Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
You know what would show a little class? If T. Rowe Price would let me keep the 47 cents they deposited into my bank account for verification instead of taking it all back.
I feel your very small abandonment. My institiution does two small transactions...imagine how upset I feel. But, back to your situation.
Unfortunately, here at Federated Valley Local National Bank we take these small deposits very seriously. We hope that you find that our $2.50 transcation fee on your 47 cent deposit is well worth the service costs that we extend to you, our loyal customer.
By the way, when the 47 cent was debited away from your account by T Rowe Price it created a negative balance on your account which we also take very serously.
Please consider the $29 negative balance fee just a way of us saying we are looking out for you and keeping our eye on you.
Suck-holes. I once paid a fee to stop a check. But it went through. And they still charged me the fee. Ya know how long I kept my account there, after that? Spooge-mops, they are.
I use Schwab as my sole bank, for checks, cash, everything. They're not as cheap as Vanguard but I've been really happy with their service on the banking side of things and their fees have always been clearly stated--no surprises anad no pettiness, at least in my experience.
Hi expatsp. I used to have Schwab for checking. I liked that they reimbursed the ATM fee. I also used them for Visa. But then they dropped the Visa program. And, they never instituted the ability to electronically transfer between the checking and line-of-credit or other accounts at Schwab. Have they done that yet? Except for that, I liked their checking account service.
Hi Charles, I don't have a separate checking account with them, I just have checks that draw on the money market fund in my brokerage account. A few years ago they tried to get me to migrate my cash to a separate checking account with Schwab Bank, promising a slightly higher interest rate on my balance, but I declined, so I haven't had the problem you refer to. I'm not sure if the set-up I have is still available, I signed up for it in 2006 or so, perhaps now they force everyone into a separate checking account with Schwab Bank.
Yes, reimbursing the ATM fees is great, especially for me, since I am outside the U.S. most of the year and they even reimburse the fees on foreign ATM withdrawals.
@Charles- Good morning. Yes, apparently inter-account transfers have been available for a few years now, because that's been the setup since we opened our account about three years ago. The transfer arrangement is very simple: to make a purchase in the trading account I request a transfer from the checking account: that takes place almost immediately. Then I can place the purchase orders in the trading account, which for mutual funds of course is effective at the end of the trading day.
It's a very straightforward setup:
1) Select from a list which account the transfer is to come from: Checking, Trading, or external (other banks. etc)
2) Second, the same list, showing the accounts the transfer is to go to: again, Checking, Trading, or external, other non-Schwab bank accounts.
We don't have a savings account at Schwab, but I imagine that could be added as well.
A no-fee ATM card comes with the checking account.
I moved my cash out of the discount brokerage accounts because they weren't paying interest, and have been very happy with an online only FDIC insured bank. You can get 0.87% to 0.95% interest with good online only savings accounts, and easily transfer money back and forth from the discount brokerage account as needed. Should have done this years ago. Only takes a couple minutes online to arrange for the automated clearing house transfer, for which there is no charge.
Last time I checked Hawaii, Alaska, Utah, Colorado, Montana, South Dakota, North Dakota, Minnesota, Nebraska, Louisiana, Mississippi, Alabama, Indiana, Ohio, Vermont & Wyoming where part of America...funny BofA doesn't think so...wish they would rename themselve B(of parts of)A or better yet hire Old_Joe to straighten things out.
Where have you been since 2008? Try Googling BofA and "Fraud". Here's just a quick few...
"Jury: BofA liable for Countrywide mortgage fraud. Bank of America was found liable for fraud Wednesday for a program dubbed "the Hustle" that caused millions in losses to federally backed mortgage finance firms Fannie Mae and Freddie Mac."
"Bank of America whistle-blowers detail horrid schemes to fleece borrowers, reward foreclosures"
"A U.S. government lawsuit accusing Bank of America Corp of fraud in the sale of billions of dollars of toxic mortgage loans to Fannie Mae..."
"After nearly two years of disputes with Bank of America, Afghanistan war veteran, John McDevitt will be refunded $25,000 in fraudulent debit charges, ..."
"Bank of America Corp. is impeding an investigation of its loan modification practices by negotiating settlements with borrowers who must agree to keep them secret and not criticize the bank in exchange for cash payments and loan relief, Arizona officials say."
"Bank of America is the most-complained-about company when it comes to mortgages, garnering more than 15,000 complaints on issues such as loan modifications and servicing since late 2011, according to information released this week from a federal database of consumer complaints."
I manage my mom's finances and she has been a BofA account holder for a very long time. Last August she was charged an account maintenance fee. She had met all the requirements prior to August, but because her VA direct deposit was smaller than $250 she didn't make it over this new direct deposit hurdle. No one at any of the branches we visited was willing to "grandmother" her account. All their suggestions moved us closer to the door rather than the vault.
Of course I could have increased her daily balance by moving her few remaining assets from a productive institution to BOA, but instead I found her a local credit union that treats her small monthly balance like it was a fortune. Her Credit Union has no fees, a nationwide affiliation to other member credit union and no ATM fees when withdrawing from her productive institution account.
As a disclosure, I own BofA in my FAIRX fund. From my personally dealing, I would not own this stock individually.
Bottom line: If BofA chooses to "risk away" interest free money (account deposits) by charging monthly fees...especially at the expense of the financially vulnerable elderly...her money walks!
By the way, her 8 kids are worth millions...just not with BofA or ML.
My Visa card is with a local Credit Union. Wife's paycheck is Direct-dep. into another credit union with an office right inside the hospital. Other money is in yet another local Credit Union, and we have kept an account some distance away in The Berkshires at a small regional bank which serves only that region: The Berkshires of western Massachusetts. We have some monthly money which gets direct-deposited there, too. The Big Dogs--- more accurately, the Financial Predators--- can go pound sand. ATM? Ya, but we use it rarely, and never out-of-town. PLANNING ahead works rather well!
Big Money doesn't need a reason. They just take. With government snuggling into Big Money's lap, loving the way Big Money rubs under its chin, in that special way.
"I think it's to prevent abuse by those trying to make money by this process."
Evidently I'm not seeing something here. How exactly would someone abuse this process? I suppose they could open up a hundred different accounts... that would net them almost $50.00 I guess. Seems like a lot of work for not much return, though.
I'm sorry but I don't understand the beef. They put money in they took money out. What has class got anything to do with it?
This one might fall under the category of "If you have to ask you'll never know."
Nevertheless I will try to explain as best I can. (And it's not a beef, just an observation.)
When a deposit or withdraw is made from a bank account, there needs to be a reason.
The reason for the small deposits was so that I could verify the amounts to show that I did in fact have access to the account.
What was the reason for the withdraw?
Best I can do.
The reason is AUTOMATION. They want to make sure they can make transactions between their backend systems and your bank account both ways. So people do not panic, they FIRST deposit and THEN withdraw. If they would have done it the other way round they could get into trouble. Say someone would sue them saying "you cost me interest on 47 cents"
Really you shouldn't spend so much time and energy thinking about it. I'm sure compliance requirements require them to do what they did. This is just not about TRP, Vanguard, Scottrade, Schwab all do the same thing. My 2 cents, you should find something else to worry about.
Comments
Unfortunately, here at Federated Valley Local National Bank we take these small deposits very seriously. We hope that you find that our $2.50 transcation fee on your 47 cent deposit is well worth the service costs that we extend to you, our loyal customer.
By the way, when the 47 cent was debited away from your account by T Rowe Price it created a negative balance on your account which we also take very serously.
Please consider the $29 negative balance fee just a way of us saying we are looking out for you and keeping our eye on you.
Have a sparkling day!
I don't have a separate checking account with them, I just have checks that draw on the money market fund in my brokerage account. A few years ago they tried to get me to migrate my cash to a separate checking account with Schwab Bank, promising a slightly higher interest rate on my balance, but I declined, so I haven't had the problem you refer to. I'm not sure if the set-up I have is still available, I signed up for it in 2006 or so, perhaps now they force everyone into a separate checking account with Schwab Bank.
Yes, reimbursing the ATM fees is great, especially for me, since I am outside the U.S. most of the year and they even reimburse the fees on foreign ATM withdrawals.
It's a very straightforward setup:
1) Select from a list which account the transfer is to come from: Checking, Trading, or external (other banks. etc)
2) Second, the same list, showing the accounts the transfer is to go to: again, Checking, Trading, or external, other non-Schwab bank accounts.
We don't have a savings account at Schwab, but I imagine that could be added as well.
A no-fee ATM card comes with the checking account.
"Jury: BofA liable for Countrywide mortgage fraud. Bank of America was found liable for fraud Wednesday for a program dubbed "the Hustle" that caused millions in losses to federally backed mortgage finance firms Fannie Mae and Freddie Mac."
"Bank of America whistle-blowers detail horrid schemes to fleece borrowers, reward foreclosures"
"A U.S. government lawsuit accusing Bank of America Corp of fraud in the sale of billions of dollars of toxic mortgage loans to Fannie Mae..."
"After nearly two years of disputes with Bank of America, Afghanistan war veteran, John McDevitt will be refunded $25,000 in fraudulent debit charges, ..."
"Bank of America Corp. is impeding an investigation of its loan modification practices by negotiating settlements with borrowers who must agree to keep them secret and not criticize the bank in exchange for cash payments and loan relief, Arizona officials say."
"Bank of America is the most-complained-about company when it comes to mortgages, garnering more than 15,000 complaints on issues such as loan modifications and servicing since late 2011, according to information released this week from a federal database of consumer complaints."
I manage my mom's finances and she has been a BofA account holder for a very long time. Last August she was charged an account maintenance fee. She had met all the requirements prior to August, but because her VA direct deposit was smaller than $250 she didn't make it over this new direct deposit hurdle. No one at any of the branches we visited was willing to "grandmother" her account. All their suggestions moved us closer to the door rather than the vault.
Of course I could have increased her daily balance by moving her few remaining assets from a productive institution to BOA, but instead I found her a local credit union that treats her small monthly balance like it was a fortune. Her Credit Union has no fees, a nationwide affiliation to other member credit union and no ATM fees when withdrawing from her productive institution account.
As a disclosure, I own BofA in my FAIRX fund. From my personally dealing, I would not own this stock individually.
Bottom line: If BofA chooses to "risk away" interest free money (account deposits) by charging monthly fees...especially at the expense of the financially vulnerable elderly...her money walks!
By the way, her 8 kids are worth millions...just not with BofA or ML.
Nevertheless I will try to explain as best I can. (And it's not a beef, just an observation.)
When a deposit or withdraw is made from a bank account, there needs to be a reason.
The reason for the small deposits was so that I could verify the amounts to show that I did in fact have access to the account.
What was the reason for the withdraw?
Best I can do.
Evidently I'm not seeing something here. How exactly would someone abuse this process? I suppose they could open up a hundred different accounts... that would net them almost $50.00 I guess. Seems like a lot of work for not much return, though.
Really you shouldn't spend so much time and energy thinking about it. I'm sure compliance requirements require them to do what they did. This is just not about TRP, Vanguard, Scottrade, Schwab all do the same thing. My 2 cents, you should find something else to worry about.