Associated Bank, I Have Had Enough!
Written: Aug 22 '08 (Updated Aug 22 '08)
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Product Rating:
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Pros: Over 300 branches throughout the Midwest. Good on-line banking tools.
Cons: $5 fee here, $3 fee there, $10 fee here, cannot bundle accounts for value, understaffed.
The Bottom Line: It seems like Associated is dumping the smaller investors, leaning towards ROI for stockholders. Lack of service, high fees, understaffed.
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| JBduckling's Full Review: Associated Bank |
It is time for a change. I have had enough of Associated Bank and after nearly 40 years of being a customer, I am beginning to pull my accounts and move them to different local banks or on-line banks. Why? If banking is getting impersonal, I might of well get an on-line account with an Internet bank for a better return. I will list the reasons, both pros and cons, on Associated Bank and the reasons for my switch.
* Locations: Associated Bank has over 300 locations in Wisconsin, Illinois, and Minnesota. I originally was a teen-ager saver with our local savings and loan, then one-merger Waukesha Savings & Loan to another First Savings, to another Associated Bank. I think I might have missed one or two mergers. While it used to be important to be accessible to your customers, I believe Associated has made a commitment to steer customers to their 800 number and on-loin services. In fact, I get better customer satisfaction with the 800 rep than I do the Branch Manager.
* Locations and personal bankers: They are over-worked and have too many duties. I have waited for hours for "my" personal banker as they were closing a mortgage, redoing 401k roll-overs, opening new accounts. My branch is very busy and it seems there is only one personal branch manager. The branch has a few empty offices and truthfully, the manager is not all that up to date. I asked for a medallion signature to change an account and she was not familiar with it. As a bank manager, she has the authority to certify it and that involved another trip, with a wait.
* Services offered are many and typical. They have trust service, business banking, leasing, international banking, they are a full service, international bank. However, the basics services, CD's, savings account, checking accounts, Health Savings Accounts, fall flat. I am getting "fee'd" to death and this is the major reason I am changing. Here are the products I have and the plusses and minuses:
-CD's Rates are below average, you need high deposits to get any kind of rate. When you get the CD due statement, the rate of return is not even listed.
-Add to CD's for the boys in place of a savings account. We use that for the longer term, non-educational savings. The add to feature is nice, the rate of return is acceptable but they are "grandfathering" this product out of the market. If I close it, I lose it!
-Checking account, so many options, limited returns unless you have $100k in the bank.On-line balancing and checking is good, up to date, debit card is "free", ATM at Associated Bank ATM's are free. That used to be a big deal but now, other banks are subsidizing your use of ATM cards and reimbursing you the fees charged. We have dipped below the minimum on a rare occasion, and regardless, got "dinged" for a service fee. We called the 800 number and got it reversed. The money market fee right now is at .4% under $10k, and gradually increases until 2.5% at a quarter of a million.
-Savings accounts are all CD's or money markets. The days of a passbook are gone at Associated. We used a passbook for various savings items, it started when I quit smoking and I put the coin saved in it. When we got $2500, we moved it to a higher paying CD. I had $2799 and moved 2500 to a CD, leaving a balance of $299. It seems the minimum for a passbook was $300 and I was dinged $5 a month below the limit. I called, got the $5 reversed and next month, ding, the same thing. I closed the account and went with a local independent bank which still makes a big deal about a passbook savings account.
-Health Savings Account, With a change in jobs, I needed to open a HSA and went to my local Associated Bank Branch, waited and hour, came back another day. I had some questions, never got a response from my "personal" in person banker. It was never explained to me that there was a $3 per month charge for this .4% interest bearing HSA and to close it, a fee of $20! is charged. "I forgot to tell you." is not an acceptable answer when I asked why I have been charged this, when I have auto deposit into it, and it will get over $1000 in a couple of months.
-Tying accounts together, bundling, maximizing your deposit means nothing at Associated. You have XXX in savings, XXX in CDs, XXX in a Money Market, XXX in checking, XXX in other things, cannot be bundled. So you get dinged for all of that, $5 fee here, $3 fee here, no real interest income. I have found a local bank which kicks butt on service and bundles accounts for best value for the customer, not the greatest return to stockholders.
-On-line banking is easy to use, and perfect with Quicken, daily updates if needed. They have a very easy to use, very documented on-line banking service. This is, for now, free. On-line transfers are free, some in person or phone you get dinged on, up to $10 per time. With the number of paper checks not being used, I am still surprised at the fee charges.
-5,000 associates are employed by Associated, most, I am sure are minimum wage folks, learning the business. I get tired asking questions, especially the answers from 18 year olds named Tina. Yield on stock is outstanding, $1.28 per share for a yield of 6.64% as of 6/30/08. Like most financial stocks, the price is at an all time low of $19 or so. It has over $22 billion in assets. Associated actually earned 37c per share in the second quarter which is an accomplishment for the shareholders. In the perspective, "Core fee based revenue up 12% over first quarter." I am sure this is on my account alone. This was "led predominantly by increased service charges on deposit accounts." No sh sherlock. Mortgage income was down $5 million so I guess you have to make it up somewhere, by dinging your best customers.
-Tools and personnel, Associated is stressing on-line tools,on-line banking, conversing via e-mail. "Technology enhances the service provided by Associated Bank." Yes, I deal with a smaller branch, but I still expect value and service and I believe Associated Bank is failing in both.
Recommended:
No
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Epinions.com ID:
JBduckling
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Location: The Great State of Wisconsin
Reviews written: 393
Trusted by: 172 members
About Me:
The boys have Mommy's good looks. There's a resemblance between me and cat. Poor Kitty!
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