Dear fellow early retirees, I would like to share a bad experience I run into. Recently I sold some equities and 1 CD had matured two months ago so I decided to open a high yield saving account at the Flagstar Bank advertisement of 5.5%APY until a better opportunity to invest. I opened the saving account at the Flagstar Bank and linked it with our Bank of America checking account with authorizing the Flagstar to fund the account with $130,000. A few days later, I noticed that no money were taken from the Bank of America, so I called the Flagstar to ask if the transfer was done but got no confirmation on it other than if your web page account does not reflect it, so it was not done. I set up again the transfer already from the Flagstar Bank for this amount. Next day I got a check from the matured CD account at Superior National bank, deposited it to the Bank of America and transferred set to transfer additional $100K deposit into the Flagstar Bank for the total of $230K. For the 34.5 years being a "platinum" customer of the Bank of America, I always had deposited checks available nest day after depositing, no matter amount. Because I had quite a few CDs it was not the first time I deposited temporary for a farther choice of investment $100K to our checking account and it always was available next day. However, this time the Bank of America put it on Hold for 9 business days and when all 3 deposits were attempted to be sent to the Flagstar it bounced as it went deeply below what we had there. I called immediately to the Flagstar Bank and asked to return one of $130K back, explaining it was a mistake on my part, seeing that no deposit was made in two days after authorizing it, they returned it. Yet the $230K had disappeared: neither in the Flagstar Bank or returned to the Bank of America. On my everyday calls, response was we do not have it, call B of A. B of A rep stated, we transferred money as requested. Finally, after many complaints filed to the BBB and Federal Financial Fraud Bureau, Facebook posting, I got a call from the Flagstar Bank representative, who explained to me that by some mistakes our $230,000 stuck in a filial of Federal Reserve Bank due to all of the above and since I filed a deposit return with the Bank of America, I could expect the $100K deposit made last to be returned in a few days but the $130K wait until up to 45 days. I had never had such experience and not sure if the Feds or above-named banks keep interest free our money, but this is exactly what happened.
Warning about high savings yield account opening headache I run into.
- Thread starter VFK57
- Start date
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
That seems totally messed up. Bad enough to have such a mistake, but trying to track it down with such indifference on their part would be an awful experience.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I don’t open up new accounts anymore unless I already have an established relationship with the financial institution. From your story I’m glad. Sorry you’re having to go through that.
Yesterday I had three-way discussion with the Bank of America manager of deposits and transfers and Flagstar Bank representative. The Flagstar rep explained that the deposits were in a 3rd party what does transactions for them and provided all data on how to take the money back within 1 to 2 days. Yet the B of A manager Shirly replied: "We have our procedures, and it may take up to 45 days to return the money". A few months ago, I filed complaint to the BBB against the B of A because they failed to pay their "platinum, valuable customer" bill to the AT&T, while deducting money from our account and I had to pay penalties for the reconnection and double payment to restore it. The B of A never apologized and refused even to address the matter or refund money they took from our account for the payment, what never reached the AT&T. It could be their vendetta but for us it is a nightmare.
aja8888
Moderator Emeritus
Maybe you should plan to leave B of A?
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I follow the same rule. I've had my principal account at the same savings bank for 32 years. Their main office (out of a total of four) is three blocks from my house, so I can just walk over there and talk to them if I have a problem.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Wow. I had a payment get lost in the mail twice from BofA and they were very prompt at handling it. Even calling a utility on the phone and making sure any fees were waived. And this was before I had any status as a customer other than many years. Too bad your experience has been so nasty.
Al18
Full time employment: Posting here.
I hope Shirley reply’s by Monday with an apology, your funds in their proper account and an apology. 45 days to return the money is utter BS.
The difference between a good bank and a bad bank is how they handle problems - and the BoA is doing an exceptionally bad job.
The difference between a good bank and a bad bank is how they handle problems - and the BoA is doing an exceptionally bad job.
Badger
Thinks s/he gets paid by the post
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- Nov 2, 2008
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I only have a credit card from BofA that I have been using for decades. It is one of 2 CC that we use and so far I have not had any problems. However, if it wasn't for the hoops I would have to jump through to cancel it, unfreeze our credit, and bank with another company I would never do business with BofA. Fortunately my only dealings with them is a CC. I have read too many horror stories from people who have had serious problems with them. I also have had major problems with Merrill Lynch who is owned by BofA. I will stick with my local credit union, Vanguard, and Charles Schwab.
The Cosmic Avenger
Thinks s/he gets paid by the post
Ever since I learned that they pioneered a lot of ATM fees that are now considered standard (for example, charging your own customer for using another ATM, which would be on top of the expected fee from the actual owner of that ATM charging a non-customer, or charging your own customers fees for services), I have avoided them like the plague. Unfortunately, my mother kept an account with them, and they had the gall to pressure me to open an account with them when I tried to close her account as administrator of her estate, even trying to deny me access to it at first before I persisted.
