Free Banking Tips

Yes, we are busy but we have to keep in mind that at least we should browse our mails and see what may be very important. Most letters from our bank sometimes makes us think that its all about marketing. But, did you know that 25% of bank charges are due to unread emails which we could have avoided if we just alot at least a few minutes to read important bank notice? If we don't read our e-mail in a regular basis then it is better to find time browsing on our paper mails as the bank also send notices on possible changes in the banks service fees. Banks may change its requirements every six months to avoid monthly service fees depending on the market trends and cost of doing business.

Keeping our eyes on our mails will also protect us from fraudsters and makes it difficult for fraudsters to have an easy way of gathering important data regarding our banking.

Banker's Tips: Let's make sure we are up to date with the current market trends and price of bank products that may have a great impact with our finances.

Though, at times our banks may also give courtesy refunds or reimbursements yet its better to be knowledgeable of those possible bank changes.

Have you already set your bank what your solicitation preferences? Do you receive tons of advertisement from your bank, or maybe from other institution? How bout email advertisement? If you just disregard it and don't even get anything from it other than it eats off some of your time deleting emails and shredding all the papers and answering phone calls, then it is best to get rid of them. 

Banker Tips:  Call your bank and check whats in your solicitation preference. It is your right to chose whether you like to get mail or email  advertisement. You can even choose whether you prefer telephone solicitation or not. If you work night shift and you get bugged by phone calls while you are sleeping then it is better start calling and tell them what your privacy preferences are. It is your right to privacy. 

There is nothing wrong with free trial, in fact it is good because it sounds good when we hear the word 'free.' Its not bad if its free, if it is totally free or let's say its 100% free. 

Well, are we sure it is free? When we go online we get blinded when we see the the magic word 'free trial,' but what are some problems that can cause our accounts if we end up dealing with fraud merchant? when do we say these merchants are not fraudsters? When we like the products, we forget these possibilities. It is not easy to figure out who are the fraudsters and who are not. 

Banker's Tip: Banks offer their customers to open a different account that is dedicated for online transactions. This is very advantageous specially for those who have an automatic direct deposit in their account as this can avoid affecting major funds in case unexpected things happen. Just imagine what could happen if you lose your full pay check because of this.

Let me give a very good example, Mr. Jackson works at Mega Supermarket, he receive a regular direct deposit at around $650-750.00. He signed up for a free trial at a merchant named Clear Water Club (hypothetical example), since this is free, he gave his card number online so he can get the free trial, after 2 months of signing up, Mr. Jackson received his pay check in his account, at the same time a merchant in the same name charged his account an exact amount of $325.99. Not only that, merchant also made an error as this transaction got deducted in the account twice. Because of this Mr. Jackson had no more funds left in his account as he got reap off at about $660.00, since this happened, he was not able to go to work. He cant even gas up nor buy groceries for his family.

Most of the recurring card payments to merchant are difficult to stop, sometimes card even has to be close to give a long time solution to free trials and automatic debits. Avoid providing account information if you know its not necessary to provide it unless you are confident that they are not fraudster. 

What is W8-BEN form? W8-BEN form is a Certificate of Foreign Status of foreign Beneficial Owner for Unite States Tax Withholding. This form is completed by NRAs or Non- Resident Aliens. Foreign persons are subject at a 30% rate on income received from U.S. sources that consists of:

Some of the detailed information regarding this form can also be viewed at www.irs.gov

Acknowledgement: www. irs.gov - Department of Treasury Internal Revenue Service

The U.S. National Security Agency is fully aware about the flaw in the way that many website send sensitive information. Now, the Heartbleed bug have been discovered it has been regularly used to gather critical intelligence. Though the N.S.A. is trying to keep the bug secret in pursuit of national security interest, as it may trigger the issue on the role of the government's top computer experts. N.S.A tries to comment on the report but denies it was aware of Heartbleed until the vulnerability was made public by a private security report.

Since this issue is currently going on, we are starting to question on how can our online banking will be kept secured as we are not aware how our bank can protect our financial security. 

The good news is banks are fully aware of the current issue and are taking appropriate measures to keep each customer's account secured. Our online banking is secured, and no need to worry about hack or breach issues. 

An investigation is currently on-going due to possible data breach that might have occurred in California Department of Motor Vehicle (DMV). 

The investigator are looking at the angle that this maybe related to the transactions made on its website from August 2013 to January 2014. Huge number of debit card and credit card might have been affected and the investigators have been watching closely on those accounts that currently have unauthorized transactions and are found to have used DMV online website as a form of payment in the past few months. Even though there was no clear evidence of system hack, some banks has started investigating separately and working closely to avoid losses in their customers' accounts. 

New debit and credit will be sent out to customers who might potentially affected by the possible data breach. 

Do you have a savings account? If you do, then it means you should know the meaning of Bank Regulation D. 

Regulation D is a law governed by Federal Reserve that limits each savings account only up to 6 pre- authorized debit transactions in a full statement cycle or a whole month period. The main reason for this is to implement monetary policy on how each banking institution should classify each depository accounts for reserve requirement purposes. There are different types of deposit accounts, and the most common types are the Savings and Checking Account. Savings account is mainly for savings purposes while checking account is for spending. 

To avoid penalties in a savings account which may cost between $12 to fifteen dollars per transaction, these are some transaction that we have to limit in a full month period or 1 statement cycle.

The only two debit transaction that can be done in a savings account without limits are the following:

• ATM Transfer
• Branch Electronic or counter withdrawal

Banker's Tip: Open a separate checking account and consider it a savings account. Just make sure you check with your bank what fees may apply to keep a checking account and see if you can meet the requirement. This way, you no longer have to worry about the 6 pre- authorized transaction. These works well, specially if you want to secure your funds and don't want to put all your money in just one account. But if you want to keep your savings account, then you can also keep a register of all your expenses per week and do a lump some funds transfer for your budget to avoid regular funds transfer out of the savings account. Do not forget that most banks offers unlimited ATM transfer out of the savings and even unlimited withdrawal from the branch. Wells Fargo, has an automatic set-up that reminds customers if they are about to go over the limit specially if you have online banking.

Direct Deposit Advance is very common to customers who are banking with Wells Fargo, specially to those that receives a qualifying direct deposit every month. Direct deposit Advance is a line of credit designed for short term borrowing needs. This is found to be more costly compared to other credit cards and line of credits since it charges $1.50 for each $20 borrowed. For example, if you borrow $500 you will be charged with $500 plus the $37.50 on top of it. This will be automatically taken out on the next qualifying direct deposit of $100 or more in an account.

Payment plan is another method of payment that can be used as well instead of the automatic deduction. Though, the bank is strict and consider some factors before an account gets approve for payment plan. The good thing about payment plan is it will allow the customer to pay $100 only in every qualifying direct deposit. By speaking to friendly Wells Fargo representative we can i identify if we may qualify. The fund is immediately available once borrowed.

 Here are some factors the bank consider before approving an account for a payment plan. 

1. The service should have already been used for 3 consecutive statement cycle

2. The account should have at least an outstanding balance of $300 or more, and lastly

3. State where the account was opened is also considered.

Admittedly, most of us are thankful since this service is available. We can either use the Wells Fargo automated response system or speak to a bank representative or do it through the online banking. Let's just be more mindful of borrowing as we also have to pay the same amount and even more as we get our next paycheck. 

What happened to the checks that I deposited? When will this check become available? Where did the check go? why does my bank hold me check for so long? This has been our usual question whenever our checks are held by our bank.

Every check that is deposited or cashed in the bank are all verified by the Federal Reserve Bank and every bank has abide with this to protect the customers and also the bank itself. This is the reason why checks are held. Though, banks are making all the effort to avoid putting holds on the checks that are deposited, there still some instances where checks are held. Increasing of overdrafts in the account, history of previously returned items, reports that shows to have potentials that check can be return or even how long the account has been open can affects the decision on how long the check has to be held. In some instances, banks also hold checks to test for fraud or insufficient funds on the part of the check writer.

In U.S there are also checks that are checks that are no longer subject for hold. Checks issued by the government and commonly by Social Security -retirement benefits or child support and IRS- for tax refund. Most banks also allow customers to have a portion of the check deposited available depending on how the check was deposited. Example, since the bank encourage customers to take advantage of the ATM deposit service, they put an initial credit of $100 or a certain dollar amount when check is deposited before a certain cut- off time.

Each bank may have different procedures or rules when it comes to check availability so it is important that we understand our banks' specific policies regarding checks that are being held.

Let us admit, saving money is one of the most difficult thing to do. The last thing that we will do with our money is to put it somewhere and allow it to gain interest. It is very difficult to save money. Even if we are able to keep small part of it and put it in a savings account, we still end up putting it back to our checking account and using it. 

The most common and popular savings account in U.S. is the Way2Save savings account,offered by Wells Fargo Bank, the second largest bank in U.S. Way2Save Savings account is easy to manage, it allows you to save a dollar or even more whenever you swipe your card or make a purchase using your debit card. You can even increase the amount of transfer whenever you swipe your card, if your not satisfied with $1 transfer you can also update and increase it by calling the bank. In case you find this savings option slow, you can also set up an automatic transfer or recurring transfer of funds depending on the occurrence that is convenient for you. Example, set up an automatic transfer of $30 from your checking to your Way2Save every time you get your paycheck. This way, you will have to keep a certain amount in the checking account, since you are have a recurring transfer to come out anytime soon. Sounds cool, right? This is just about mind set.

Even though Way2save savings does not earn high interest compared to other savings account, it is better to have at least extra funds that can be used during rainy days, since this is accessible at anytime, unlike CD account or other types of high interest bearing account, that takes longer before you can have access to the money.

Acknowledgement: Wells Fargo  Way2Save Savings Account. 

All of the banks in U.S. usually receive large volumes of calls before or during the day or five to 10 hours before the schedule of the direct deposit posting. This is because we want to find out if our job have deposited our paycheck to our account. Majority of the people in U.S are already taking advantage of the direct deposit. Though in some instances there are employers which does not prefer the direct deposit service, though admittedly this is the most convenient way of receiving a regular paycheck instead of giving an actual check and letting employees cash the checks personally by going in the bank or by depositing in the ATM. 

It is better to call the bank early in the morning than to run to the bank just to be able to have the check cashed. If you have direct deposit to your job it will be easier to receive your paycheck thru direct deposit. This is hassle free and convenient. Aside from you no longer have to fall in line and wait for your turn just to be able to cash the check, it will also allow you to easily identify when it is best to set up monthly bills and savings transfers.

In the next few days I will give some tips on how we can save the easiest way. 

When I first had my bank account, this is the first thing i asked myself. "What is my account number?" I was only 16 years old that time when i started my own account. I hope i did not forget anything from my list but this is where we usually see our account number.

1. Welcome letter from our bank when we open a new bank account.

The welcome letter is the first letter we receive from our bank from the time we open our bank account. We, Americans does not usually sit down and read our letter specially if its coming from the bank since we think its just a piece of advertisement.

2. Check book or check.

3. Online banking.

If you have online banking then you should definitely see where your account number by looking at the your statement. Some banks set up online banking where full account number can be found right from the time you logged in to your bank account. But, for some national banks, account number is found at the PDF or ADOBE online statement only when it is pulled up.

4. Paper Statements.

If you love to receive a regular love letter from the bank, this must be your fastest source. You will definitely see your account number on your paper statement.

5. By visiting the banking location.

This is for worst case scenario, when you don't have checks, paper statements or online banking. Most definite and sure way to clarify if you got the correct copy of your account number is by visiting the banking location or the branch. 

Now, we no longer have to call our bank and play stubborn asking for a copy of our account number. I tried one time and talked to a customer service representative from my bank and they really don't provide this information over the phone but good thing options was given to me. Hope this post helps. 

Filing for taxes has been the most awaited happening after the holiday season. This is the time when we are starting to back up from the expenses last holiday after the holiday craze, parties and shopping spree. So this is the moment that we have been waiting for, last January 31, 2014 IRS just started receiving and processing forms for the tax returns.

After checking for free federal tax filing, preparing and organizing all the paperwork, receipts and other forms and checking of possible increase on tax refund through IRA or other equity account, we are now excited to get our tax refunds.

But, what causes the delay of our Tax refund deposit from posting to our count? This are the things that we have to consider.

1. Am i providing my correct social security?

98% of the mistakes that remain unnoticed are from the things that we believe and we think we already know. This is because we repetitively dictate and use this number we often don't notice our errors on this basic information. Double check your social security number to avoid hassle.

2. Is my account valid? 

There are some instances where accounts are having some issues that becomes a barrier for us to receive our direct deposit. We can also check if our account is open and active to avoid delay. If you have online banking and you no longer see your account then this might be because your account is no longer open or active.

3. Did i provide the correct account number and routing number of my account?

Make sure that this two major information is provided. 78% of tax payers tax refund deposit delay are due to this issues. Routing number are easily available compared to account number. If your not sure of your account number, then try to call your bank first to confirm if your account number is correct.

Hope this post help us get a jump start after we get our tax refund.  

The biggest U.S. arts and crafts retailer, Michaels Companies Inc/Michaels Store, said it is investigating a possible security breach on its payment card network and advised customers to check their account activities for possible fraud activity.  This data breach incident will already be considered the second known data breach happened at the store since 2011. 

Michaels Chief Executive Chuck Rubin said in the statement on Saturday, January 25th, "We are concerned there may have been a data security attack on Michaels that may have affected our customers' payment card information. We are taking aggressive action to determine the nature and scope of the issue."

Federal investigators are aggressive to find out the perpetrator since it was not yet fully identified how many cards have been affected or whether the system were still compromised at the moment and looking out the possibilities if it might be the same Eastern Europe criminals which attached Target and Neiman Marcus. The company has a good intention in warning the public and launching a probe into the matter after hearing that there had been an increase in fraud involving cards of customers who had shopped at its stores.

January 28 2014, after the incident, and Illinois consumer, Christina Moyer sued Michaels Store Inc. in federal court in Chicago accusing Michaels Store Inc. of breaching and implied to protect the account information. Moyer said she and other consumer who filed the complaint must spend more time and money to deal with the consequences.

Bank has also started sending our cards for customers who might have been affected or might have card details compromised. Customers will be notified in advance in case new cards will be mailed out and to assure that customers receive their card right before the permanent cancellation of cards.

Just like Target, Neiman Marcus, an American luxury specialty department store was confirmed that hackers invaded its system for several months which involve and may compromise 1.1 million credit and debit card. The same malware installed in Target terminals are found to be the same malware that infiltered Neiman Marcus terminal and exposed information of 110 million customers this was according to person who was interviewed but not the authorized person with authority to speak about the issue regarding the attack. 

According to the statement posted on Neiman Macus Website, the said malware was "clandestinely"  put into the system and had stolen payment data off cards from July 16 to October 30, 2013. 2,400 card used at Neiman Marcus and its  Last Call outlet store have been used fraudulently. Bergdorf Goodman which also owns Neiman Marcus was not aware of the data theft until mid of December when a said payment processor reported that the unauthorized charges are showing up on cards that was used at the store. 

Good thing, Neiman Marcus also offered one year of free credit monitoring for affected shoppers for additional security. The company also have coordinated with the banks to help resolve the issue and lower the chances of theft. Banks and other Credit card companies has started sending new cards to their mutual customers who was affected by the date breach. 

Acknowledgement: Neiman Marcus, Neiman Marcus Last Call Outlet

This is what 1099 form looks like. Usually banks proactively send this form to customers whenever they are required to file this for taxes. This form is visible also from the official IRS Website- www.irs.gov.

1099 form is the form used to file taxes for Income generated from Checking, Savings, Savings Bond or Even Certificate of Deposits.

You will only have to file this for taxes if the interest earned in an account is at least $10 or more. For example, you have a savings account that earned $8.56 interest prior year and a CD account that earned $9.00, these accounts have more than $10 interest combined together but you no longer have to file this for taxes since it is in per account basis. If you have earned $10 or more in an account, you may also contact your bank to send you form that you need with the complete details of your interest earned.

Now you no longer have to worry that IRS might run after you.

Bank fees are expensive. Some people are moving banks mainly because of Overdrafts and NSF- Non-Sufficient fund fees. That why its important to know what these fees really means so we would know how to avoid them and get away from them.

Some people are thinking that Overdraft fees are Non-sufficient fund fees are the same. Overdraft fee is a very common fee for Americans. These are fees assessed by banks whenever the account goes below zero when a transaction post in an account. These fees are caused by debit card over-usage, chargeback to merchant, merchant error, intentional fraud, unexpected electronic withdrawals, temporary deposit holds, even bank error-in very minimal cases. Overdraft fees are easier to avoid compared to NSF Fees since this are usually caused by small transactions such as Starbucks, 7-Eleven, Walmart or any other store. We just have to control ourselves and avoid using our card whenever we see that we don't have enough funds.

We might be thinking that all the fees that asses in our accounts are Overdraft fees. But, not all fees are overdraft fees but the most uncontrollable fee that can surely give us pain in the ass is the Non-Sufficient Fund Fee. NSF is a term used by banking industry. We get this fee whenever we had a return item. These can be check, automatic draft or ACH, recurring card payment- if the transaction amount is to high (but sometimes still depends on the bank if they ill cover the transaction). People who are use to writing checks are prone to this kind of fee specially when they don't have extra funds to use as buffer in their accounts.  If you know you don't have that buffer then there's no reason for you to miscalculate the account because you will surely get this fee. Overdraft Protection will be very helpful as well since these transaction are unpredictable and can post at any time.Loan payments that usually processed by Loan Sharks are also prone to these kind of fees because these Loan Sharks (that's why they are called loan sharks) will keep on processing your payment off your account even if you have notified them that there's no enough funds to cover.

Now we know the difference between these two fees so it will be more easy for us to avoid them. Its amazing how banks can really get great earnings just because of fees. The best thing we can do now is to manage our account better and be smart in writing checks, making a purchase or processing an automatic draft.

You might have been wondering on how much bank earns each year just plainly from the overdraft fees they charge whenever accounts get into overdraft. We usually end up saying “Oh My God! My bank is killing me with this overdraft!” or maybe we say “nickel and dime is the banks job.”  The worst is we call our bank and we tell them “give my money back!”

Shopping experience at Target has been very amazing. You get anything you need whether its clothes or stroller for your baby, a new bag for yourself, nice watch for your husband and even furniture for your new house. You can even do your groceries for your daily needs. Shopping has never been this great because they got everything you need in the most affordable and at a very reasonable cost. You even get good deals and discounts on some items, specially for groceries.

Did you recently get overdraft or non-sufficient fund fee on your account? If you had, then that might already be because of an ACH. Some people find it jargon but this is almost a common term for those people who use to get bank fees due to this "ACH".

What does ACH means? ACH stand for Automated Clearing House. In US this is the electronic network for financial institutions. Whether you bank with Wells Fargo or Bank of America all your automatic payments is processed and moved by ACH. This is where insurance premium, loan payments and other kinds of utility bills are being processed. Other debit transactions such as recurring card payments are also processed in ACH. If merchants processed your check electronically it means that it was done in ACH. Approximately more than 21 billion ACH transactions with more that $37 trillion total value is being processed in ACH today compared to $31.74 trillion last 2010.

Due to ACH we are able to process our payments easily. The only disadvantage is it can also cause some fees if we miscalculate our balance even for a single dollar or even cent. It takes one to three business days for an ACH to clear yet stopping them is difficult when the payment has already been processed. Stop payments may also help if the request was made in the earliest possible time, though some banks charges fees for stop payment request.

Some banks have already come up with options to help avoid fees due to ACH. Overdraft protection is a good option, You can also check with your bank what other agreements they have to avoid never ending fee.

Acknowledgement:  Automated Clearing House/www. ach.com