CIT Bank CDs With Rising Rate Protection (Rate Hike Update)

Update: CIT Bank actually raised its rates on some of their CDs with a raise-your-rate feature. Rates updated in review below.

As a follow-up to my cash reserves post, I wanted to note that CIT Bank also has some very competitive rates on FDIC-insured CDs with added flexibility that makes them unique. They have a very simple website and appear to be focused on certificates of deposit, although they recently debuted a savings account with a 1.05% APY interest rate on balances above 25k.

Their Achiever CD has a current rate of 1.10% APY for 1-year term and 1.25% APY for the 2-year term with a $25,000 minimum opening deposit. The first unique feature is a “rate bump” option that allows to you raise your rate again in the future if the rate increases. The second unique feature is that you can add more money to your CD one time at any point you choose throughout the term.

You buy CDs to guarantee your rate won’t drop during the term. But these two features allow you added protection from rising rates in the future, and you already start with a competitive rate. You could match future rates, and move your other money over to match those rates as well. The primary limitation would be the higher minimum deposit requirement. Interest is compounded daily.

If you don’t have the $25,000 minimum, they also have their term CDs with a $1,000 minimum opening deposit. Those are paying 1.06% APY for 1-year term, 1.20% APY for 2-year, and 1.42% APY for 3-year. Those are nearly as good as the Achiever CD, but they don’t have the rate-bump and add-on features of the Achiever CD. The early withdrawal penalty is 3 months of interest for the 1-year CD, 6 months interest for the 2-year CD. A quick comparison table:

Posted in Banking, Deals & Offers | 12 Comments »

Prosper vs. LendingClub: Credit Card Debt Consolidation Loan Comparison

What is the best place to lower your interest rates and consolidate credit card debt in order to pay it all off? The first thing to try is to call up your credit card company and negotiate your existing rate down. If that isn’t satisfactory, you could switch issuers and do a balance transfer to a new card with a low introductory rate. If you have qualifying credit, you can take advantage of no fee 0% APR balance transfer offers for up to 15 months.

I would say the next option to consider is P2P lending, which in my experience has lower rates than personal unsecured loans from banks. P2P is gradually becoming an accepted source of loans as shown by announcements of new institutional money coming in from hedge funds. Prosper has been around since 2006 and has done over $300 million in loan volume since inception, and LendingClub has been around since 2007 with over $500 million in loans. Both are now registered with the SEC.

Prosper vs. LendingClub Similarities

1. Unsecured loans. Such loans are backed only by the borrower’s promise. If there is a default, the lender can’t repossess any property or garnish wages. The primary deterrent to defaults is a poor credit score that will increase future borrowing costs and potentially other side effects including affecting employment.

   Alternatively, you may be considering paying off your credit card debt with a home equity loan. This would change your unsecured debt into a secured debt. The danger is now if you don’t pay off that loan, you could lose your house. If that added risk doesn’t make a difference to you, then a home equity loan or line of credit will probably offer you a lower rate.

2. Flexible amounts. You can borrow more or less than your actual outstanding credit card balance, and you’re usually given a choice of amounts for the same interest rate. But remember, the purpose of consolidation is to help speed up the process of getting rid of that debt.
3. Fixed rates over the entire term. The problem with credit cards is that the rates are often unpredictable. “Variable” rates are linked to a benchmark rate, but even “fixed” rates that aren’t guaranteed for X months can just mean they’re fixed until you get a notice that they are now “fixed” at a new, higher number. Given the current low interest rate environment, you should be wary of rising rates.
4. No prepayment penalties. You can pay off your loan early at any time, with no fees.
5. No application fee. There is no fee to apply for a loan. If your loan successfully funds and you get the cash, then you will be subject to an origination fee that is rolled into your monthly payments.

Prosper vs. LendingClub Differences

1. Minimum credit scores. Prosper minimum stated credit score is 640, LendingClub minimum FICO score is 660.
2. Maximum loan amounts. Prosper maximum loan amount is $25,000, LendingClub maximum loan amount is now $35,000. Both lower the limits depending on credit profile.
3. Slightly different fee structures. Both companies charge an origination (closing) fee once you successfully get your loan. If you don’t get the loan, no fees. They have slightly different fees schedule, but both have origination fees ranging from about 1% to 5% for the majority of loans. Both charge $15 fees for late payments or failed payments.
4. Different loan term lengths. Depending on your requested loan amount and other factors, each lender may offer different terms. For example, LendingClub told me that loan amounts from $1,000 to $15,975 are only available with a 36-month term, even though they do offer 1-year and 5-year loans in other cases. However, with a $10,000 loan at Prosper I was given the choice of 1, 3, or 5-year terms. In general, the longer the term, the higher the interest rate.
5. Check processing fees. LendingClub charges a $15 processing fee per payment made by check. Prosper does not. Both companies allow you to make payments via automatic ACH withdrawal from a checking account with no fees.

Prosper vs. LendingClub Interest Rates?

Their full criteria for determining what rate you’ll pay is not disclosed but is based on a number of factors. Really, the best way to see which one will give you the best deal is to ask each one for a free quote. In both cases, getting a rate quote will involve looking at your credit report, but it will not result in a credit inquiry and will not hurt your credit score. If you do decide to move forward and get the loan, only then it will show up on your credit report.

• Request a free rate quote from LendingClub.
• Request a free rate quote from Prosper.

My experience. I applied for a $10,000 debt consolidation loan at both places. I was offered a 1-year loan at 8.17%, a 3-year loan at 7.49%, or a 5-year loan at 10.85% annual interest rates at Prosper. I was offered a 3-year loan at LendingClub at 6.62% interest rate. For a $10,000 loan over 3-years and including all fees, my LendingClub payment was $307 per month and Prosper payment was $311 per month. So even though the interest rates seem rather different, the final monthly payments ended up closer than expected (though still a $150 difference in total payments over the whole 3 years).

Posted in Banking, Credit Cards | 2 Comments »

SunTrust Bank & Delta Check Card – 30,000 Bonus Miles Promotion

SunTrust Bank is offering 30,000 Delta Skymiles for opening a new checking account by 6/30 with qualifying direct deposit and choosing the Delta SkyMiles World Check Card. Available in AL, AR, FL, GA, MD, MS, NC, SC, TN, WV, VA and Washington, D.C. The debit card does have a $75 annual fee but do you get 1 mile per $1 spent (for those that avoid credit cards). However, you don’t get the free checked bags or Priority Boarding of the Delta American Express credit card.

Still it’s not a bad deal, $75 for 30k miles if you live near a SunTrust branch. Some of the text suggests that you can get 15k of those miles with just the new checking account and no debit card, but it’s not entirely clear. Direct deposit must be $100 or more. The “Balanced Banking” checking account option has a $12 monthly fee, waived with a $3,000 minimum balance across Suntrust accounts. Selected fine print below:

Read the rest of this entry…

Posted in Banking, Deals & Offers | 1 Comment »

Chase Exclusives: 10% Extra Cash Back on Chase Freedom, 1% Cash Back on Chase Mortgage Payments

Chase Exclusives is a program that encourages you to open a Chase checking account whenever you have any other relationship with Chase. I closed my Chase (formerly WaMu) account a while back after they slowly started making it harder to keep as a secondary account, but some of these perks actually seem pretty good. I remember hearing something about them, but never actually took a good look at the details until now.

10% Extra Cash Back + 10 cents per purchase on Chase Freedom
The Chase Freedom Visa card is a popular cash back card that features 5% cash back on rotating categories and 1% back on everything else. This quarter you’ll get 5% back on all purchases at grocery stores (up to $75 cash back a quarter based on $1,500 in purchases). Check out my page on 5% cash back credit cards for more info.

However, if you have a Chase checking account, they will add an additional 10 points + 1 extra point for every $10 in purchases. Since 100 points is worth $1, that’s basically saying every purchase on the Chase Freedom earns 10 cents plus 1.10% cash back and every 5% category purchase earns 10 cents plus 5.1% cash back. For someone like me that puts everything on their credit card for easy expense tracking, that can add up especially with smaller purchases.

Currently, the Chase Freedom has a promotion offering $100 bonus cashback if you sign up and make just $500 in purchases in your first three months.

1% Mortgage Cash Back program
If you have both a Chase checking account and a Chase mortgage, you can earn 1% cash back on your mortgage payments (principal + interest). You have to have the checking account open before the mortgage closing, and enroll in automatic payments from said account within 60 days of closing. If you take the option of having your 1% cash back applied towards your loan principal, that works out to shortening a 30-year fixed mortgage by 9 months if you stick with it. (They really should make this an option on other mortgages, paying just 1% extra instead.)

I don’t know how good Chase mortgage rates are, but I’d probably get a quote now from Chase just to see if they are competitive. Overall though, it would probably be better to just get a better interest rate and pay extra towards your principal as if you had a higher mortgage (takes discipline).

$150 New account opening bonus
Thinking about opening a new account? You can also get a $150 bonus through this link if you open a Chase Total Checking account with $100 and set up direct deposit (new customers only). To avoid monthly service fees, you must do any one of the following each statement period:

1. Have monthly direct deposits totaling $500 or more made to this account, or
2. Keep the daily balance in your checking account at or above $1,500, or
3. Keep an average balance of $5,000 or more in your checking and other types of qualifying Chase accounts.

Posted in Banking, Credit Cards | 14 Comments »

ING Direct Business Savings Account Promotion Reference Codes

ING Direct is well-known for their personal savings account, but they also have a Orange Business Savings Account. As you might expect, it’s straightforward with no minimum balance requirements and no maintenance fees. Interest rates aren’t the best right now, but it’s still a good place to stash extra business cash deposits if you don’t need it immediately. The current interest rate is 0.50% APY, and is FDIC-insured.

As with their personal account, you’ll need to link this account with a business checking account. It works with sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. You can also provide access for up to three people with separate login credentials.

Here is an ongoing list of current and expired promotions. They are sent out via ads in business magazines, e-mail marketing, and online banners. Usually there is Reference Code that needs to be entered on the online account application.

Current Promotions For New Accounts

Expired Promotions
Read the rest of this entry…

Posted in Banking, Deals & Offers | 1 Comment »

Cash Reserves & Emergency Fund Update: Q1 2012

Having at least six months of expenses provides financial stability, helps you avoid debt with high interest payments, and lowers stress levels. We have a full year of expenses put aside in liquid cash, and it lets me sleep well at night.

Emergency funds can actually have a better return on investment than what you see on a bank account. But that doesn’t mean I shouldn’t still maximize my interest earned, especially as cash is an asset class where you can increase your return without having to take on additional risk (if you stay FDIC-insured or equivalent).

Even though interest rates are low, if you can earn an incremental 1% more over years it becomes significant. I last shared my emergency fund breakdown in the 2nd quarter of 2011, and rates have stayed low since then. Here’s what the overall scene looks like today…

Rewards Checking Accounts

Usually through smaller credit unions with limited membership areas, these checking accounts pay a higher interest rate if you jump through some hoops each month. However, if you make a mistake you’ll forfeit virtually all your interest for that month, so it can be tricky. An example is Consumer’s Credit Union and their Free Rewards Checking account paying 4.09% APY interest on balances up to $10,000 if you make 12 debit card purchases + one billpay per month. The rate is even guaranteed at least through June 30, 2012. You can join with a $5 one-time fee, as noted on their online application.

Find a local rewards checking account by using the filters at the DepositAccounts database. I no longer have any money in any rewards checking account as the benefits are too low for the time and effort of jumping around, especially when I could just do some $250+ credit card bonuses for much more (non-taxable) easy money.

Long-Term CDs – Ally Bank

If you have a large cushion, it’s quite likely to just sit there for years or more. Therefore, I think it’s okay to put some of it in longer-term investments. With the Ally Bank certificates of deposit, you can still access your money as long as you pay a early withdrawal penalty of 60 days interest. That’s significantly less than at other banks. I have 5-year CDs paying 3% APY, but the current rate for new deposits is 1.74% APY for a 5-year CD. I’ll show you below why this is still a competitive and flexible rate.

Let’s analyze a CD paying 1.74% APY with an early withdrawal penalty of the last 60 days of interest. Here’s how your actual annualized interest rate would fluctuate given your holding period.

After just 6 months, you’ll already be earning 1.15% even after the penalty. If you hold it a year and withdraw, you are already at 1.45% APY. Try to find any similar 6-month or 12-month term CD that beats those rates. Basically after just 6 months I have nothing to lose and a lot to gain, so I keep a sizable chunk here.

U.S. Savings Bonds

For inflation-linked Series I Savings Bonds, the total rate earned consists of a fixed rate and a variable rate that adjusts with inflation every 6 months. Series I bonds bought right now will earn 3.06% for the first six months, and then an unknown rate based on ongoing inflation after that. Even with zero inflation, it will still earn more than any 1-year bank CD… and I really don’t see zero inflation.

My older I-Bonds have been paying off, some of them have a higher fixed rate of about 1%. I was recently earning 4.6-5.6% a six month period. For 2012, the annual purchase limit for electronic U.S. savings bonds bought at TreasuryDirect is now $10,000 per series, per person. You can also get another $5,000 in paper bonds from your 2011 tax return refund using Form 8888.

Online Checking and Savings Accounts

The online savings account world has been a rather boring and dreary place. The classic ING Direct is now at 0.80% APY, and other banks are clustered around it. The only mildly exciting thing that has happened is TIAA-CREF has started TIAA Direct with an intro rate of 1.25% APY. But even they admit that’s a promo rate and it could drop any day. It appears far too difficult to separate yourself from the pack for long in this rate environment, otherwise somebody would do it. Alternatively, Everbank has their Yield Pledge Money Market and Interest Checking paying 1.05% APY guaranteed for the first 6 months for new accounts. Since it is fixed, that is better than any other 6-month CD rate out there.

Since I already have my CDs there, I’ve been happy waiting things out with Ally Bank for my daily banking convenience and emergency fund needs. Their Interest Checking currently pays 0.40%-0.75% APY and their Online Savings is at 0.84% APY (as of 3/07/12). I am going with Ally due to their checking features like no fees, ATM fee rebates everywhere (even at ripoff Las Vegas casinos), and free overdraft transfers from savings. This allows me to keep a minimal balance in checking and more in savings/CDs. Check out my Ally Bank Checking account review for an in-depth rundown.

Posted in Banking | 22 Comments »

New Checking Account Promotions: Citibank, Chase, M&T Bank

Interest rates looks to remain tiny for a long time, so if you want to boost your interest earned while keeping your money safe in banks, taking advantage of sign-up bonuses is one way to do it. Earning 1% APY on $10,000 is just $100 a year, and it’s even hard to get 1% APY now! Why not double or triple that with some new accounts.

Citibank $50 bonus if you open a Citibank account with $1,000 and complete 1 direct deposit and 1 electronic bill payment for 2 consecutive months. New checking account customers only. There’s no monthly service fee if you maintain a $15,000 combined average monthly balance requirement in eligible products; otherwise $20.00 monthly service fee is applied. Eligible products are linked deposits, loans, mortgages, and investment accounts. $100 bonus available with Citigold account.

Chase Bank $150 bonus when you open a Chase Total Checking account and set up direct deposit (new Chase checking customers only). This account is free if you make a $500+ direct deposit each month, or have $1,500 minimum daily balance.

M&T Bank $100 bonus when you open a MyChoice checking account and set up direct deposit within 90 days. This account is free if you maintain a direct deposit each month or have $500 minimum daily balance. $125 and $150 bonuses also available with upgraded accounts (and higher requirements).

Capital One $100 bonus when you open a Interest Online Checking account by 1/31/2012 using offer code CHEC168DF and make a direct deposit of $250 or more within 90 days. No monthly service fee, and pays 0.75% APY on balances less than $100k.

Posted in Banking, Deals & Offers | 14 Comments »

FACT Act Personal Data Files: Banking, Insurance, and Employment History Reports

Reminder for 2012! The most well known part of the Fair and Accurate Credit Transactions Act (FACT Act) is that you can get a free copy of your credit report from all three major credit bureaus once every 12 months. However, there are also several other consumer databases that you should check as well which are also available absolutely free once every 12 months, and they can also have a significant financial impact. If you got one last year, you can now get another one and reset the 12 month clock.

ChexSystems Banking History
ChexSystems is a consumer information database used by an estimated 80-90% of all banks to help determine the risk of opening new accounts. Think of it as the bank’s version of a credit bureau. If a person commits check fraud or overdraws their account, it will be listed here. In addition, the simple act of opening or closing a bank account may be recorded in their database. Getting a negative ChexSystems record can leave you blacklisted from opening bank accounts at most major banks.

Get your free ChexSystems consumer report here.

Medical History Used For Insurance Underwriting
MIB (previously known as Medical Information Bureau) is run by 470 insurance companies and has a “primary mission of detecting and deterring fraud that may occur in the course of obtaining life, health, disability income, critical illness, and long-term care insurance.” They record information of “underwriting significance” for those who have applied for life and health insurance with MIB member companies. If you have not applied for individually underwritten life, health, or disability income insurance during the preceding seven year period, then you probably don’t have a record.

Get your free MIB consumer file here.

Insurance Claims History
CLUE stands for Comprehensive Loss Underwriting Exchange, and they collect information that is used to calculate your potential risk of loss and thus your insurance premiums. You can also find out about previous claims on the house you are currently renting or recently bought, even if they weren’t made by you.

The C.L.U.E. ®Personal Property report provides a seven year history of losses associated with an individual and his/her personal property. The following data will be identified for each loss: date of loss, loss type, and amount paid along with general information such as policy number, claim number and insurance company name.

The C.L.U.E. ®Auto report provides a seven year history of automobile insurance losses associated with an individual. The following data will be identified for each loss: date of loss, loss type, and amount paid along with general information such as policy number, claim number and insurance company name.

Get your free CLUE Auto and Personal Property Reports here.

In addition, you should also request your free A-PLUS report (Automated Property Loss Underwriting System), which is a smaller database that also contains information about property loss claims.

Employment History
When a potential employer runs a background check through LexisNexis (formerly known as ChoicePoint), this is the information they see. It doesn’t seem to claim be comprehensive, and they may have only limited or even no data about you, but I would still check for potentially negative data.

LexisNexis Screening Solutions Inc. provides Employment History Reports to employers only with a job applicant’s or employee’s consent. Employers utilize a variety of companies to obtain employment history information. Our files would only contain information on you if LexisNexis provided your Employment History Report to an employer.

Get your free LexisNexis employment history report here.

Tenant History
This report can be important if you are a renter and someone runs a background check on you at LexisNexis (ChoicePoint).

LexisNexis Screening Solutions provides Resident History Reports to housing providers that have the subject’s consent. Housing Providers utilize a variety of companies to obtain tenant history information. Our files would only contain information on you if LexisNexis provided your Resident History Report to a housing provider.

Get your free LexisNexis tenant history report here.

Now you know some of what Big Brother does.

Posted in Banking, Insurance, Real Estate | 10 Comments »

Treasury Direct Review: Electronic Savings Bond Security Concerns

Despite the Treasury’s obvious dislike for the small investor, Series I Savings Bonds still offer a relatively good interest rate. As of January 1st, 2012, you will no longer be able to buy paper savings bonds other than a small window using your tax refund. The only option left is buying electronic savings bonds via TreasuryDirect.gov. This brings me to the following reader question:

Was just reading Mel Lindauer’s comments in the Bogleheads forum about I-Bonds and the trouble with Treasury Direct. Seems a great many folks hate the system to the point that they would rather not use it. 2012 is/was to be the year that I first began purchased I-Bonds, having finally got to the point of maxing out all other tax deferred and tax free methods. Now I am not so sure…what is your experience with TD?

First, let’s get to what I see as the main reason why most people choose not to use the online service at TreasuryDirect (TD). TD is not a bank and does not fall under Regulation E and the Electronic Fund Transfer Act that establishes consumer protections for loss or theft of money from your account.

If your paper savings bonds are stolen or lost, the Treasury has a process in place to reclaim your bonds. However, if somehow your electronic savings bonds were stolen, you would stuck with the loss with no liability from TD. It doesn’t seem to make sense, but it’s true.

So what do you do? The easiest thing to do is not use TreasuryDirect. But it remains a good investment, so in my case I looked into what security measures were in place to prevent such theft. In November 2011, TD instituted some security changes to their login process. What would a thief have to do in order to cash in your savings bonds?

1. They need your account number, which is more like Z-12345678 as opposed to johnsmith.
2. When you login with a new computer, a one-time passcode will be sent to your e-mail address. So, they would need to have access to your e-mail address as well. You can choose to register your computer for future visits if you like, but it would seem safer not to do so. I don’t log into TD very often so my cookie expires anyway by the time I log in again. This means a unique code is sent every single time I log in.
3. They would also need your account password. I would hope your e-mail password and your TreasuryDirect password are different. In any case, it’s harder for viruses or keylogger programs to record your password because you must enter it using a virtual keyboard (unless you circumvent it by disabling Javascript).
4. Now, at this point they have online access to your account and can see your balances. But to cash out a bond, first you must answer a security question (mom’s maiden name, etc.). More importantly, you can only cash out a bond to a linked bank account. So the thief would need access to your bank account (…which is protected by Regulation E mentioned above!)
5. Alternately, they would need to send in a paper form adding an alternate bank account under their control. However, the name on the bank account must match the name on the TD account, and the form requires a Medallion Signature Guarantee where a third party checks official ID for identity verification. The TD website itself has improved over the years so that any small change (bank addition, profile change) results in a e-mail notice.

Personally, I deemed it exceedingly unlikely for an actual theft to occur and made the decision to go ahead and use the website. My holdings there are significant, but under 5% of total net worth. I know that others have also had technical issues with accessing their account, but I have not experienced anything like that. In the end, TreasuryDirect definitely has its flaws, and I would not fault someone for not using it as a result. You have to weight the risks and benefits for yourself.

Posted in Banking, Savings Bonds, Treasury Bills and Bonds | 21 Comments »

Perkstreet Checking: Best Bank If You Prefer Debit Cards Over Credit Cards

Regular readers will know that I like using credit cards for the cashback or travel rewards, even though I never carry a balance from month to month or pay any interest. However, I also accept that many people prefer debit cards as they suck money straight out of your checking account. If that sounds like like you, you’re not alone – when it comes to a charge card purchase, nationally it’s just as likely to be a debit card as a credit card. I get it – debit cards more psychologically similar to spending cash and there is no change of racking up a balance (although there are overdraft fees).

The best way to describe Perkstreet Financial is that it’s the best checking account if you don’t like using credit cards. They offer the best cashback rewards on debit cards by far:

• 1% cash back on all non-PIN debit card purchases. The cash back you can earn on these purchases is unlimited.
• 2% cash back at popular retail stores. On online purchases at: Amazon.com^®, iTunes^®, Target.com, Apple.com, Walmart.com and Bestbuy.com, on in-store purchases, when you have a Current Account Balance of $5,000 or more at: Walmart, Target^®, Best Buy^® & Apple^® stores, and when you and a friend use your cards at the same restaurant, bar or coffee shop within 60 minutes of each other.
• 5% cash back at a rotating set of retailers. Up to $250 a year. For May 2012, they are Zappos.com®, Sports Authority®, Williams-Sonoma®, and Hallmark.

As long as you have some sort of activity each month (billpay, deposit, withdrawal, cleared check, debit card purchase) then there is no monthly fee. Some other improvements they’ve made are that you can deposit checks sent overnight for free at UPS Stores or Mailbox Etc. (or via free prepaid envelopes). They don’t offer ATM rebates like some other places like my account at Ally Checking, but they do offer 42,000 free ATMs across the country; use their ATM locator to see if there are convenient ones to you.

Right now, you can get an extra $25 bonus cash back when you apply for an account online by December 25th, fund with $25 or more, and use your card at least 3 times in the first month. (Ironically, last time I started an application they let me fund with with a credit card up to $500 and promised it would go through as a purchase and not a cash advance.)

Posted in Banking, Deals & Offers | 9 Comments »

American Express Personal Savings Account Review

American Express started a banking division recently called Personal Savings through their FDIC-Insured bank American Express Bank, FSB. There are currently just two products – a high yield savings account and certificates of deposit. This is a review from my own experiences with the American Express High-Yield Savings Account, which hopefully will help you decide if you should open an account yourself.

First of all, you don’t need to have an American Express credit or charge card to open a bank account with them. The credit card and banking websites are actually separate, and you use an independent login and password to access your credit card and banking information. I wonder if they’ll integrate everything together sometime in the future.

The Basics
The savings account has no minimum balance requirement, no inactivity fees, and no monthly fees. Their rate history suggests that they do consistently pay a competitive interest rate, currently 0.75%, sometimes either matching or being above the rest of their competition like ING Direct (0.80% APY) and Ally Savings (0.84% APY as of 3/07/12).

Like those other online savings banks, this one is designed to piggyback onto your existing checking account through online transfers. There are no checks, no ATM cards, and no online bill-pay with this account. If you really want, you can withdraw your money by having them send a check payable to you. Interest is compounded daily, and credited monthly. Interest begins to accrue on the business day the deposit is received, as long as it is by 5pm Eastern.

Application Process
The application process can be done completely online. You provide the usual personal information, as well as the routing number and account number of the checking account you wish to link and fund your account with. There is no minimum opening amount. AMEX Bank will then send two small verification deposits of under $1 to your checking account (and then withdraw them as). They’ll also send a verification code to your e-mail address. With this information, you can activate your account and initiate the funding transfer. They’ll send you a welcome packet in the mail, but there is no paper to sign or send in.

Website User Interface
After you log into your account, you’ll find yourself on the domain IBanking-Services.com. It may look familiar to you; This is the same back-end interface used by two of my local credit unions as well as many other online banks. I’m actually fine with this service, it does the job and I’m used to it, but it’s not especially sleek or customized. Here’s a screenshot (click to enlarge):

Online transfers to/from your external accounts take the usual couple of business days to complete. However, I wasn’t thrilled about this note on the transfer page: “Funds from electronic deposits to your account that you have initiated through us will generally be available for withdrawal on the sixth business day after the deposit is initiated.” This is likely for protection against fraud, but could be inconvenient and discourages me from using this account as a central transfer hub.

Other Handy Stuff
American Express Bank, FSB Routing Number: 124085066
Customer Service: 1-800-446-6307, available 24 hours a day. I haven’t had to call in yet, but American Express does have good customer service on their credit cards in my opinion.

• American Express Personal Savings

Posted in Banking, Reviews | 16 Comments »

Ally Bank ATM Fee Rebates Work At Exorbitant Las Vegas Casinos

I spent a few days in Las Vegas last month as an extended layover, and wasted some time gambling. This also gave me a chance to try out those unlimited ATM fee rebates on my Ally Bank checking account. I went to three different ATMs at three different places, and the ATM fees were $2.50, $4.99, and $4.99. Can you imagine taking out $40 and getting charged $2-5 from your own bank, and then $5 from the ATM owner? Ouch. (Ally doesn’t charge you to use other ATMs, but most big banks do.)

By the third try, even I felt bad for Ally paying for all that and took out a larger sum for the rest of the trip. At the end of the month, the total fees of $12.48 was credited automatically to my account as promised. (My total eventual losses for the trip were around $100, I’m sad to say.)

Oh, and if you’re confused by the negative balances, I have it set up for free overdraft transfers from my Ally online saving account to my checking account whenever my balance hits zero. This way I am earning the most interest possible in the savings account at APY. I can’t do more than 6 withdrawals per month, though.

Posted in Banking | 13 Comments »