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New Alliance Bank

Reviewing: New Alliance Bank Various Branch's  |  Rating:
By joey on
Badge: Publisher | Level: 12 | Finances Expertise:

When it comes to investing in mutual funds & stocks this review is just another example of where it is by far a better bet to invest directly with solid mutual fund families such as T.R.Price and Vanguard.

After examining the funds that this bank likes to offer to its customers I have easily figured that I have no interest in paying a 5.75% load for the funds nor the 12B-1 advertising fee which tacks on another 1/4 % for a grand total of 6%!

This means a customer coming with say $10, 000.00 is only going to see $9, 400.00 in their account because $600.00 gets eaten up by their fees. As a matter of comparison the whole $10, 000.00 would have gone into the investors account at T.Rowe Price or Vanguard.

I also have a friend that became so disgusted with his experience at this bank that he transferred his entire retirement account to Vanguard and T.R.Price. When he became concerned about the commissions and fees that the bank was charging him someone there replied to him that it was only a retirement account. My friend was also not too pleased with the performance of some of the funds that were chosen for him as well.

Unfortunately when there are commissions involved quite often the advisors at the bank do not want the customer to buy a no load fund as the bank gets very little money out of such a trade. My friend was even told that he had too many no load funds in his account and they would have to start charging him an extra quarterly fee.

Banks also enjoy selling folks annuities. This is another commission/fee machine for the banks. Many times the investment return on these can be beaten easily with much better choices. In my opinion this can create a conflict of interest. Sometimes this does not work out well for the customer. The stock market in general has been a rough place to invest for sometime now and I would have no interest in being down 6% from the get go in this economic enviroment.