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Fed Holds Rates Steady For Second Straight Meeting - Strategies for Savers
New November Savings Bonds Rates - I Bond Fixed Rate Rises to 1.30%Internet Banks and Living Without Paper Bank Documents
One concern people have with internet banks is the lack of paper documentation. When you open an account at a brick-and-mortar bank, you’ll likely receive a paper document showing that you have opened the account. When you make deposits at a local office, you’ll receive a paper receipt showing the deposit into your account.
With internet banks, you may not receive the paper documents that you’ve grown used to at brick-and-mortar banks. One reader commented about the new GE Capital Bank. The account opening process went well, but he was dismayed to learn that he won’t receive any paper proof of deposits. It is common for internet banks to provide no paper receipts for deposits. However, when accounts are opened, many internet banks do mail paper confirmation letters. I have received confirmation letters at both Ally Bank and Discover Bank showing my initial deposit, interest rate, account number and other account information. Once the account is opened, you typically won’t receive letters confirming deposits.
One method that I use to confirm deposits at internet banks is to record the confirmation numbers when I initiate transfers. Most all of my deposits are done by initiating a bank-to-bank ACH transfer. When you submit the ACH transfer request, the bank should provide a confirmation page with a confirmation number or transaction number. I record that number, the time and the amount of the transfer. This confirmation page can also be saved or printed out. If there are any mistakes, I can use that information to ensure the mistakes are fixed. I have never experienced mistakes or problems with ACH transfers so I’m not aware of potential complications. If you have experienced problems with ACH transfers, how did you resolve the problem? And how easy was it to get the problem resolved?
With internet banks, you can monitor accounts daily to ensure deposits and withdrawals are properly made, and to make sure there are no fraudulent withdrawals. Most internet banks allow you to set up notification alerts to email you when certain transactions take place or when your account balances reach certain levels. This makes it easy to closely monitor your bank account.
Many internet banks will mail you paper statements unless you choose to only receive electronic statements. I now prefer electronic statements over paper statements. Instead of printing them out and wasting ink and paper, I just save the e-statements to a USB flash drive.
Is the lack of paper documentation at internet banks a major issue for you? If you have accounts at internet banks, what methods do you use to ensure your accounts are free of mistakes and fraudulent transactions?
I've been banking online for over 20 yrs with a dozen assorted banks and have never had a bank request me to return the original paper CD in order to redeem at maturity. Which bank(s) are you referring to?
"Although banks no longer issue certificates when CDs are opened, some multi-year CDs on which certificates were issued, are still in existence. To close such an account you must provide the bank with the certificate you were given at account opening, and a valid form of ID. Technically, the bank cannot redeem the CD if you fail to produce the certificate. In reality, every bank has some kind of back-up records and the bank should allow you to close the account even if you have lost the certificate."
So I guess it is left up to the bank. Most banks I use want me to bring back at least a copy of the CD but only one insists on the Original. It is just a local bank so maybe it has it's own reasons for this.
My prior post was asking what bank(s) treat a CD certificate "as a bearer document" as stated by
poster #7?
Caution to anyone who uses U.S. Treasury Direct -- they are ruthlessly paper-free. They never send you any paper documents, not even a 1099-int. So you must take care to get that info from your account webpage on their website. And if you die, then your estate representative who files your tax return will need to know your account number and password to get into your webpage and find that info.
PS. I am not a lawyer.
> you when certain transactions take place . . .
>
What I would really like is a notification/alert when the rate
on my (eg., savings) account changes; I know of no bank providing
this. (Most seem to actually hide it!) Anybody aware of any
one providing rate change notification alerts?
You exposed the grand scheme to reduce the national debt. The banks will have all our bank accounts non-traceable and turn everything over to the treasury. No more national debt!
I am referring to deposit rates on Savings, Money market and
Checking accounts. Since they seemingly easily automate other
account notification changes, I would like to see immediate
notification when (one of the most important attributes
associated with the account) the rate changes.
I utilize Ken's most use useful DA rate alert system wherever
possible but it does lag 24/48 hours after a rate change. Also
not all financial institutions (eg. local banks) are tracked in
the DA alert system.
This seems such a basic and fundamental item of customer concern
and use, yet I know of no one that provides it!
It doesn't matter what kind of account you have. Unless you have all your funds in a fire-proof safe at home, drawing zero interest, they could press a button and do that at any time. Of course the financial world, as we know it, would end about 30 seconds later so there would be no point in doing that.
You stated: "I was surprised to learn from my DP's brokerage that I was not allowed to access his account unless he was sitting there actually typing in the password and with me".
Now how is the brokerage firm going to know if your DP was typing the password or you were?
Since you "always" abide by the broker's rules and since they can see the computer, you may need to have a durable Power of Attorney if you see the need.
Then why do you need to drag your DP from his "24 hour nap" if you have a POA? Let him rest.
The problem there was your sister not notifying children, heirs, siblings etc, where the password and pin combos to her accounts could be found in case of her sudden death. Most people make sure that the people they intend to leave their assets to are fully informed on where to find the relevant info. For people like your sister and others like her, not doing so is a problem.
Many firms have their own version of a POA and may not accept one from an Attorney. Many banks are the same way.
As a disclaimer, I am not an attorney, nor am I giving any legal advise. I'm just a person who said what I did.
#30 Did you miss the part in the post that said his sister had an "unexpected" death?. We have no idea how old she was and maybe it never occured to her she would be taken unexpectedly. It is hard enough to get seniors to take care of these matter much less younger people. His sister is a good example that you are never too young to take care of such matters for your family's sake.
"I now prefer electronic statements over paper statements. Instead of printing them out and wasting ink and paper, I just save the e-statements to a USB flash drive."
I would strongly advise that the data on any USB flash drive be backed up just like one would/should do with either an internal or external hard drive.
Over the past year or so I've had several USB flash drives cease to function, without any warning or gradual deterioration whatsoever. And unlike hard drives, where some or all the data on a failed drive may sometimes be recoverable, my understanding is that recovering data from a failed USB flash drive is just not possible/feasible.