To be used for any generic banking question. If there is a product-specific question, specific tags like credit-card, savings etc. should be used. If there is an entity-specific question, descriptive tags like merchant, community, consumer, small-business should be used.
9
votes
2answers
3k views
Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel?
I often see banks advertise (for accounts with fixed yearly interest, let's say 1.5%) – "interested is calculated daily, and compounded monthly".
I have 2 questions:
Why are they calculating ...
12
votes
6answers
1k views
How easy is it to open a foreign bank account via the internet?
Has anyone attempted opening a foreign bank account, if so what was your experience? how easy was it? Which country?
11
votes
2answers
784 views
As a US citizen, should I only have $50,000 in non US banks due to FATCA?
The Hiring Incentives to Restore Employment (HIRE) act was enacted March 18, 2010 with the goal of increasing employment in the US. It also included the Foreign Account Tax Compliance Act (FATCA) ...
9
votes
6answers
1k views
Should I have separate savings accounts for various savings goals?
I have read through some personal budgeting articles and saving tips. Most articles and books mention saving money for emergency funds, large purchases, etc.
Should emergency funds and saving funds ...
7
votes
6answers
515 views
How can my friend send $3K to me without using Paypal?
My friend is a paraplegic. He can't go to the bank and wire the money. He used to send money from our partnership via paypal. Now I am banned from paypal. What's the alternative? Google checkout?
I ...
6
votes
2answers
450 views
Who creates money? Central banks or commercial banks?
Which of these is a better description of money creation:
Scenario 1: Central bank creates money
Customer A deposits $10 at his bank. Customer B wants to borrow $100. The bank is in good standing ...
6
votes
6answers
459 views
Would you withdraw your money from your bank if you thought it was going under?
The Texas Ratio attempts to measure how well a bank can cover its losses on nonperforming loans. A ratio over 100 indicates the bank is in trouble.
I cross referenced the texas ratio for banks ...
9
votes
2answers
209 views
What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do?
I was reading the article Bernanke’s Twist Sharpens Year-End Anxiety Over Stimulus and In the article it says
The Fed on June 20 extended its Operation Twist program to swap $267
billion in ...
14
votes
8answers
2k views
Why is the fractional-reserve banking not a Ponzi scheme?
Operating a Ponzi scheme is a crime which I suppose has some sort of definition in the penal code or criminal law. It is a fraudulent investment operation that pays returns to separate investors from ...
8
votes
4answers
211 views
Should I switch to this high rate checking account for my emergency fund?
Okay, so I bank at a local credit union, AllegacyFCU. (Here is their rates sheet.)
Currently I have through this bank:
Daily Access Savings account with 0.2% interest
Totally Free Checking (no ...
7
votes
3answers
1k views
The difference between Islamic Banks and Western Banks
I have been doing some reading on the differences between Islamic Banks and Western Banks lately and found that the main difference is that Islamic Banks do not charge interest when they lend out ...
6
votes
1answer
1k views
Difference between a (credit union) “share certificate” and a (bank) CD?
I've seen both Share Certificates and Certificates of Deposit available. Are they the same thing? Do they have different names based on whether they are offered at a bank or credit union? Does one ...
13
votes
5answers
984 views
Cashing a fishy cheque addressed to someone else
I agreed to cash a cheque for someone I don't really know. In hindsight, this was very stupid, but now I need to figure out how best to get out of this situation.
We both endorsed the cheque, it ...
13
votes
2answers
321 views
What's the difference between credit unions and banks?
Is one better than the other?
I've noticed that national banks seem to charge more (and higher) fees. Is that just me?
11
votes
1answer
156 views
WSJ article about CFDs - am I missing something?
In this WSJ article, it comments
Traders held a net $22.6 billion in bets that the dollar will appreciate, a gain of 31% in net wagers over the previous week and the largest such position since ...
11
votes
5answers
3k views
How to store millions of dollars?
Not that I have it but most banks only secure amounts up to $100k so if you put $1M in there are you at risk of losing $900k if that bank shuts down? How do people store large sums of money, do they ...
10
votes
2answers
218 views
Why do they ask whether it is a paycheck or not in a bank?
I am getting paid with checks so each time I deposit it to my bank account they ask whether it is a paycheck or not. What difference does it make?
9
votes
4answers
3k views
Would depositing large cash amounts cause problems?
I saw an article recently where a man withdrew $600,000 USD in cash from his bank. I'm sure many folks here would advise against this move for obvious (and perhaps not-so-obvious) reasons.
My ...
8
votes
1answer
182 views
Buying checks from places besides your bank? How does it work?
I just opened a new account at Bank of America. The checks they sell aren't cheap and I heard that you can buy checks elsewhere. Does this mean that I can just buy a packet of blanket check and just ...
8
votes
1answer
185 views
What are the benefits and risks of doing your banking through a credit union, versus a bank? What's the difference?
What are the major differences to having your mortgage, credit, savings/chequing accounts with a credit union (or caisse populaire, in Québec) versus just a regular bank?
7
votes
3answers
592 views
I'm moving to another country. Where should I keep my money?
I've been working in the US for a number of years, and am shortly to return to Australia. My cash is in an online bank based in the US.
Would you recommend I move it to an Australian bank, or leave ...
5
votes
5answers
391 views
Should credit card payments be broken up into amounts smaller than $10K?
As mentioned in this answer about bank transaction reporting, a Cash Transaction Report (CTR) will be generated for deposits (or all transactions?) greater than $10K.
So, there are two parts to this ...
1
vote
1answer
142 views
Where can I place my savings in to limit my exposure to the risk of European bank failures and sovereign debt defaults?
After looking at this stunning Euro Zone Bank Stress Test tool provided by Reuters, I see the danger and the hight level of interconnections that exists among Banks in EU.
The actual scenario ...
