Let me share a little secret that not many people know.
I work for a company that uses Paycor as its payroll provider. Our payroll runs on a two-week cycle, so I get paid every other Friday. With direct deposit, I should see my money first thing on Friday.
I direct my money to three banks: Chase Bank, a Credit Union, and Capital One.
Why three banks, you might ask? Here are the pros and cons of each:
1. Chase Bank
- Pros: Chase is the biggest bank of the three, with branches and ATMs on nearly every corner, providing maximum convenience.
- Cons: Their checking accounts don’t generate interest, and their savings account offers the lowest interest rate.
2. Credit Union
- Pros: The credit union provides the highest interest yield, even on checking accounts. They also reimburse ATM fees up to $20 per month.
- Cons: There are no branches near my house. While most transactions, such as depositing checks, checking balances, and transfers, can be done via app or online, depositing cash or other branch-related transactions are not convenient.
3. Capital One Bank
- Pros: Capital One deposits my paycheck on Wednesday afternoon, two days earlier than the other banks. Their interest rates are between those of Chase and the credit union, and their checking accounts also yield interest.
- Cons: They don’t have as many branches or ATMs as Chase.
As you can see, while banks might look similar on the outside, they have significant differences. It’s important to understand these differences to maximize the benefits of each.
