I've been a customer of M and T since they acquired Farmer's Trust about 12 years ago and a customer of Farmers Trust for another 12 years beyond that. I've held between 10k and 90k in checking at various times and I always believed I was a valued customer. Until today... I'm a soccer coach and my players sometimes bring me checks without my name on them and also with the other coach's name on them too. I usually have them endorsed or I'll write my name in the payee line, then cash or deposit the checks. But today that changed!
As I was writing my name on a $65 check, I was scolded by the teller and she refused to cash the check! I called Jen the Carlisle Pike branch manager over, and, despite having about 10k in checking, they refused to cash the check. They then rejected another check that had been written to the other coach (but it had been endorsed to me!!). Last year I eared about $2 in interest on an average 0f $15k in checking deposits, so I'll be looking for a new internet bank. As an avid investor, I have to wonder how long it will take before the general public has the same wake-up call as I did today. This has me thinking... What is the future of the brick-and-mortar type banks hold when they're only paying $2 annually and are mistreating their customers???
I don't buy that. I mail checks to my online banks like Charles Schwab and Fidelity and I've never had them returned. I just happened to have a bunch of nuisance checks in my wallet that I had forgot about, so instead of using the cash machine, I went to a teller. I believe, they were protecting, if anyone, the check writer. If the check were bad, the writer's banks could have returned the checks to M and T and debited my account accordingly.
My point of this whole message is to discuss the brick and mortar type bank, not my personal issue with M and T. My issue dues bring to mind the possible obsolescence of various old-school business, like Borders and Blockbuster. Times are changing an successful investing takes foresight. I'm curios how long these style banks will hang on, especially those that torque their customers???
What's the difference between, say, M&T, and an internet bank? You may not be able to mail checks to M&T, maybe you can, I don't know. But you can also log on to M&T and do all your banking online. Checks are a thing of the past anyways. Most people do EFT. They get direct deposit. If you want to use technology to make check deposits, you can always use an ATM. I don't think M&T or banks in general are going to be wiped out by internet banking. They have all the features of internet banking plus local presence. What happens when you want to withdraw money out of an ATM? What happens when you want to take out a loan and talk to a loan officer? What if you want to get a notary? What if you want to put something in a safe deposit box? These are all things internet banking won't let you do. What if you have a large CASH deposit, are you going to send CASH through the mail or go through the hassle and expense of turning it into a cashier's check to mail it? No thanks, no internet banking for me. Sure, I have a brokerage account but I don't use it for banking.
I am not a customer but I am a shareholder. If it really disturbs you that you have to use tellers, use ATMs or maybe look into seeing if you can mail M&T a check. Then if you want to do something in person, you have that option, something you will never get with one of these internet banks.
These are safeguards in place to protect depositors like you. I would have to assume that you would want the bank to refuse cashing a check that you have issued if someone was "double endorsing" or modifying. I'm no expert, but modifying someone else's check is probably check fraud.