So for the cost of keeping $15000 stuck in a checking account for say 10 years, you get a whopping $927.31. You'd get more money back dropping that into a high-efficiency AC system or solar panels.

Meanwhile, most people don't even have $15000 lying around with nothing else to do. My understanding from surveys done by various companies is that 60% of Americans don't even have $1000 in savings. And those with beaucoup money are negotiating their own loan rates, because there's better places to park their money for long-term interest.

Well you can't convert your solar panels to food if you have a period of unemployment or an emergency.

I needed a check from Discover Bank (online savings, similar to Ally) to pay my old outsourcing HR company back for a 401k loan. Discover Bank sent me an "official check" (which takes ~8 days to arrive from issuance), which (according to the FDIC consumer protection laws [1]) is identical to a cashier's check, but the outsourcing HR company would not accept an "official" check, only certified/cashiers.

Had I banked at Chase, they would've provided me an actual "cashier's check" in branch at a moment's notice.

Is it worth ~$200/year in interest to not be able to get to your savings at a moment's notice? Before, I would've said yes. Now that its cost me an $1800 IRS penalty, no longer.

[1] https://www.fdic.gov/regulations/laws/rules/6500-3222.html

Did you appeal the penality with the IRS?

This kind of thing doesn't normally happen, or shouldn't.

You should have a local bank account for the times you need local branch if you do most of your banking online.

If you're going to spend quite a bit of money soon, like within a month or so, you should move that money into a local branch beforehand, like I did when I was buying my house and I knew I'd need the funds on closing date.

Even if you fail to do that ahead of time you can wire the money for, maybe, $20 to the local bank, wire transfers are instant, and get the cashier's check there.

That's like saying "you shouldn't use brokerage accounts cause if you need the money you'd have to wait for the sale to settle before you can access your funds."

I was between jobs, my child was sick, and my dog was dying. I agree I could've solved the problem by starting the process immediately when I separated from my last employer. Life happens.

I have documentation to show I made a best effort attempt to repay the loan in time (official check, fedex tracking numbers, etc), but I won't know if its good enough until I file next year's tax returns and challenge the 401k provider's 1099-R.

creepydata suggested that you should appeal to the IRS. There is an appeal process. Talk to your accountant about doing that.

Was 8 days your only option? I bank with Capital One and I can get a check overnighted anywhere for $20 in processing fees.

They didn't offer to overnight a check until they mistakenly voided the first check; it would not have arrived in time.

Most people don't have enough in bank accounts for it to matter. People do tend to price check loans rates. Those who keep more money in their bank account will price check CDs, but for a checking/savings account you are probably looking at around $20 a year if you find the best account - having a local bank close by is worth more than that.

I switched from BOA to ALLY for the satisfaction of asking BOA if they could give me 100X better interest rate.

And how did they respond?

A surprisingly succinct "No."

Fun fact: it is a crime to rely on ATMs if you use BART. You MUST be in possession of small bills to buy your freedom from the BART faregates if your Clipper card is underpaid while trying to exit.

$20s and credit cards are only accepted by machines on the outside of the faregates. It is not possible to load excess value onto your card while underpaid; you can only pay the card up to the minimum value to exit, in cash, subject to the change the machine is prepare to give.

If, like me, the only cash you carry is $20s from an ATM, the only way to get out of BART in this situation is to illegally walk through the emergency exit gate.

Being able to go to a bank teller who gives out $5s and $10s is a big deal.

You can get higher interest rates.

https://www.nerdwallet.com/banking/best-checking-accounts

Yup. And if you want to do even better, go with Goldman Sachs.

While it sounds like the op is joking, a friend of mine recently researched online banks and recommends Goldman Sachs Retail Bank as a good choice. Similar offerings as Ally.

Nope definitely not joking. They are offering 1.20%. It's craziness. Meanwhile banks like Chase are at like .11 or something.

Is that on checking?

online savings

ok thanks.

Perfect account for building an emergency fund. That's why I'm using it.