Category Archives: Banking

Remote Deposit is Coming to ING Direct in Spring 2012

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I got a fantastic email from ING Direct today. If you don’t know, ING Direct is being acquired by Capital One. Not everyone is ecstatic about the change. After all, who wants to be part of a big bank? One of the things I love about ING Direct is their excellent customer service, which many big banks lack.

In today’s email to customers alerting them to the change (hint: not much is changing, at least in the short-term), there is an interesting nugget about a big change that I’ve been waiting a long time for.

Coming in Spring 2012, ING Direct customers will have access to CheckMate, their new remote deposit service. This means customers will be able to deposit checks to their ING Direct accounts from their computers or mobile devices.

I’ve been waiting for this feature for a long time now. It was promised about a year ago, but I assumed that getting acquired by Capital One would push off this much anticipated service even further. However, they pleasantly surprised me this time, and having the ability to do all my checking from the comfort of my own home is a huge plus.

Remote Deposit will complete ING Direct as a bank for me. A few months ago, they allowed people to get paper checks instead of having to mail them in. They are so close to becoming a bank I can use full time.

I’ve wanted to close my Bank of America account for a long time now (they only have one redeeming quality), but I didn’t have a convenient way to deposit checks. When this service arrives sometime in the next few months, I don’t think I’ll have a reason to keep my Bank of America checking account anymore (and I definitely don’t have a BOA savings account!).

While ING Direct has been my primary bank for over 2 years now, it hasn’t been my only bank. I’ve had to go through the lengthy process of depositing a check at a Bank of America ATM, transferring it to my ING Direct account, and waiting several days for the transfer to clear. Waiting several days for your money isn’t ideal, so this is much welcome news for me.

Readers, am I silly for being this excited? What’s your favorite bank perk right now?

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Does Your Bank Look After You?

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The banking industry offers a wide range of different consumer current accounts and each of them will be slightly different. In the US however, most everyday accounts fall broadly within five categories and these offer different pros and cons depending on the customer’s own individual circumstances.

A checking account is the most basic and traditional type of the current accounts available and uses checks primarily for withdrawing money. You can pay bills, buy things and give money to anyone you like and use a check to transfer money to a bank account held with another financial institution.

Usually, account holders are free to make as many withdrawals and deposits as they like, either via a branch or an ATM.

These types of basic account are ideal for every day money management and for carrying out transactions throughout the course of a month. They will offer easy access and may even have additional incentives such as promotional joining rates or offers, or preferable rates on tied products with the same institution.

However, their interest rates are likely to be very low and overdrafts and fee rates should be checked and compared carefully against other providers.

A savings account is a bank account that also allows deposits and withdrawals, but these may be set at an annual limit. The point of a savings account is primarily to deposit money in it and allow it to grow, with the benefit of interest payments over time. A savings account holder can’t access their money with checks, although many banks allow transactions to be managed via ATMs.

Another bank account is the money market account. It offers interest at higher rates than with checking and interest-bearing savings accounts, however they generally require a minimum balance to be held on the account, which tends to be higher than with other checking or savings accounts.

Withdrawals are also limited to six a month, on average and a maximum of three of these can be done by check.

Time deposits are also known as certificates of deposit and are accounts where the account holder deposits money into the account and agrees to leave it in there for a certain amount of time, in return for a higher rate of interest than with other accounts.

Some institutions allow interest payments to be withdrawn during the term as long as the principle isn’t touched, but others will charge penalties, especially if the principle fund is withdrawn before the end of the specified term.

There are also no frills basic accounts that avoid the high fees that can come with some bank accounts. These tend to be limited for certain low amounts of deposits, withdrawals and checks within a single month and generally, interest won’t be paid.

Increasingly, many bank accounts are also offering online banking, which is a bonus for customers who find it difficult to visit a branch in person. These accounts sometimes offer better interest rates and bonuses too, thanks to their lower operating costs.

With all current accounts, it’s worthwhile doing a comparison of what’s available before opening up a new account. Use a price comparison site or speak to an independent advisor to find out what’s right for your individual circumstances.

Look beyond gimmicky and promotional offers on current accounts and find the underlying costs and benefits that make up the account – interest fees on credit balances, fees on transactions or penalties and the specifics that govern how you can access your money and when.

It’s also very important to make sure your credit record is strong so that you can access the best bank accounts. Those available to people with poor credit ratings tend to be less attractive in general and with stricter provisions on withdrawals and overdraft facilities.

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ShopSafe: Bank of America’s One Redeeming Quality

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There are plenty of things not to like about Bank of America: Their customer service is terrible and they’re going to start charging $5 per month for debit accounts. The bank even haunts my dreams.

Well, I have good news for all you people who are hanging onto some hope that Bank of America isn’t all bad. They have one awesome feature associated with their credit cards that gives users an extra layer of protection when shopping online.

SafePass generates a temporary credit card number for you to use when making online purchases. The number is linked directly to your real credit card account but keeps your real card number protected from people who may be trying to steal it.

It seems like every few weeks another company is sending out a letter warning of hackers gaining access to your account and credit card information through their system. Well, this will protect you from those hackers getting access to any information they can use. The number would be useless to them.

For those who are hesitant to purchase online in general or from a certain store specifically, this helps reduce fraud and gives you confidence that your most important information will be safe.

Here’s how to use ShopSafe:

1. Find a product online as you normally would, and when it’s time to check out:

2. Sign into your Bank of America credit card account and choose ‘Use ShopSafe’ on the right side.

3. A popup will load and give you three options:

  • “Create a New ShopSafe Number” – Use this to start a new purchase
  • “Create a New ShopSafe Number for Recurring Payment” – this is great for magazine subscription and other subscriptions that you may not want to renew
  • “View All Active ShopSafe Numbers” – you can close the number after it’s used or view purchase activity

4. Enter the security code from the bank of your actual credit card (required for verification)

5. Set your maximum spending ammount and the length of time the number will be valid

6. A credit card will be displayed for you with your settings. Use that information to make your purchase online and you’ll be all set!

I’ve tested it out and SafePass is really easy to use and has some very practical uses. I don’t use it all the time (I trust Amazon and Google with my information and don’t want to constantly have to change my credit card information with them when the temporary card numbers expires), but if I’m shopping at a merchant I’m unfamiliar with or as a one-time thing, it’s worth the extra minute to help protect my security!

Readers, do you use temporary credit card numbers? Would you feel more comfortable purchasing online if you did?

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Activate Your Bank of America 3% Cash Back on Gas

Written by in Banking, Credit
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Consumerism Commentary posted last week about Bank of America’s 3-2-1 cash back promotion for their credit cards. Here’s how it works:

One their cash back cards, you get 3% cash back on gas, 2% cashback on groceries, and 1% cashback on everything else.

Currently, I have a Bank Americard Cash Rewards credit card, and I have been getting 1% on everything, so an additional 1-2% sounds fantastic to me!

To top if off, if you deposit the cashback to one of your Bank of America accounts, they’ll give you a 10% bonus. For example, if you’ve got $100 in rewards coming to you, they’ll add another $10!

This is only valid for the first $1,500 in eligible grocery and gas purchases each quarter, but that’s a lot more than I typically spend in a quarter, so I won’t come close to hitting those limits.

It sounds too good to be true, so I called and asked why everyone wasn’t converted over immediately. The only drawback I found was that with my current card, when I reached $300, I could cash out for a 25% bonus ($75 extra on top of my $300 in rewards).

I’m not at that level, and I won’t be for many months and possibly years, so I decided now was the right time to activate the feature and start saving on gas!

One thing I didn’t like was that I had to find out about this promotion via another blogger’s post instead of receiving an email from Bank of America letting me know this is an option. So for all of you who have Bank of America credit cards, call up and ask to opt in!

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