SFNB bought by Centura Bank- an M&A we would live better without
Written: Jul 26 '01 (Updated Jul 26 '01)
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Product Rating:
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Pros: I am permitted to close my account.
Cons: They might charge me for early account closing. Lots of other fees. Poor interest.
The Bottom Line: Centura Bank is a traditional brick & mortar bank that swallowed SFNB and its spoiled customers. Their rates are the worst that I have ever seen.
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| ptiemann's Full Review: Centura Bank |
Centura Bank swallows these days SFNB (Security First Network Bank), since they were both in the family of RBC (“Royal Bank of Canada”). My SFNB “Interest Checking” account was automatically converted into a Centura “Web Premier Checking” account. Let me compare them a little and see how good this change is.
1) SFNB - background:
is the oldest internet bank. They opened already in 10/1995 the world's first fully transactional Internet bank.
Centura - background:
Centura claims on their web site to be one of the first banks in the country to offer online banking. Hmm. Maybe one of the first 250 banks in the USA. :-)
There can be only one “first”.
2) SFNB - presence:
SFNB was an “internet only” bank. SFNB reimbursed for ATM fees when I used another bank’s ATM (up to a limit).
Centura – presence:
By having that wonderful Centura checking account, I have “now access to a larger number of banking centers in the United States” (quote from their letter to me).
It’s just too bad that all those banking centers are in North Carolina, South Carolina and Virginia. That’ll be quite a trip from California.
If I use other bank’s ATMs and those banks charge me, then I do not get reimbursed by Centura.
Of course there is no such thing as a Centura ATM within 2900 miles (estimate) but I enjoy a little trip to save that $1.50 surcharge. And yes, Centura charges me $1.50 if I use any ATM in my area, in addition to the local bank's charges.
3) SFNB - Basic Fees
All accounts with SFNB were free. No minimum deposits required. No direct deposit required. Customer Service is free over a 800 number and very, very satisfying.
Centura – Basic Fees
My Web Premier Checking is $20 / month. Yes, twenty, that is not a typo. I guess I should no longer complain that my German bank charges me a Dollar (1 $US) now each month to compensate for the stamps that they need to mail me my monthly statement.
The twenty $ fee is waived if one maintains with a minimum balance of $2500 in the checking or combined balance of $10,000 across all accounts, but they are not talking about credit card balances here, he-he.
The unfair thing in my opinion is that people who carry $3000 constant balance (or higher) probably don’t have to worry about a pitiful $20 anyway. But if you’ve just lost your job and your balances are melting away, those $20 do not come handy.
4) SFNB – interest
“Interest Checking account”: 2.86% to 4% depending on balance.
Credit Card account: 9.9%.
Money Market Account: 4% - 5% depending on balance. Never a fee.
CD Account: 4.4% - 4.88%. Never a fee.
Centura – interest
Centura does not post their rates on the web. You have to call them. So much for being an internet bank.
“Web Premier Checking”: 0.33% interest
Credit Card: “prime rate + 7.9%” = 6.75% + 7.9% = 14.65%
Money Market Account: 1.1% (!) $5 fee for “balances under $1000”. Additionally $5 for excessive withdrawals.
Compare these numbers: my checking account goes from 2.86 down to 0.33.
My money market account goes from 5% to 1.1%
My credit card account gets closed, I have to re-apply for a new one and the APR goes (up) from 9.9% to 14.65%
5) SFNB – some other fees
Overdraft fee: there is none. Overdraft protection is free.
Bounced check: $25
Centura – some other fees
Overdraft fee: $5 (just to kick in!)
Bounced check: $30
I have the Centura booklet in my hand and it has all kinds of funny fees. E.g.
“Third request for personal identification code (password)” - $3.00
“Calling customer service and inquiring about my account” - $1
(for each inquiry, 4 inquiries are free each month)
I think that for $20 I should be allowed to make unlimited phone calls. I mean... if we are realistic, how many people are going to call their bank anyway? Right, so why do they have to charge those people who don’t like to use the web?
For your entertainment… they even have a “Dormant fee” (if there is no account activity in 12 months on your “Royal Embassy Checking”:
$1.50 / month.
Notes on Web Banking
SFNB offered a scan of written checks on the web. Centura does not.
SFNB offered web banking totally free for every one. At Centura, depending on your type of checking account, you will be charged $5.95 for web banking.
Conclusion:
The only good that I can say about Centura is that I am not forced to have my account there. I was told on the phone that they waive the service fees for the first 3 months. That’ll be enough time to move elsewhere.
Even the SFNB employees admitted to me on the phone that this M&A (merger/acquisition) is not good for the majority of SFNB customers. I didn't bother to ask for which specific customer it would make sense to stay with Centura, but there may be one out there.
Sadly, there's also a good chance that SFNB employees will be out of their jobs next month.
Recommended:
No
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Epinions.com ID:
ptiemann
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Member: Peter Tiemann
Location: Capitola, CA
Reviews written: 260
Trusted by: 2822 members
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