Bank of America has left a lasting impression on me, but not for good reasons. For years, they’ve been the only bank that consistently made me feel undervalued, despite their claims of having fantastic staff. It’s ironic, considering their stock plummeted during the financial meltdown—seemed like karma to me.
In 2008, when the economic crisis hit, I spread my investments across multiple banks, including Bank of America, to hedge against potential failures. However, I started with Citibank, USAA, First Republic, and Chase. By 2010, as the markets began to stabilize, I pulled out all my funds from Bank of America. Their rates were just not competitive, and the customer service was disappointing.
Banks essentially make money by borrowing your funds at a low rate and lending them out at a higher one. This is known as net interest margin, or NIM. The basic expectation from a bank—aside from safety and liquidity—is good customer service, which Bank of America seemed to have forgotten.
Let me give you some examples of their lackluster service:
I had set up two appointments for a mortgage refinance, and both times the Bank of America representative stood me up. The second time, he even confirmed his availability 45 minutes before our meeting, only to leave me waiting for half an hour. His boss had to apologize for his absence, which was already a huge turn-off for me as punctuality is critical in my book.
When I managed to refinance with another bank at a better rate, Bank of America was petty about it. They made me fill out unnecessary paperwork and charged me hefty fees just to access my own records—something I hadn’t experienced with other banks.
There was also the time I lost my online password. Despite not having my ATM card, which I had destroyed over a year ago, they insisted I needed the card number to reset my password. This resulted in a frustrating 30-minute call with customer support just to regain access to my account.
And let’s not forget their rates. Their CDs and savings accounts offered rates significantly lower than other banks—at least 0.5% to a full 1% less. This meant a loss of up to $2,500 annually on a $250,000 deposit, which is just throwing money away when better options are available.
Even the few good experiences I had, like a responsive personal banker, ended poorly. She was great at her job, but internal barriers kept her from being effective. Eventually, she was fired, and that was the last straw for me with Bank of America.
Despite a massive bailout, I doubt Bank of America will avoid financial trouble again, especially with their track record of poor service and uncompetitive rates. Add to that their legal troubles, like the $10 billion lawsuit filed by AIG for mortgage-bond investment fraud, and their future looks bleak. This, combined with government restrictions and a decline in their earnings potential, has really painted a grim picture.
Personally, I had to leave Bank of America. The service was so subpar that I felt like a second-class citizen, and it just wasn’t worth staying. There are definitely good people working there, but they’re overshadowed by the larger systemic issues. If Bank of America focused more on customer service, they might just turn things around. For now, though, they’re a prime example of how poor management and service can drag a company down.
