Suggestions regarding banking for new full timers

[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6) Refrain from creating new bank relationships after your permanent domicile address is no longer valid.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.

[Barbaraok]

You need to add, do transfer via electronic deposits from one institution to another institution. Best way with new account is to set up direct deposit of a revenue stream.

Don't deposit cash, use it instead of using a credit card, etc.

Do a lot of people carry large amounts of cash?

[77Travco]

I've been with USAA for over 30 years... never had an issue. Since 1994, I've also been with NationsBank that then became Bank of America... don't get me started on those guys.
I spend all my money on strippers and beer... I just waste the rest.

[Solo_RV_Guy]

Originally Posted by 77Travco

I've been with USAA for over 30 years... never had an issue. Since 1994, I've also been with NationsBank that then became Bank of America... don't get me started on those guys.
I spend all my money on strippers and beer... I just waste the rest.

Bank of America, the B of A. We call them "Bunch of ....." (I can't use the compound word here, but think 'prostate exam').


I'm not sure how USAA can just "disappear" $10k, (they probably waste more than that on paperclips every week), but if they aren't talking to you, it's time to lawyer up.

[RonLC]

More details are necessary for us to understand what you did and what they did.

I have had USAA for over 40 years with nothing but great experiences.

[Solo_RV_Guy]

Originally Posted by RonLC

More details are necessary for us to understand what you did and what they did.

I have had USAA for over 40 years with nothing but great experiences.

His original post about banking:


https://www.irv2.com/forums/f92/bank...rs-479159.html

[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.

[tblocker]

Once again it feels like people are accusing me of dishonesty.



[moderator edit]



Yea, I guess I've been ranting. Who on here wouldn't rant if you lost 10,000 dollars. If anyone raises their hand they are more wealthy than I. And probably even less honest.



I am gone. USAA is causing me more frustration than I need. I was ALSO hoping to help others here, but I'm now done with all of that. No more forums for me.



Cheers everyone!

[HDGoose]

I've had friends in the past that had accumulated a large paycheck from working overseas in the 80s and 90s. They return to the USA and are traveling, living in hotels, or camping, and occasionally an apartment. Technically no value license or registration because they no long have a "permanent address".



Most full timers fall into the same predicament. The USA systems are not setup for that. Most folks do not realize that they are inviolation of laws and subject to arrest. Most people and communities are leery of those 2ithiut a permanent place called home. Think unsavory characters.

[Filthy-Beast]

The OP had another bank tell him they would lock his account because he didn't have a physical address on file that bank regulations require. He then opened a new account with USAA without a physical address and then transferred in 10k. I believe this tripped all the warning bells that require a bank to freeze the funds and call in the feds.


To anyone else, make sure you use a physical address, if full time, you can use the address of next of kin. Then start with small transfers.


I just opened an account with Ally with an initial deposit of $500. I still have my physical address and used that. Over the next several months I will continue to transfer in amounts well below the magic 10k number. Right before I go full time I will change to a next of kin for physical and my mail service address for mailing.

[Barbaraok]

You can do electronic transfers that are greater than $10K without triggering anything. I did several over that amount last November. Neither our bank nor our investment firm batted an eye.

[Xmcdog]

Mr Tblocker,
I just want to thank you for the heads up. You likely saved me and many others a fistful of dollars.
Stick around. I like your style.

[elite wa]

As a banker what you are doing is completely suspicious and as a bank employees are mandatory reporters it’s the same thing that I would do. There is Patriot Act, KYC, Structuring and Red Flag warnings all over the place and this is not anything that would fit into normal banking. Most banks have former FBI, CIA or treasury agents working in their fraud management departments that are specifically trained to catch fraud from their years of civil service work. Structuring is a big deal and will send up an alert so fast. It’s not illegal to do multiple cash transactions but the act of trying to avoid the $10,000.01 is. It doesn’t matter if it’s the same day, same week or every other month it will trigger a Red Flag. The Bank Secrecy and Anti money laundering acts govern this. I am not saying what you did is illegal but in 25 years of banking nothing you did would be considered normal. I can’t say what USAA is doing is right or wrong but I really don’t think it would be that much different then what any other institution would do.

[momdoc]

Our mail service provides us with a PMB as well as a physical address that we use for voting and banks. No problem.
Also NEVER make a cash deposit of 10K or more. It is an automatic trigger for the bank and IRS. Any cash deposits we have ever done are less then $9,500.