Suggestions regarding banking for new full timers

[StageCoachDr]

Yes, I know your pain. I worked for a bank for many years. Cash deposit tracking and reporting is a result of The Patriot Act. I went thru Patriot Act training every year and I didn't even work in a branch.


Monitoring and enforcement is going up every year, and yes, $10,000 is the magic number to set off tracking, but it can even be less. A teller may decide a $5,000 or $6,000 cash deposit is unusual. It can also be initiated by the back office or some AI application tracking deposits. On top of that, they are not allowed to tell you if they've initiated a tracking report.


I had a lucky night in Las Vegas a few years ago with a couple of $4,000 jackpots which I deposited the next morning. I'm sure a tracking notice was initiated and I worked of the bank where I deposited the money. Nothing came of it, but it probably happened. (I did have the W2-Gs to prove my wins).


Credit cards and debit cards are good, but you should instruct your bank to send you an email anytime they are used to help avoid fraud. And always keep you bank(s) informed of your travels and locations.

[psyop]

QUOTE: The last reply draws me back.

I understand that there are laws. But do the laws require the bank to

1) call me a criminal
2) refuse to tell me why
3) Seize my money for what appeared like indefinitely
4) Refuse to answer any questions what so ever
5) Tell me there is no one else I can talk to

6) Tell me there is nothing else I can do.



In my mind, the only reason they would do these things was because they were preparing for charges.



Can they not say
You tripped a trigger that mandates that we must temporarily lock the account and further investigate your identity. The account will be unlocked when we've completed the investigation if we determine that this has been an error. This investigation is required by the federal government.

——————
My comments:

I work in the financial industry as well and, to add some direct responses to your questions that hopefully benefit everyone:

1: no
2: yes
3: yes, based on the filling of a suspicious activity report linked to account history and other indicators, but this hold is done at the direction of the Feds not the bank
4: yes
5: yes
6: yes

To your other questions about “can they not say”, that is correct, they are forbidden by federal law to offer any information.

It sucks, but it’s not the bank’s fault as they are caught in the middle. It is purely post-911 money laundering and terrorism supporting financial activity laws that created this set of unfortunate circumstances.

Sincerely

[BillOD]

Tblocker's issues with USAA can, I think, be explained. Money-laundering regulations, which have been in place for about 20 years, are designed to stop drug money and terrorism funding from being "washed" into legitimate cash flow. I've had to deal with these regs and laws for the entire time I've been a financial advisor.

Financial institutions are required to report cash contributions exceeding $10,000. Reporting DOES NOT cause the depositor to lose the funds unless inquiries indicate the money came from illicit activities. The money may be frozen until cleared by the inquiry.

Bankers who get involved with this sort of transaction are just doing their jobs. However, if you truly don't have access to the funds, USAA (and probably most banks) has an executive trouble-shooting team that works for senior leadership to deal with customer complaints. I recommend you insist on elevating this issue to them.

If that doesn't work, file a complaint with the Texas Dept. of Banking Regulation, which will force them to respond.

I've had a USAA account for over 40 years. They've grown to a big bank with big bank bureaucracy. I've complained for years about their loss of the military family mindset. Occasionally, I talk to a staff member who still operates the old-fashioned way, but most of the time, the employee I'm talking with gets a lecture about how to treat customers and the military family culture.

Having said all that, I still bank with them because they're the least problematic of the big banks. And, when we suffered an expensive breakdown exceeding our resources, they worked a loan for us in 24 hours.

Do I love USAA? Not particularly, but there are a lot of big banks that are much worse.

[NoSlack]

Originally Posted by Xmcdog

Keeping it under my mattress is sounding better with every post.

Maybe I can buy something that appreciates, like soap.

This is serious guys and I think mr Tblocker did us a service that has been endorsed by our banker friend. Basically we have no rights to our hard earned money when we deposit it in a bank. Scary stuff.

Invest in toilet paper because when you are quarantined for months that is something you don't won't to run out of unless you have a lot of cash laying around.()

[POPPASMURF]

When my mother was having trouble with government and her cash, I got her to put all her cash into travellers cheques. Cashable at most places and pretty secure.

[Denis RV]

Originally Posted by tblocker

Noting my earlier banking post here...


The suggestions I'm about to give here are the result of possibly having lost $10,000 with USAA. I've also studied this on the Internet many hours to try to figure out what happened to me.



Anyone considering going full time and using a PMB address should have their banking set in stone before starting full time.



My suggestions follow:
1) Bank with at least two banks and better yet three.

2) Be aware of the "Know your Customer" bank rules and get the address thing right.

3) I suggest 3-6 months ready living expenses. if you've credit cards then having this in money money market might be OK.

4) Know this, the instant you deposit money into a bank that money ceases to be yours. This is NOT crazy conspiracy, it's fact!!!!

5) Though I never did this, try not to do anything bank related with large sums of cash
6) Refrain from creating new bank relationships after your permanent domicile address is no longer valid.

7) Have a few hundred in cash hidden somewhere.

8) Don't ever use debit cards. Ever. That's your money. Use credit cards. Besides, you can make a little money from credit cards.



I've studied many hours trying to figure out how I managed to lose so much money by simply dealing with a bank. But I repeat, I am not alone.



I found several people who had their accounts ceased by USAA, just as mine was ceased.



I found many reports of banks handing over large cash deposits to the IRS. In many cases the owners lacked the funds to fight and lost their money. This is all perfectly legal thanks to 911. I found one woman who reportedly lost her business.


I am thinking about putting money in US savings bonds or something like that. But I really want this money to be liquid and safe as possible (FDIC safe)


Last but not least, steer clear of USAA. I am not the only one they've screwed this way. Note that they were recently sued for millions for account handling abuse.



Thanks, just trying to help. And safe travels.



Oh yea, the talk of structuring. Yea, it's real. And it is shocking. Two cash deposits exceeding 10,000 can be linked and thereby illegal. I rolled my eyes too when I first heard it here.

I'm not going to go on but getting a attorney is not needed if you got a good accountant they can file with the IRS to retrieve your money. They only need to show that is was money from your account or ware it came from that was legal money. They only doing there job as by rules and your not the only person that has gone through this.
Hope it helps
Now as for forums this is a great one it has helped so many.

[DocHaley]

Originally Posted by tblocker

Noting my earlier banking post here...


The suggestions I'm about to give here are the result of possibly having lost $10,000 with USAA. I've also studied this on the Internet many hours to try to figure out what happened to me.



Anyone considering going full time and using a PMB address should have their banking set in stone before starting full time.



My suggestions follow:
1) Bank with at least two banks and better yet three.

2) Be aware of the "Know your Customer" bank rules and get the address thing right.

3) I suggest 3-6 months ready living expenses. if you've credit cards then having this in money money market might be OK.

4) Know this, the instant you deposit money into a bank that money ceases to be yours. This is NOT crazy conspiracy, it's fact!!!!

5) Though I never did this, try not to do anything bank related with large sums of cash
6) Refrain from creating new bank relationships after your permanent domicile address is no longer valid.

7) Have a few hundred in cash hidden somewhere.

8) Don't ever use debit cards. Ever. That's your money. Use credit cards. Besides, you can make a little money from credit cards.



I've studied many hours trying to figure out how I managed to lose so much money by simply dealing with a bank. But I repeat, I am not alone.



I found several people who had their accounts ceased by USAA, just as mine was ceased.



I found many reports of banks handing over large cash deposits to the IRS. In many cases the owners lacked the funds to fight and lost their money. This is all perfectly legal thanks to 911. I found one woman who reportedly lost her business.


I am thinking about putting money in US savings bonds or something like that. But I really want this money to be liquid and safe as possible (FDIC safe)


Last but not least, steer clear of USAA. I am not the only one they've screwed this way. Note that they were recently sued for millions for account handling abuse.



Thanks, just trying to help. And safe travels.



Oh yea, the talk of structuring. Yea, it's real. And it is shocking. Two cash deposits exceeding 10,000 can be linked and thereby illegal. I rolled my eyes too when I first heard it here.

If you did not know that any deposit of $10k or more and now it seems $5000 or more is traced by the IRS then where have you been living? Cash is never a good idea to deposit. Get a cashiers check or a money order or have a friend write you a check for whatever it is and be certain the 'memo' area of the check notes 'repayment of principal' and you'll be ok.
If you deal with a lot of cash, get a safety deposit box and slowly move your cash (just 2 or 3 thousand at at time into a credit union) once a month.


I've been with USAA since 1982 and never had an issue and was a medium size MEP contractor that had many cash deposits. I just kept them within reason.


No reason to complain. Just change how you do business and go somewhere else like a credit union.


CYa

[turf1996]

I have been banking and using insurance with USAA for over 35 years and had only great experiences. Had auto and housing claims , transferred money, moved 8 times. Only good prompt service.

I wouldn’t carry a lot or cash. Cards work almost anywhere and you can do banking / bill pay online.

[Roadwarrior7]

Originally Posted by wildtoad

This looks like a post just to vent and has little to no value. Perhaps if the OP told us how he may have lost $10k to USAA would be helpful. Banks are required to report large cash transactions so don’t blame the banks.

I don't see it that way. I think this post has opened my eyes to some important banking issues that can happen to full-timers. I was not aware how touchy a bank might be if you don't have a permanent address.
Did you already know all this Wildtoad?

[Barbaraok]

People, he didn't make those deposits by cash. They were electronically moved between accounts.

[Solo_RV_Guy]

Originally Posted by Barbaraok

People, he didn't make those deposits by cash. They were electronically moved between accounts.

Hi Barbara-

This is what happens when folks read the first 4 or 5 posts and then reply... I realize that our forum users have so much to do, see, and experience that they might not have time to read a whole entire thread... but they should. So many times the questions are answered, the speculation no longer necessary, etc, but that doesn't stop folks for continuing down a path already rejected or shown to be wrong.

The policy here is that we should not discourage folks from participating no matter how redundant or wrong, so I've had to learn to let some thing go...

[RussLatimer]

I would also caution anyone who is eligible for USAA membership to carefully assess alternatives for vehicle insurance - especially if your vehicle has a few years on it. I have been a USAA member for over 46 years, insuring multiple vehicles (including an RV), several houses, and high valued personal items. The manner in which USAA handled a recent claim for my son (also a USAA Member) was - in my opinion - dishonest, disrespectful, and certainly not supporting the military service members and their family. Enough said.

[VagabondDoug]

I have had the bank I do most of my business with lock up an account that hadn't had any activity. They say it is a state law.. Any account that doesn't have activity for a year is to be locked and then at some point they have to transfer that money to the state.. I don't know if all states use these rules but Oregon does so I suspect most do.



I have had to deal with this 3 times over the years. So now I set up automatic transfers from one bank to another so that they all have automatic deposits every month.. Just a circus but one that I feel is necessary.



Oh, I don't really trust the banking system. I know but I have had issues with them over the 60 years I have had accounts. They can do all kinds of things, including locking your accounts, transferring money to the US Treasury or State without even notifying you. Block your ATM card and or CC. I am a good citizen and always pay my taxes but banks and government have rules that benefit themselves much more than you or I. Then there is a great possibility of this next great financial crisis to take some of them down.. And that means loss of access while they re-organize. It could be as bad as the 1930's. Yes it could. There has never been this much debt in our system. More than then, more than 2000 and more than 2009. There is no such thing as a free lunch. You can not borrow your way to prosperity by spending the borrowed money on consumption rather than investing in the future. I have cash, gold, silver and 4 separate banks. I have a safe in my RV. Nice to have a secure place to put things.. Like the keys and back up hard drives and money..



I say, why put all your eggs in one basket and then just hope no one trips you up on your travels.. So I try and cover all contingencies. I have multiple credit cards and multiple ATM cards and multiple bank accounts. This attitude has kept me and my wife from ever being stranded.. (Knock on Wood!)



It works for me as I am more of a plodder than a gambler. When traveling in questionable places I wear a money belt and carry a throw away wallet too. Being prepared for the bad things makes me not have to worry much about them.



My main bank is a regional bank (Umpqua) that gives me free ATM even overseas. Free checking and no service charges at all. I have been traveling for 40 years. Probably be staying home for a while now though. Glad I have a home this year away from the crowds. As an older guy, I don't need to be sick with a respiratory virus that can kill me. Even touching the fuel handle at a gas station could give it to me. Seems like a good year to just hang out and do some gardening.

[FredV]

I haven't dealt with a bank for years until I have had to handle a disabled relatives finances recently. Their bank has very poor customer service and their website doesn't work. We have been using a Credit Union for our finances for almost 40 years and would bury our money in the backyard before dealing with a bank.