remote credit unions and banks

[bobbee25]

How safe is it having CDs with banks/cu and dealing via the telephone and internet ?
I was looking at Pen Fed and Fort Knox for example.
I assume that if they are insured there shouldn't be any issues, or are there ?

 

[harley]

I've been doing it for years, no problems. It's relatively easy, and probably safer than carrying a check into a local bank. Usually I need to mail or fax a signed (sometimes notarized) form to the sending bank, setting up a wire transfer to the new bank. No big deal.

 

[lhamo]

We've been living overseas since 2002 and our main US accounts are 1) our local credit union (on the west coast, which we also used as our primary bank while we lived in NYC for a few years) and 2) ING. Have never had any problems. You do have to plan ahead a bit for transfers and, in our case, international wires, etc. I try to arrange the latter when in the US, so that we can use the toll-free number (have to pay when dialing from overseas).

I monitor accounts daily via yodlee moneycenter. Have never seen any strange activity, though.

The only real hassle I have had is with rolling over retirement accounts -- some institutions require a medallion signature guarantee, and you have to go in to a local bank branch for that. We had some delays in transferring accounts due to that requirement.

lhamo

 

[Westernskies]

I have had a checking account with a small Wyoming bank for many years; have maintained the account because of the great service (they still do escrow accounts, for example), with direct deposit and online banking, physical location has never been an issue. I also have an account with a local bank here in AZ only ,set it up because they were paying 3% on MMA's a year or so ago, that has changed, but it's nice to be able to get free notary services,coin counting, wire transfers, etc...
FDIC Insurance pretty much levels the playing field in terms of risk.

 

[Nords]

How safe is it having CDs with banks/cu and dealing via the telephone and internet ?
I was looking at Pen Fed and Fort Knox for example.
I assume that if they are insured there shouldn't be any issues, or are there ?

I've been with PenFed for over three years and it's been all done over the website with snail-mail followup. Never needed to phone them, let alone bother to visit our local branch.

Ironically their upstart practices have slowly siphoned our business away from Navy Federal Credit Union's brick & mortar branches.

 

[Brat]

My issue with PenFed is the lack of correspondent ATMs. First Tech is a member of the CU ATM network.

 

[Gearhead Jim]

I was going to put a CD in Ally Bank (the old GMAC), they are internet and phone only. Everything sounded great until I read several reviews where people had problems transfering money to another institution. They said that Ally got so picky about the paperwork details that it seems like gross incompetance or deliberate stalling.

We had a similar issue with a local bank, we called the person we were dealing with "The NO Lady", but we went back on her day off and got someone who was very helpful.

 

[Nords]

My issue with PenFed is the lack of correspondent ATMs.

Yep. We only use PenFed for CDs and our HELOC.

I read a snippy comment from a banker the other day that ATM use is dropping as people go to debit cards and cell-phone transactions...

 

[ziggy29]

I read a snippy comment from a banker the other day that ATM use is dropping as people go to debit cards and cell-phone transactions...

Or using the debit card at a grocery store and getting cash back. It's not as relevant now that we have accounts that rebate ATM fees, but even then it's a convenient way to save an extra stop while out running errands.

 

[In-control]

on-line banking

I have been using Bank of Internet for years! I can use others ATMs and have a limit of $8/month reimbursed fees. There CD's are ok but their checking and MM rates are more then some CD's!

You also get free checks etc.... it's all good! I am sure that there are others out there. Go to Bankrate.com and see what pop's up.

 

[smjsl]

I opened FortKnox CDs recently. Pretty straight-forward. Wire fees: incoming $3 (first place I know that charges them), outgoing: $12. Yes, I believe NCUA insurance levels the playing field. Also, I believe they have additional $250k insurance on top of NCUA, but I am under NCUA limits...

I've wanted to open at Penfed for a while myself since they have high rates often, but every time I actually needed to open a CD there was a better place somewhere else... maybe next time