly over a month or so, changing my direct deposits right after they went through for January, changing my e-bills as soon as they were paid for January, and slowly funding the Schwab checking account with money from my BofA savings account. As of this morning, all my e-bills have been moved, all my direct deposits have been redirected, all my automatic payments (like for my Subaru) are switched over, and my BofA check card has been removed from my wallet. There is still a few hundred bucks left in the account just in case I missed something that may yet come through, but otherwise I am completely switched over. And so far, I think it’s the best decision for my banking needs that I could have made. I considered moving to a credit union, which are fantastic, but I also wanted to consolidate 5 different brokerage accounts to the same place/company – so I also opened a new Schwab brokerage. This will make tracking all this stuff way easier now!

So here is where I stand right now in terms of the accounts I have:

Checking = Charles Schwab bank
Brokerage for individual stocks, bonds = Schwab
Brokerage for Roth & Mutual Fund = T. Rowe Price
Savings = ING Direct (emergency fund, quarterly taxes fund, motorcycle fund)

Consolidating down to these accounts has certainly made my life a little easier and a little less confusing.

As for why I switched to Schwab from BofA, well, there are many reasons:

– Free checking
– Free checks
– Free address labels
– Free deposit by mail envelopes, postage already paid
– Free use of any ATM, anywhere. Any fees I am charged by the ATM owner are refunded to me in my account
– Checking account pays 0.60% APY
– No account minimums, fees, charges
– And for the brokerage, they have $8.95 trades, no-fee ETF’s, and no account minimums

While they are still a bigger bank than a local credit union, they are nowhere near the size of BofA or Wells Fargo – and that’s what I was trying to get away from. I have grown very tired of hearing about big banks and their problems, and then watching them hand out million dollar bonuses while nickel and diming me to death. So, I moved my money somewhere else. And if Schwab starts doing it too, I will leave them as well. But for now, I am very happy.

How about you? Have you moved your money to a different bank lately? If so, why? Many are participating in the “Move Your Money” campaign as of late – are you?

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Comments (12)

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  1. Sam says:

    I switched from USAA to a local bank last year due to decline in service. It was a hard transition because I’d been banking with them since I was 17.
    I like the local banks better – I like being able to go in & talk to a human if a problem warrants it & that human will take ownership of the problem and actually do something.

    I keep my money in different banks that I use as “pots” so I don’t accidentally miss something and also to take advantage of different bank’s features – the credit union I use for daycare has been starting to act like a big bank with their policies and new confusing web page so, I’m transitioning away from them to another credit union that is nice and easier to physically swing by (and their web page isn’t in a size 2 font).

    I shouldn’t have to pay or work at being a banks customer. It should be easy & painless.

  2. I love Schwab and have all of my investment accounts with them (consolidated everything finally as of a few months ago). For a few years, I’ve also considered a checking account with them.

    I really like having a safe deposit box, which is one of the main reasons I’m still with Wachovia, but I may experiement with Schwab soon!

    Keep us posted on your experience!

  3. Andy Hough says:

    I have most of my money in a local bank because it has rewards checking. Since my BofA account is free I’m keeping it open because I don’t want to bother changing all my deposits, billpays, etc.

  4. Bill says:

    I switched to a small regional bank because they pay 3.01% on amounts up to $25,000. I just have to make 10 debit card transactions a month (which is not hard to do).

  5. The customer service at Schwab is excellent too by the wya. At least they have been with me.

  6. Austin says:

    Do you use the Schwab credit card?

    I don’t spend enough on a single area so the 2% back is nice. It sucks that it automatically goes to the brokerage account first, but it’s a small price to pay and I’ve loved my time with them.

    Austin @ Foreigner’s Finances

  7. Dwhite2762 says:

    Moved my money from chase to my local credit union. I couldn’t be happier (especially when I see that Jamie Dimon got 19million dollar bonus this year).

  8. I have the majority of my money in my local credit union. While they don’t have the highest interest rates, the customer service and other services can’t be beat. Even though they are a credit union, they offer envelope free ATMs and the can even print debit and credit cards right there in the branch.

    I also have a Schwab account and I am a big fan of them too.

  9. Newbe says:

    I just opened a Schwab Checking and Brokerage account. I am nervous about it because I really liked being able to check my accounts from my iphone, which I can’t do now. But no more strange Chase fees, “financial management software” I don’t even know what that is, but it was 10$/month that they would not refund me.

    I am glad to hear others are having such a great experience with Schwab. Makes me feel a lot better about the move.

  10. Ben says:

    I have been extremely happy with Schwab. I find their customer service to be excellent. They also have very good online tools for banking and investing which is why I switched from my previos local bank, Wainwright.
    In general I’ve had great experiences with local banks until they are bought by a bigger one like Fleet or Citizens. Then all the fees appear and costomer service disappears.
    I remember when calling Fleet and pressing 0 for a representative caused the voiceail system to hang up. I’m not sure if the configuration was intentional or not.

  11. Nikolas says:

    Quick Question, I recently opened a new brokerage with linked checking account and was wondering how long it takes for everything to be set up. It has been approximately a week and I just received my brokerage account information packet in the mail but have yet to receive anything pertaining to my new checking account. I was just wondering how long it takes to receive my debit card, account information ect.

  12. Varun says:

    I remember reading this article. I switched to Charles Schwab as a result of that. It’s been a breeze since then. I travel the world a lot so it’s nice to have free access to any ATM around the world. Cant thank you enough for this post