First Republic is one of four banks I do business with. They are a boutique bank known for their quality of service. When you go into one of their branches you don’t stand in line and wait for a teller to serve you behind a bullet proof window. Instead, you actually sit at a bank officer’s desk to deposit a check, open up a CD, or pay your mortgage. It’s quite an intimate experience. The fresh baked all you can eat cookies are a nice touch too.
Back in 2009, First Republic ran a 5-year CD special at 4.15%. With extra cash on hand, I locked in a good chunk of change in order to protect my money from further risk. In retrospect, I should have dumped everything in the stock markets. But I’ve been following my system of allocating 30% of all savings in long duration CDs since 1999 and it’s worked out well through the previous downturns so there was no desire to change.
In addition to opening up a couple CDs I also opened up a savings account given their savings account interest rate was also higher than the competition. Over the next year I ended up drawing down my savings account to the point where there was only $33.25 left. I had multiple accounts open with four banks and wanted to simplify my financial life. Carrying around four ATM cards (I hate ATM fees) and keeping track of more than five money market savings accounts was a big pain so I stopped using First Republic for anything other than a CD depository.
SURPRISE BANKING “SERVICE” FEE