Newsletter

New fees cause customers to leave large banks

Poor service combined with fee increases are driving customers away from the big banks, resulting in significant gains for smaller, independent community banks. In 2011,according to J.D. Power and Associates, large, regional, and midsize banks saw 10 to 11.3 percent of their customers defect.

This is good news for smaller banks like the Bank of Holland. Small institutions saw increases in customers of 10.3 percent, up from 8.1 percent the previous year.

Customers who are already dissatisfied with the service they receive are likely to make a switch when a bank raises fees. Recently, the Wall St. Journal reported that Bank of America has announced a plan to charge $6 to $9 a month for one of its basic checking accounts, and has plans for even higher fees on some of their other accounts.

For almost 120 years, we have prided ourselves on the personal, efficient service our customers know so well. While most banking customers today have direct deposits and withdrawals that might cause them to hesitate to change banks, we can assure you we'll help make moving accounts to Bank of Holland as easy as possible.

The bottom line is cost and service. Why pay more for less? Our bank offers very attractive checking account products, even paying an appealing interest rate on our Advantage Plus accounts. If you, or someone you know is considering changing banks, talk to us. We'll do all we can to make the switch easy -- and we're not going to nickel and dime our customers to death with fees.

Mark L. Luderman, President

Is your checking account the right fit?

by Peter Ertl, branch manager, East Aurora

The main reason people use banks is to have checking accounts. But checking accounts offer a lot of optional benefits that customers should carefully sort through to make sure they get the right checking account for them. Many large banks are now incorporating more fees -- so the wrong checking account could cost you a lot.

Know your checking habits. Review your bank statements. How many checks do you write each month? What is the ending balance on the statements? Do you bounce checks and need overdraft protection? Are ATM fees killing you?

Free checking accounts can come with a lot of requirements. The definition of true free checking is: no monthly service charges or per-item fees regardless of balance. Often, however, banks require a minimum balance, direct deposit of paychecks, or want to eliminate services. The fees begin when your balance dips, or you need a copy of that check you wrote to the dentist.

ATM fees are a big concern. No one wants to pay a fee for using their debit card at an ATM that is not located at their personal bank. That's why Bank of Holland's debit cards are part of a huge network that allows free access to ATM s all over the county and our Advantage Plus Checking refunds out-of-network fees.*

Interest-bearing checking accounts at many banks require a large minimum balance, but at Bank of Holland, we offer an attractive rate with no minimum balance when you meet certain direct deposit/debit requirements.* The majority of customers easily meet these requirements in their usual monthly use of their checking account.

I'd recommend anyone starting a new checking account or thinking about making a change in an existing account do a simple spreadsheet comparison of minimum requirements, any check writing limitations, ATM access fees, and benefits such as interest before deciding which account really fits. Be sure to include the Bank of Holland's Advantage Plus Checking, which now offers an attractive interest rate, nominimum balance, and refunds on ATM fees nationwide. I'm confident we'll come out looking pretty good!

Good things come in `3s'

By Debbie Stemper, Operations Officer

Online banking has opened a whole new world for managing finances. It's fast, user-friendly and secure. Just be sure when you go on a site to handle a financial transaction, the url in your browser says, "https:" -- it's the "s" that means the site is secure. Then enjoy these advantages:

1. Pay your bills online: Eliminate the need for stamps and envelopes, or worry about slow mail service or a check getting lost in the mail. Set up the companies you pay every month on our web site, and simply choose that company to pay its bill each month.

2. Check cleared? It's at your fingertips: Access your account from anywhere to view your current and past statements. Transactions are updated daily. Get the amount of a transaction when you've lost the receipt -- or just check your account to make sure there haven't been any unauthorized withdrawals. If there's any issues, you can solve them more quickly by checking your account online.

3. Need to transfer some funds? Hopefully it's because you have money left over at the end of the month that you want to put in your savings. But maybe you overspent on your vacation and you have to put money in checking to cover an expense. First, wherever you are in the world, you can access your account. Second, you can cover that shortage with a few keystrokes.

Savings accounts: Not just for rainy days

Too often we pay our bills and forget to pay ourselves by putting money into savings. One of the first rules of budgeting is to save for emergencies, but that's not the only reason you need a savings account.

"In addition to saving for unexpected expenses such as a vehicle breakdown or even a job loss, you also need to save for annual, semi-annual and quarterly expenses," said Linda V. Moore, Branch Manager, Holland. "You may pay property taxes once a year, or make quarterly payments for car insurance. Instead of taking the whole sum out of one month's income, save 1/12th of the total each month. That way you won't have any months when money is short."

There are three main criteria to consider for a savings account: stability, accessibility, and interest income. With large banks failing, making sure your bank has FDIC insurance ensures stability. And with the Internet, accessibility is not a concern even if, like the Bank of Holland, your bank only has one or two branches.

"This savings account is for emergencies after all, so you do need easy access," Moore said. "In an emergency you should be able to transfer online from a savings to a checking account which can be accessed with a debit card."

Bank of Holland's debit cards are part of a large ATM network, and we offer the Advantage Plus Checking account that refunds ATM fees.* Bank of Holland also offers a savings account with an attractive interest rate.

"Compared to inflation, you may not think you are gaining a lot, but remember a savings account paying a decent interest rate is balanced against inflation. You can't get that by stuffing your money under your mattress," Moore said. "And over time, the interest compounds so it does add up."

And, back to the question of paying yourself first -- let the bank look after that. Set up an automatic transfer from checking to savings. Never get caught short -- in an emergency or for covering recurring quarterly, semi-quarterly or annual, expenses.

* Must have a combination of 12 direct deposits/withdrawals and debit card

Events Calendar

Arcade Area Chamber Community Trade Fair

Saturday, April 21st ~ 9 am to 5 pm

Sunday, April 22nd ~ 10 am to 3 pm

Tractor Supply Plaza, Route 39, Arcade, NY 14009

585-492-2114

Holland Tulip Festival • May 11, 2012

Holland, NY ~ 716-537-2509

Annual 5K Tulip Fun Run/Walk • May 12, 2012

Registration 8 am ~ For more information – 537-2264 or go

to www.bankofhollandny.com & download race application

East Aurora Kiwanis Chicken Barbecue • June 6, 2012

Hamlin Park, East Aurora ~ call 716-652-8444

Greater East Aurora Chamber

& East Aurora Kiwanis Golf Outing • June 11, 2012

Holland Hills Country Club ~ 716-652-8444