update 2005: North Fork Bank has acquired Greenpoint Bank.

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GreenPoint Bank is your ordinary bricks and mortar bank based in New York City offering various banking products, mortgages, and loans. Originally serving Queens and Brooklyn, in the 1990's it expanded aggressively into Manhattan taking over branches of the then ailing Home Savings Bank of America. After that, GreenPoint bank just suffered.

GreenPoint Bank offers three checking options for home and personal use. The Basic, the Premium, and Convenience Checking. Basic Checking requires $25.00 to open, and charges $3.00 a month to maintain. No interest is earned, and you are charged regardless of what you have in the account. Premium Checking is no better. It requires a $2000 daily average balance to avoid monthly charges, and earns interest only when there is more than $500 in the account (of course, account holders will have to keep the $2000 balance requirement in mind). The Convenience Checking is the better account of the three. To avoid a monthly service charge, it requires a $1500 daily average balance to avoid charges, or have Direct Deposit of a government check tied into the account. This account does not accrue interest.

Like all checking accounts, you can have a passbook option, or statement option. By law, passbook savings do not have ATM access. Statement option is best because you can receive both your checking account and savings account (if you have one) in one statement, called OnePoint statement.

Greenpoint offers three types of savings accounts not including CDs, the Basic, Liquid Asset, and Premium. Basic requires $300 to open, and $500 to avoid a service charge. Liquid Asset is basically the money market option, it requires $2500 to open and $2500 average daily balance to avoid a fee. Premium requires $25000 to open and $25000 daily average balance to avoid fees. $25000 is a big sum, letting it languish in a savings account accruing low interest is as good as throwing your money away. Theoretically, if you invest at an interest rate below the rate of inflation, it means that you are losing money. It is best you invest it, or park it somewhere with higher interest rates.

As a matter of convenience, GreenPoint offers telephone banking, and only recently (in March 2001) online banking. Online banking does the same things telephone banking does; check balances, transfer funds between accounts, check history. Online banking also offers BillPay, but it costs $4.95 a month to use; best use an Internet bank for BillPay because most offer it for free. Credit cards are also offered by GreenPoint, but provided through First USA [ insert invective against first usa here ].

When GreenPoint took over Home Savings Bank of America, most if its branches were housed in big, spacious historical bank buildings (The Bowery Savings Bank building), the historic bank building across from Grand Central. The bank has since downsized some of its locations, moving into newer, and smaller branches right next to the historical spaces, and selling off those old buildings. All of the rent they have paid and construction must have contributed to the low savings rates offered by GreenPoint Bank. The savings rate is not really competitive, and they sock you with high service charges when you are not looking. However, if you are smart enough, you can avoid the service charges.

The best option for anyone saving money is through Money Fund accounts offered by brokers and other financial institutions. Money Funds are not FDIC guaranteed, but have a terrific track record of safety making it is a very good option. Beware of any that may hold less than quality bonds and paper. Alternatively, you may find an online bank (FDIC guaranteed), and those that have CDs if you are willing to park your money. Online banks do not have to pay exorbitant rents to maintain historic buildings. Newer online banks like ING Direct (see my review of ING Direct at http://www.epinions.com/content_6747557508) offer better savings rates, and you can still get at your money through an ATM.

Personally, traditional banks are useful because of convenience. However finding one to combine all your banking needs, get free checking, other options, and without parking too much of your money is difficult, but it can be done.


Recommended: Yes