Ask the Banker

[greeneyes]

Add another profession to the "Ask the..." franchise!

First off, my qualifications: I work in the banking industry as a manager for one of the "giants." I handle everything from personal checking accounts to business checking accounts, consumer loans to commercial lending, CoD's, IRAs, estates, trusts, and everything in between. I'm also pretty saavy on banking regulations and why the heck we do some of the things we do.

So, if you have a question about banking, fees, loans, and everything else banking-related, throw it at me. You've got questions and I've got answers!

[dizuke]

Hello...

Any advice that you could give on this topic would be greatly appreciated. There are companies that offer the set up, for around $1,500 is this something that I can do myself for cheaper?

Have a Happy Day!

[Rodney]

I'm interested in buying certificates of deposit that are denominated in foreign currencies. Can you point me at some banks that offer these?

So far, the one outfit I can find that sells them is a web-based outfit called Everbank. I realize that there's a additional risk involved, but I'm interested. I was wondering if any other American banks offer foreign-denominated CDs. I keep hearing that Washington Mutual offers them, but calls to the local branches meet with nothing but confusion. Any advice on where to look? Everbank has a slight cheesey odor that bothers me.

[greeneyes]

Originally Posted by dizuke

Hello...

Any advice that you could give on this topic would be greatly appreciated. There are companies that offer the set up, for around $1,500 is this something that I can do myself for cheaper?

Have a Happy Day!

In my experience, there is no way around the offshore bank's fees. Typically people use these accounts as a tax haven and considering the amount of money they are moving, the benefits far outway the fees.

There are going to be set up fees no matter what; whether you file the government paperwork or they do, there will be money involved.

[greeneyes]

Originally Posted by Rodney

I'm interested in buying certificates of deposit that are denominated in foreign currencies. Can you point me at some banks that offer these?

So far, the one outfit I can find that sells them is a web-based outfit called Everbank. I realize that there's a additional risk involved, but I'm interested. I was wondering if any other American banks offer foreign-denominated CDs. I keep hearing that Washington Mutual offers them, but calls to the local branches meet with nothing but confusion. Any advice on where to look? Everbank has a slight cheesey odor that bothers me.

A thorough search of the website and a quick call to some contacts and the answer is no, Washington Mutual does not offer CoD's in foreign denominations.

I checked out Everbank's site and it says that everything is FDIC insured which is a must. What it didn't offer was a quick and dirty list of all the fees. I would call and request a Fee Schedule, Account Disclosure brochure, and a Truth in Savings brochure. These are federally mandated materials that every FDIC or NCUA insured bank should have. Take a look at the info and then decide if you think this is a worthwhile endeavor.

CoD rates are not bad right now and are climbing. For instance, I could put you in a CoD for thirteen months at 3.92% interest with 4.00% annual percentage yield - as most any nationally-ranked bank could. Will the dollar fall enough that having a CoD in Chinese Renminbi would prove the safer bet? I can't predict the future, but some serious shit would have to happen in thirteen months for that to take place.

Best of luck!

[Rippley]

Originally Posted by greeneyes

A thorough search of the website and a quick call to some contacts and the answer is no, Washington Mutual does not offer CoD's in foreign denominations.

I checked out Everbank's site and it says that everything is FDIC insured which is a must. What it didn't offer was a quick and dirty list of all the fees. I would call and request a Fee Schedule, Account Disclosure brochure, and a Truth in Savings brochure. These are federally mandated materials that every FDIC or NCUA insured bank should have. Take a look at the info and then decide if you think this is a worthwhile endeavor.

CoD rates are not bad right now and are climbing. For instance, I could put you in a CoD for thirteen months at 3.92% interest with 4.00% annual percentage yield - as most any nationally-ranked bank could. Will the dollar fall enough that having a CoD in Chinese Renminbi would prove the safer bet? I can't predict the future, but some serious shit would have to happen in thirteen months for that to take place.

Best of luck!

Like, say, a hurricane knocking over the Gulf of Mexico? Has Katrina had any effect on your previous statement? Just curious, not looking to profit from a disaster, or anything...

[greeneyes]

Originally Posted by Rippley

Like, say, a hurricane knocking over the Gulf of Mexico? Has Katrina had any effect on your previous statement? Just curious, not looking to profit from a disaster, or anything...

Actually, all of my CoD rates just went UP this week... but then again, prime also was recently raised.

Call me conservative, I still think it would be better to stay out of the foreign-denomination CoDs.

[RogueHunter65]

How do you like working in Banking? How did you get your job? What jobs and experiences have led you to your present position?

As a college student thinking about going into banking, I a little curious about the field.

[greeneyes]

Originally Posted by RogueHunter65

How do you like working in Banking? How did you get your job? What jobs and experiences have led you to your present position?

As a college student thinking about going into banking, I a little curious about the field.

I love my job and the work that I do. I also really love the company I work for. What I do NOT like about the banking industry is the damned corporate politics and unfortunately, I've experienced them at all the banks I've worked for.

Some people don't mind and are really good at that game, but it isn't for me anymore. I'm getting out of banking as quickly as I can. So I guess I'm not the best person to ask all this right now, lol.

I majored in communications at Purdue. When I got out, I worked as a teller and then three months later (after working my ass of and no, there are no "banker's hours") I became a manager.

Again, I love the work that I do. I love my clients. I love my company, they have an EXCELLENT idea of how sales and service should coexist. What I hate is that even though we are all adults and professionals, not everyone acts that way. Yes, you will find this in any industry but there just seems to be a higher percentage of asshats in the banking industry.

Best of luck!

[Marvelous Marv]

A hypothetical question...

Let's say you happen to have over the federally insured amount in an account at your bank. I assume that anything over $100k is not insured by the FDIC.

Let's further say that you have a note with an outstanding balance to the same bank. If the bank were to go belly-up, could the money you had on deposit be credited to your note, or would you get screwed twice? (In other words, would you be told, "Your money is gone, but someone has bought your note, so you're on the hook for the entire amount.")

It's likely that this is a stupid question, but I just couldn't quit wondering about it.

[greeneyes]

Originally Posted by Marvelous Marv

A hypothetical question...

Let's say you happen to have over the federally insured amount in an account at your bank. I assume that anything over $100k is not insured by the FDIC.

Let's further say that you have a note with an outstanding balance to the same bank. If the bank were to go belly-up, could the money you had on deposit be credited to your note, or would you get screwed twice? (In other words, would you be told, "Your money is gone, but someone has bought your note, so you're on the hook for the entire amount.")

It's likely that this is a stupid question, but I just couldn't quit wondering about it.

If a bank were to become insolvent, your insured funds would be paid. After all of the bank's assets were liquidated, FDIC would attempt to pay as much as possible of the remaining uninsured funds; this however, is not guaranteed.

Your deposit accounts and your notes would be treated as seperate entities; you would still be responsible for paying your note.

In all honesty, a good banker worth their salt should be able to structure accounts worth millions of dollars to ensure everything is FDIC insured. Working in Charlotte, I have many clients who at first glance may seem like they would not be able to secure FDIC insurance on all of their assets, but we find ways to accomodate all of their money.

[Anxst]

Quick question, and I'm speaking in generalities, so I realize your answer won't be very precise. I'm wondering what my chances of being able to buy a house are.

My annual income is 26,500.00 per year. My credit, while not horrible, isn't too hot. I had some bad financial decisions in my past, and then spent the last 5 years staying afloat...no credit cards, paid most bills on time, etc. However, I got married 4 years ago, and she has lots (about 4k) of unpaid medical bills in her past that have been festering for quite some time. I've never owned a house.

Even better, I don't want to pull our third into the equation, as she has unpaid school loans she hasn't been pitching money at for quite some time. So, I can't really add her 22k a year into the equation...and legally don't have to.

I'm just sick of paying rent when I could probably be buying a house for not that much more each month.

With first time homeowner type help, how bad are my chances?

[Anxst]

Special thanks to NoSoup who is answering my questions in Private Messages.

[greeneyes]

Originally Posted by Anxst

Special thanks to NoSoup who is answering my questions in Private Messages.

Sorry about the lag-time... sister-in-law is getting married.

I'm glad NoSoup has been helping you - based on his posts in the As the Loan Officer thread he seems like he would be a really good resource.

Best of luck!

[Anxst]

Lag time wasn't a problem, NoSoup just kinda jumped on it. He's specialized in that field anyway, so we'll see what happens.

Thanks, Greeneyes!

[xepherys]

Alright, here's mine:

Currently I make $72,000/year. My employer offers a 401(k) plan that I have now enrolled in. We get paid bi-monthly, and each check I take out $220 for my 401(k) (so $440/month). They match 100% for the first 3% of your salary, and 50% for the next 2%. I believe I'll be putting away roughly $8000/year into my 401(k). I have a son who is 10 and a baby on the way. I'd like to set up educational trusts for both of them.

However, after taxes, child support and 401(k), and bills, I don't really have much additional money right now. What would be the best way to start a trust for both kids? What are some options for additional investments that net a decent amount?

[JustJess]

Love these threads.

I do all the immigration work for a hospital, and we have people come in on H-1B visas and J-1 visas. Some of them are exempt from taxes or FICA, some aren't. It would be inappropriate for me to advise them on how to fill out the 8233 tax form. Where should I send them for more information? I already give them the instructions.

Thanks!

[Sho Nuff]

I have about 1500 in a TIAA cref account for a company I no longer work for. I am looking to roll it over into some sort of long term investment account. I have a federal tsp that I am contributing to at the matching limit. I am curious as to if I should roll that TIAA Cref into the TSP or start an external 401K and if I go the 401k route should I stick with Cref? Thanks.