Is Key Bank a Good Bank for Your Financial Needs

Key Bank is a well-established financial institution with a long history of serving its customers. Founded in 1858, Key Bank has over 160 years of experience in providing financial services.

Their extensive network of branches and ATMs is one of their strongest assets, with over 1,000 locations across 15 states. This makes it easy for customers to access their accounts and conduct financial transactions.

Key Bank offers a wide range of financial products and services, including personal and business banking, investment services, and mortgage lending.

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Key Bank has its share of advantages and disadvantages.

The bank's strong online banking system is a significant pro, allowing customers to easily manage their accounts, pay bills, and transfer funds remotely.

One notable con is the bank's limited branch presence in certain areas, which may make it difficult for some customers to access in-person services.

Key Bank's mobile app is user-friendly and offers a range of features, including mobile deposit and account tracking, making banking on-the-go a breeze.

However, some customers have reported difficulties with the app's customer support, citing long wait times and unhelpful representatives.

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KeyBank's mobile app is a standout feature, with a rating of 4.7 stars on the App Store and 4.6 stars on Google Play. This indicates a high level of satisfaction among users.

You can access KeyBank's mobile app 24/7, making it convenient for customers to manage their accounts on their own schedule.

KeyBank offers multiple channels for customer support, including a 24/7 hotline at 1-800-KEY2YOU (539-2968) for general inquiries.

The bank's online and mobile banking assistance is available Monday through Friday from 7 a.m. to midnight ET and 8 a.m. to 9 p.m. ET on Saturday and Sunday, with a dedicated hotline at 1-800-539-1539.

For mortgage customer service, KeyBank has a separate hotline available Monday through Friday from 8:30 a.m. until 8 p.m. ET at 1-800-422-2442.

KeyBank also offers live chat via online banking, which is available Monday through Friday from 7 a.m. until midnight ET and from 8 a.m. to 9 p.m. ET on Saturday and Sunday.

Here's a summary of KeyBank's customer support channels:

KeyBank's business checking accounts have some notable drawbacks.

No sign-up bonus is offered, unlike some online banks that provide incentives for new customers.

Interest rates on KeyBank's business checking accounts are relatively low, especially when compared to online banks that offer higher APYs, such as Bluevine Business Checking and Kabbage Checking.

Transaction limits are in place, which may not be suitable for businesses with high transaction volumes.

Hefty overdraft charges can be assessed, with fees ranging from $38.50 to $28.50 per overdraft, depending on the circumstances.

Additional fees may apply, including $34 for stop payment requests, $3 per month for paper statements, and $30 for each outgoing domestic wire transfer (with some exceptions).

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KeyCorp's recent credit downgrade highlights the bank's struggles. S&P Global downgraded KeyCorp's credit rating from BBB+ to BBB, citing higher-for-longer interest rates as a major concern.

Higher interest rates are typically a good thing for bank stocks, as they can earn higher interest on their loans and widen their net interest margin. Rising interest rates last year led to a significant increase in net interest income for banks.

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However, the rapid rise in interest rates has put pressure on bank deposits. Customers are moving their cash into high-yield savings accounts or other investments that offer more attractive yields, such as certificates of deposit paying up to 5.5% interest.

This shift in customer behavior is likely to constrain KeyCorp's profitability more than its larger regional bank peers.

KeyBank's fees are relatively low, with no monthly service fee. This is a great perk for businesses that don't want to worry about extra charges.

Some banks charge a monthly fee, but you can waive it with a minimum balance. For example, Axos Bank waives the $15 monthly fee if you maintain a balance of $5,000 or more.

The minimum opening deposit requirement varies by bank, but KeyBank doesn't specify a minimum. In contrast, Axos Bank requires a $1,000 minimum deposit for their Basic Business Checking account.

KeyBank's website doesn't specify APY or interest rates, but other banks do. For example, Axos Bank offers 1.01% APY on balances up to $100,000.

KeyBank's business checking account offers a strong presence with over 1,000 brick-and-mortar branches across 15 states, making it ideal for business owners who prefer in-person banking.

In terms of fees, KeyBank's business checking account has no monthly service fee, which is a significant advantage over some other banks. However, wire transfers cost $25 per transfer, although this fee is waived for Diamond status customers.

If you're looking for a bank with a strong commitment to diversity and inclusion, KeyBank is a great choice. The bank has consistently won awards for its efforts, including the Human Rights Campaign's Best Places to Work for LGBTQ Equality and the National Organization on Disabilities' Leading Disability Employer Seal.

Here's a comparison of KeyBank's business checking account with some other banks:

Keep in mind that these fees and rates are subject to change and may not be comprehensive. It's always a good idea to check with the bank directly for the most up-to-date information.

PNC Bank has a long history of serving bank customers and their communities.

Its Virtual Wallet product makes PNC a good choice for customers who need an uncomplicated way to manage their budgets.

PNC's preferred checking account is the only one you can open online.

KeyBank's selection of checking accounts makes it a far less restrictive choice.

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Wells Fargo is one of America's "Big Four" banks, offering a wide range of account types. It has over 5,600 branch locations throughout the U.S., which is a significant advantage for those who prefer to bank in person.

However, this also means that Wells Fargo may not be the best choice for customers who live in one of the 16 states served by KeyBank, as they may find more convenient branch locations with KeyBank.

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U.S. Bank is a significantly larger bank than KeyBank, ranking as America's fifth-largest bank. It has a more extensive national presence, covering individuals who don't live in the states KeyBank serves.

U.S. Bank's mobile app is advanced, offering a wide range of services to its users.

KeyCorp's Recovery Plan is looking up. The bank is well-positioned to improve its margins and balance sheet.

Over the next year, some of its lower-yielding assets will mature and be reinvested at higher interest, which could benefit its net interest income by over $900 million on an annualized basis by 2025.

One factor that's working in KeyCorp's favor is its credit quality. The bank has reduced its exposure to office property loans to less than 1% of its total loans.

Its net charge-offs of 0.17% in the second quarter are also significantly lower than the industry average of 0.46%. This suggests that KeyCorp is managing its risk effectively.

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KeyBank's financial details are a crucial aspect of determining whether it's a good bank. According to the provided data, KeyBank National Association had a Texas Ratio of 5.74% as of September 30, 2024, which is higher than the U.S. Bank Average of 4.62%. This indicates that KeyBank may not have sufficient capital and reserves to absorb its loan losses.

The bank's Return on Equity (ROE) is 2.79%, which is lower than the BestCashCow average of 10.02%. This suggests that KeyBank may not be as efficient in making money from its capital as other banks. However, its Capitalization is 8.73%, which is higher than the BestCashCow average of 11.29%. This indicates that KeyBank has a more secure balance sheet.

Here's a comparison of KeyBank's financial metrics with the U.S. Bank Average:

These metrics provide a snapshot of KeyBank's financial health, but it's essential to consider other factors when evaluating the bank's overall performance.

KeyBank National Association's balance sheet is a snapshot of its financial health. As of September 30, 2024, the bank had $170.87 billion in total assets.

The bank's assets are comprised of various categories, including cash and balances due from depository institutions, interest-bearing balances, total securities, and net loans and leases. KeyBank had $24.05 billion in cash and balances due from depository institutions, $22.77 billion in interest-bearing balances, and $41.88 billion in total securities.

The bank's net loans and leases stood at $105.17 billion, with a loan loss allowance of $1,507.39 million. Trading account assets were $211.30 million, and other real estate owned was $17.36 million. Goodwill and other intangibles were $3.22 billion, and all other assets were $10.47 billion.

The bank's liabilities totaled $170.87 billion, with $154.89 billion in total deposits. Interest-bearing deposits were $124.53 billion, and deposits held in domestic offices were $154.89 billion. The bank also had $43.91 million in federal funds purchased and repurchase agreements, $832.89 million in trading liabilities, and $13.16 billion in other borrowed funds.

Here is a breakdown of KeyBank's assets and liabilities:

The bank's liabilities are also broken down into various categories, including total deposits, interest-bearing deposits, and other borrowed funds.

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Money Market accounts are a great option for those who need to make occasional payments or write checks. They often offer competitive interest rates, and the Key Select Money Market account is no exception.

To open a Key Select Money Market account, you'll need to deposit at least $5,000. This account offers a daily compounding interest rate, which means you'll earn more interest over time.

One potential drawback is the $20 monthly fee, although it can be waived if you meet certain requirements. This fee is a common feature of many Money Market accounts.

Here are some key benefits of the Key Select Money Market account:

However, it's worth noting that this account has a high minimum opening deposit and balance requirements, which may not be suitable for everyone. Additionally, the standard interest rates may be lower compared to some competitors.