PSA/rant

[hatman]

I've been seeing all these ads lately for Washington Mutual bank. "Look! We offer free checking! And no ATM fees! Isn't that cool and revolutionary? Aren't we the greatest?"

Well, uhm... no?

Never mind that when I was a kid (not so very long ago), free checking was standard and no one had even heard of ATM fees. I mean, we're well past the days where the bank gave you a free toaster or something just for opening an account, but I don't see how you can claim to be revolutionary just for taking things back down a notch.

But it's more than that. Because I see those claims and I think "gee, that's nice, but you know what? My bank does more and has been doing it for years!" WaMu offers free checking? That's nice. My bank gives me interest on my average daily balance (only 1.5%, but still, they're paying me for the privilege of maintaining my account). MaMu offers free ATM withdrawals? Good for them. My bank lets me use just about any ATM in the world, and will refund the transaction fee the other bank charges (up to $1.50 up to 10 times a month). And I get great customer service, not that I even need it most of the time with things running so smoothly.

What bank am I using?

USAA

You ever hear of TIAA-CREF? They offer financial services to people who work in medicine (doctors, nurses, researchers, etc). The idea with them is "you take care of us, so we'll take care of you."

USAA has the same idea, but they serve the armed forces (and their immediate families). They offer banking (checking, savings, loans, etc), investment services (financial advice, mutual funds, etc), insurance (home, car, life, etc), credit cards, and similar services. USAA membership can also get you some deals and discounts (like you get with AAA or AARP or whatever).

All with great terms and customer service.

How do they do it? In large part, I think it's low overhead. They only have one branch in the country. Unless you live in a certain area of Texas, everything is done remotely. Phone, mail, over the web, etc. So, for the ATMs, for example... they don't have any (maybe one or two in Texas). They just joined a bunch of the biggest ATM networks, saved themselves the money it would have taken to maintain their own machines, and then passed that savings along to the members in the form of transaction fee refunds. So, it's stuff like that.

But it's also because their mission is to offer good service to their members, not to make every cent possible for themselves. It makes a difference.

Comments

[kb91.livejournal.com]

Sounds like a great deal! Incidentally, I believe TIAA-CREF actually started out in the academic field, offering pensions to teachers, then branched out from there. As an academic, Jim has had his 403(b) with them since he got out of grad school, and more recently, they've begun their own line of mutual funds available to the public and offer other finanicial services. It's a really good company that's always highly rated, both for solid returns and low expenses.

[pgwfolc.livejournal.com]

Ah, yes. I should have known that. Used to know that. Meant to look it up before I posted, but got lazy. Thank you.

But it just goes back to my point:

TIAA-CREF and USAA are really cool, and if you can use their services, you should. :)

[beansideirae.livejournal.com]

*boggle*

maybe after a couple re-reads, i'll understand this.... *shakes head rapidly to clear it* sorry. if i can remember how to use my checkbook, i'm doing pretty good. (ok...if i can count the change i get back from buying gas, i'm doing good.)

[pgwfolc.livejournal.com]

Basically:

There are fees and surcharges associated with checking accounts which didn't exist 10-15 years ago, but which are now commonplace.

Washington Mutual is a bank that has been advertizing quite a bit (around here, at least) about how they don't charge those fees. They claim that this makes them the rebellious upstarts who are revolutionizing banking. That they're looking out for the little guy, etc.

Thing is, my bank, USAA, not only doesn't charge those fees, it gives me money in their place. (Refunding the fees other banks may charge me, and giving me interest on what I have in the account.)

So...

Most banks, especially the big ones, are evil money-grubbing institutions more concerned with squeezing every penny they can out of whatever they can get away with squeezing.

Washington Mutual is slightly less evil, but not nearly as revolutionary as they claim.

USAA, though, was created by army officers to help out people in the military. They're most concerned with doing well by their members. If you can qualify for membership (i.e. if you or your parents are or ever were in the armed forces), they're really cool.

[beansideirae.livejournal.com]

i almost followed that, lol. sounds cool. i have no idea what my bank does. (that's really sad, i know...) i've had 45 cents sitting there for about six months...

so which is/was it, you or your parents? lol.

[pgwfolc.livejournal.com]

We're actually pacifists, for the most part, and the miltary wouldn't take me even if I wanted to go (I'm diabetic).

My dad served as a doctor in the army around the time of the Vietnam war. As part of his training, he had to go to the rifle range. He earned the second-highest award possible (one of his shots was on the line, I think), but refused to take the honor. He didn't want an award for being able to shoot a gun.

[beansideirae.livejournal.com]

ahh. *watches you and your family, for the most part, go up 10 points in my estimation* i am a pacifist also (for the most part) very anti-war anyway.

that's cool about your dad.