Starting medical school soon, looking to change banks. Need guidance.

[tradkeke]

I currently use a major national bank, for various reasons I am looking for a more local/regional bank or credit union. Is this a bad idea given that I may move for residency? I have had tons of people tell me to leave my bank now (bank of america) and go to a local bank while others say that local banks simply can't match the resources and that given how everything is online/in app now that it is dumb.

What would you guys recommend for a medical student? Also any strong opinions on bank vs credit union?

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[TMP-SMX]

Whatever has no fees and is easy to access. Nothing wrong with having a credit union now and moving the money if you happen to move out of the area.

 

[FlowRate]

I left Wells Fargo and joined BOA when I moved across country for med school. Used the free student online BOA services until I started residency. Now I have enough $$ in the bank that I get their first level of preferred member perks including pretty much all core services remain free.

 

[Laradd]

Id say just go with the bank. No idea where your going to do a residency and as a med student its not like your the prime customer of a bank or credit union who will be able to take advantage of the different services they offer.

 

[Stroganoff]

If you choose wisely, where you move in the country doesn't matter. For example, I've been with Alliant CU since 2011 for Savings and 2014 for Checking (which pays 0.65% APY btw). They're based out of Chicago and have very minimal brick-and-mortar presence (i.e., not that many physical branch locations, allowing them to pass on savings to customers in the form of very high savings rates). I've never once been to their physical location(s).

I recommend a hybrid approach based on needs:

1. Choose a good FI (financial institution, includes banks and CUs (credit unions)) that offers free checking with no hoops to jump through. Bonus points if it also has competitive savings, ATM fee rebates, good online banking, etc. I've been ecstatic with Alliant CU and highly recommend them.
2. Only supplement with a local FI if you could benefit from local services. For example, if you need a safe deposit box (SDB), you would need a local FI that has them available. If you need free notary public services, a local FI presence could help. If you need to deposit a ton of coins, a local FI presence could help.

I basically do all my banking online and have zero need to ever visit a physical location anymore. I recommend steering clear of the big FIs like Citi, Chase, BoA, Wells Fargo, PNC, etc. since they've come to nickle and dime the customer with fees and BS and have terrible savings rates.

Go with a national FI with a good reputation, such as USAA, Navy Federal CU, Digital Federal CU, Pentagon Federal CU, Alliant CU, etc. Others on the Web love Ally, but I had a horrendous experience with them in 2013 trying to open savings, then subsequent savings accounts, and their customer service was dishonest and infuriating, so I recommend against Ally based on my experience alone. I'm a member of all of the above (except Ally) for different reasons, but their savings rates suck except for DCU's APY on the first $1000. Very happy with Alliant CU for checking and savings (with like 10 supplemental savings accounts -- one for each goal -- for Emergency fund, Vacation, Wedding, Next Vehicle, etc.)

Bottom line in all this is that where you go to med school, residency, or eventually end up living and working should no longer be relevant to where you bank, since all the important services are done via online banking, mobile banking, and EFT/ACH anyways, with decreasing reliance on a local brick-and-mortar presence.

 

[LookForZebras]

Given all that moving that many physicians do between med school, internship, residency, fellowship, and a first job, it's really handy to have a bank that you can stick with wherever you end up geographically. I've been happy with USAA for this reason.

 

[235009]

Charles Schwab. You can use any ATM anywhere in the world and they'll refund the fee. No minimums for the checking account.

 

[Stroganoff]

Forgot about Schwab and Fidelity. Both are popular options for accounts that for all intents and purposes are checking accounts. They're fee-free as far as I know and offer ATM reimbursements and the usual EFT/ACH. But if you want traditional savings accounts, you'll have to look elsewhere.

 

[abolt18]

I moved from the mountain west region to Midwest for med school. This was 6 yrs ago. Still do all my banking with a small(er) local credit union that only covers 3-4 Western States (America First Credit Union). I have never had a single issue. When we bought a car in med school, I was even able to do my loan through them long distance. Just required a little faxing and overnighting documents and I was done. They have excellent customer service and are part of a huge ATM Network so you can still easily pull out funds without any fees.

For my emergency fund, that's in a high yield savings account making over 2% in interest right now with Ally bank. Only good experiences with them so far.