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I would trust a bigger bank more than I would a smaller bank, simply because the former has more money (or should, anyway...). Really though, the moral here is

I would trust a bigger bank more than I would a smaller bank, simply because the former has more money (or should, anyway...). Really though, the moral here is to not put all your eggs in one basket. Keep another checking and/or savings account at another bank, big or small, with ample funds so your finances are redundant in the face of freak incidents. And if you are really paranoid or just have bad luck with these things, keeping some physical cash at home for true emergencies certainly wouldn't hurt.

teddyh 3y ago
> I would trust a bigger bank more than I would a smaller bank I never understood this concept. Would you trust Amazon and Google more than a smaller provider? I trust big companies to still exist for the foreseeable future, but I don’t trust them to serve me, personally; they are known for disabling individual accounts for little or no reason and providing no recourse. The bigger the company, the less incentive they have to keep any individual customer.
- rcdemski 3y ago
  That’s what I enjoy about a local credit union. In a worst case scenario there is a building local to me with folks personally invested in solving my problem.
NoZebra120vClip 3y ago
Credit unions are not "a smaller bank"; they work differently, they are regulated and insured differently, they are closely connected to the local community, and these are more than superficial differences. Credit unions are smaller businesses than some banks, so they may have fewer branches, less sophisticated mobile apps, etc. but it's nice to walk into your home branch where everybody knows your name, like in that TV show about a bar.
- vel0city 3y ago
  On the flip side, I've literally never walked into a branch of any bank I've ever actually banked at. The only times I've ever walked into a bank was to make large cash withdrawals that most ATMs wouldn't honor, but those were never at a bank I actually had an account with. And those times it was just a large debit card transaction, zero fees. Going to an actual, physical bank location just seems archaic to me. It's about as dated as going to a Blockbuster to rent a movie. Outside of maybe some big business loan negotiations I can't imagine needing an actual person to really talk to for basic banking needs. What banking task would be better handled taking time to travel to the bank, wait in line, talk to a person who may or may not remember you, and have them do it as opposed to just doing it yourself on your computer anytime anywhere anyplace? Note, I'm not talking about investing, as there can often be a lot of questions about how specific investment products actually work. I'm only talking basic banking like checking, savings, CDs, credit cards, and auto/home/personal loans. I don't do any real complex investing at places where I do my banking.
  - NoZebra120vClip 3y ago
    Banks offer Notary Public services. Sometimes I like to pick up a few rolls of quarters. Safe deposit boxes (are also being phased out.) Bottle of water when I'm in the neighborhood. Cashier's check or money order purchases. I believe it was necessary for them to see me in person to open a Certificate of Deposit. YMMV. Yes, branches are becoming less important.
phpisthebest 3y ago
First and foremost never consider a credit union a "smaller bank" the rules and regulations around credit unions are very very different than commercial banks the biggest being they are coop's i.e member owned, and non-profit. second yes a large bank like JP Morgan Chase has most assets, and is "to big a fail" so institutional collapse is impossible, however they also are soo big that your individual account means nothing to them and they have no incentive to provide any customer service at all, which results in a numbers of horror stories where accounts are locked, cancelled, frozen for months or even years with people unable to access funds or at the mercy of the large institution for when or if they will ever get their money back. Where the local branch you go to has zero power or authority to help you, or even access any real info about your account, and to get any info it is a exercise in calling 100's of different helpdesks... Sorry I will take a Local Credit union 100x, secure knowing that even if the institution were to collapse and credit union have a very very small collapse rate compared to commercial banks, my deposits are fully insured anyway so my money is safe, and I get 1000000000% better customer service.
- Dalewyn 3y ago
  >First and foremost never consider a credit union a "smaller bank" the rules and regulations around credit unions are very very different than commercial banks the biggest being they are coop's i.e member owned, and non-profit. My concern as a common man is whether I can trust a bank (or credit union) to keep my money more safe and accessible than I can myself. I don't care what their internals look like, they're all banks of varying sizes and reputations as far as I'm concerned. >however they also are soo big that your individual account means nothing to them and they have no incentive to provide any customer service at all I bank primarily with US Bank, and their customer support has been nothing short of exemplary both in-person at the local branch and over the phone. That exemplary service combined with their size means I will continue to bank with them for the forseeable future. I will add, for context, that I live out in the countryside where all business matters become more personal as a matter of practical reality. Most of the bankers working at the branch all live locally, after all. This is irrelevant for the customer support folks on the phone, of course, which as I just said are exemplary nonetheless.
dafelst 3y ago
The people highlighted in this article are living paycheck to paycheck, they do not have enough eggs to necessitate multiple baskets. The issue here is that once again a shitty mega-bank has prevented them from accessing the little money they do have at a time where they need it. The amounts here are literally a pittance to these institutions, and they _could_ make these people whole immediately with little to no impact on their bottom line, but their systems and bureaucracy are so bloated and inefficient that it takes days to weeks to fix it. For people like you and me, that is frustrating and inconvenient and worthy of a twitter rant, but ultimately not a big deal. For the vulnerable in our society, this is potentially life altering, and it is mind boggling that these institutions can continue to get away with treating people like this with practically zero consequences.

teddyh 3y ago

> I would trust a bigger bank more than I would a smaller bank I never understood this concept. Would you trust Amazon and Google more than a smaller provider? I trust big companies to still exist for the foreseeable future, but I don’t trust them to serve me, personally; they are known for disabling individual accounts for little or no reason and providing no recourse. The bigger the company, the less incentive they have to keep any individual customer.

rcdemski 3y ago
That’s what I enjoy about a local credit union. In a worst case scenario there is a building local to me with folks personally invested in solving my problem.

NoZebra120vClip 3y ago

Credit unions are not "a smaller bank"; they work differently, they are regulated and insured differently, they are closely connected to the local community, and these are more than superficial differences. Credit unions are smaller businesses than some banks, so they may have fewer branches, less sophisticated mobile apps, etc. but it's nice to walk into your home branch where everybody knows your name, like in that TV show about a bar.

vel0city 3y ago
On the flip side, I've literally never walked into a branch of any bank I've ever actually banked at. The only times I've ever walked into a bank was to make large cash withdrawals that most ATMs wouldn't honor, but those were never at a bank I actually had an account with. And those times it was just a large debit card transaction, zero fees. Going to an actual, physical bank location just seems archaic to me. It's about as dated as going to a Blockbuster to rent a movie. Outside of maybe some big business loan negotiations I can't imagine needing an actual person to really talk to for basic banking needs. What banking task would be better handled taking time to travel to the bank, wait in line, talk to a person who may or may not remember you, and have them do it as opposed to just doing it yourself on your computer anytime anywhere anyplace? Note, I'm not talking about investing, as there can often be a lot of questions about how specific investment products actually work. I'm only talking basic banking like checking, savings, CDs, credit cards, and auto/home/personal loans. I don't do any real complex investing at places where I do my banking.
- NoZebra120vClip 3y ago
  Banks offer Notary Public services. Sometimes I like to pick up a few rolls of quarters. Safe deposit boxes (are also being phased out.) Bottle of water when I'm in the neighborhood. Cashier's check or money order purchases. I believe it was necessary for them to see me in person to open a Certificate of Deposit. YMMV. Yes, branches are becoming less important.

phpisthebest 3y ago

First and foremost never consider a credit union a "smaller bank" the rules and regulations around credit unions are very very different than commercial banks the biggest being they are coop's i.e member owned, and non-profit. second yes a large bank like JP Morgan Chase has most assets, and is "to big a fail" so institutional collapse is impossible, however they also are soo big that your individual account means nothing to them and they have no incentive to provide any customer service at all, which results in a numbers of horror stories where accounts are locked, cancelled, frozen for months or even years with people unable to access funds or at the mercy of the large institution for when or if they will ever get their money back. Where the local branch you go to has zero power or authority to help you, or even access any real info about your account, and to get any info it is a exercise in calling 100's of different helpdesks... Sorry I will take a Local Credit union 100x, secure knowing that even if the institution were to collapse and credit union have a very very small collapse rate compared to commercial banks, my deposits are fully insured anyway so my money is safe, and I get 1000000000% better customer service.

Dalewyn 3y ago
>First and foremost never consider a credit union a "smaller bank" the rules and regulations around credit unions are very very different than commercial banks the biggest being they are coop's i.e member owned, and non-profit. My concern as a common man is whether I can trust a bank (or credit union) to keep my money more safe and accessible than I can myself. I don't care what their internals look like, they're all banks of varying sizes and reputations as far as I'm concerned. >however they also are soo big that your individual account means nothing to them and they have no incentive to provide any customer service at all I bank primarily with US Bank, and their customer support has been nothing short of exemplary both in-person at the local branch and over the phone. That exemplary service combined with their size means I will continue to bank with them for the forseeable future. I will add, for context, that I live out in the countryside where all business matters become more personal as a matter of practical reality. Most of the bankers working at the branch all live locally, after all. This is irrelevant for the customer support folks on the phone, of course, which as I just said are exemplary nonetheless.

dafelst 3y ago

The people highlighted in this article are living paycheck to paycheck, they do not have enough eggs to necessitate multiple baskets. The issue here is that once again a shitty mega-bank has prevented them from accessing the little money they do have at a time where they need it. The amounts here are literally a pittance to these institutions, and they _could_ make these people whole immediately with little to no impact on their bottom line, but their systems and bureaucracy are so bloated and inefficient that it takes days to weeks to fix it. For people like you and me, that is frustrating and inconvenient and worthy of a twitter rant, but ultimately not a big deal. For the vulnerable in our society, this is potentially life altering, and it is mind boggling that these institutions can continue to get away with treating people like this with practically zero consequences.