IMAGINE a bank that would claim you bounced two checks when you have proof that the bank was clearly at fault. Imagine the same bank, in an effort to rectify its mistake, then closes your checking account without notifying you and erases any record of your years as a customer. Imagine this bank is Wachovia.
My experience this summer with Wachovia highlights problems with its customer service department, and it's difficult to believe that this is an isolated incident. Despite its strong presence in the southeast and its recent merger with First Union, Wachovia's customer service record simply is not up to par. The University made a wise decision in failing to renew its banking contract with Wachovia, and instead turning over banking services to Bank of America. Students should follow suit and switch their accounts to Bank of America sooner rather than later.
According to Steve Kimata, assistant vice-president for finance and University comptroller, the University's banking contract is put up for renewal every five years. For the past 10 years, Wachovia or one of its mergers has been in control of the University's banking services. Such services include everything from lock boxes and depository services to on-Grounds branch facilities and ATMs. Put simply, all money that comes in or out of the University runs through the bank under contract.
All procurements of goods and services at the University are bid out. A request for proposal gets posted as a public document so that anyone in the country may bid on the services, promoting open and fair competition. Based on the criteria for selection, this year Bank of America's proposal best suited the University's interests despite Wachovia's record of experience with the University.
Banking service's transition is scheduled to begin today. The turnover starts with an operational switch that deals primarily with administrative changes. Students will not notice an immediate impact on their personal banking services until after winter break. During the holiday, the Newcomb Hall branch and a number of on-Grounds ATMs will switch hands.
The numerical distribution of on-Grounds ATMs among different banking providers is still up for debate. According to Kimata, "Wachovia has expressed a strong desire to maintain a banking presence at the University." Considering that all banking services will soon be under the control of Bank of America, though, students would be better off getting out of Wachovia before the mad rush begins.
When it comes to college student banking options, both banks offer a number of services. Wachovia's College Access Checking account offers no minimum balance or monthly service fee, with unlimited check writing. The bank will charge you $2 for each teller-assisted transaction you make beyond your two free transactions each month. Bank of America's Student Checking account provides unlimited electronic access and no charge for the first order of 50 checks. The bank will charge you a monthly maintenance fee if you fail to keep a minimum daily balance of $500 in your checking account or $5,000 combined in your checking and linked accounts. And, Bank of America only allows one teller transaction each month, after which you'll be charged $3 per visit.
Although at first glance Bank of America's maintenance charges, which can run from anywhere between $4 and $7 per billing cycle, seem reason enough to stay with Wachovia, more factors need to be considered. Bank of America is the only bank with a coast-to-coast presence. With over 13,000 ATMs across the country bearing the Bank of America logo -- compared to only 4,900 between Wachovia and First Union, ATM transaction fees will be kept to a minimum. Students travel all the time. Summer internships place University students around the nation. Not everyone here is from Virginia or another Wachovia-friendly state. Wachovia is convenient if you are planning to stay in the southeast. Venture off the east coast or up north, though, and the situation gets tricky.
As Wachovia offers tips for college students looking for ways to manage their money, it explains on its Web site, "Avoid other banks' ATM charges: If you're paying $1 to $2 to use somebody else's ATM, the charges can really add up. Whenever possible, try to use Wachovia ATMs where you're never charged an ATM use fee to access your Wachovia accounts." Translation: Outside of home base, Wachovia doesn't really have that many ATMs. Your ATM charges will be significant if you're not careful. Better switch to Bank of America -- your chances of accruing ATM charges are lowered significantly, and you can keep track of your finances through more sophisticated online services.
Currently Kimata, Student Council and various student organizations are working on ways to effectively inform the student body about the banking switch. When students, especially first years and those living on Grounds, return after winter break, they'll notice the end result of the banking services transition. It is best to be prepared for the switch now rather than wait until the winter when everyone is leaving Wachovia for Bank of America. Avoid the hassle and the lines. Go ahead and change banks now. It'll make your life a whole lot easier.
(Stephanie Batten's column appears
Tuesdays in The Cavalier Daily. She can be reached at sbatten@cavalierdaily.com.)
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