241

Absolute scam. Any time anyone asks you to open a bank account so they can send you money and then you have to send some portion of it back to them, it's a guarantee that it's a scam. What happens is that your dad will deposit the check and transfer it to this woman, then the check will bounce (or turn out to be fake altogether) and your dad will be on the ...


102

The other answers describe why this is highly likely to be a scam. This answer describes why you don't want to get involved, even in the unlikely case that it isn't a scam. I'm describing this using US law (which I'm not particularly familiar with, so if I go astray I'd suggest others fix any flaws in this answer), but most other countries have similar ...


99

Yes, it is a scam. Think about it: Why would a stranger offer to give you money? Why would she need you to pay her own employees? She wouldn't. It is a scam. You have more to lose than just the $25 that is in the account. Just as has happened to your dad before, you will be receiving money that is not real, but paying real money out somewhere else. One ...


74

Don't do it. If it's not the classic scam described in Daniel Anderson's answer, then it's probably money laundering. In that case, the woman would actually wire you money, which you have to wire to someone else she names. This is done to enter illegally gained money into the regular money circulation, hiding the trail. If this is the case, you would have ...


43

Yes, this is a scam. Your instinct was correct, and you should not engage with this person further. Scam artists use other people's bank accounts to move money around from scam to scam. Even if you give her access to a bank account with no money in it, that bank account will be in your name, and the scam artist will use it for illegal activity in your ...


32

This is a scam, I'm adding this answer because I was scammed in this fashion. The scammer sent me a check with which I was to deposit. When the money showed up in my account, I would withdraw the scammer's share, and wire the cash to its destination. However, it takes a couple days for a check to clear. Banks, however, want you to see that money, so they ...


28

The answers here are all correct. This is 100% scam, beyond any reasonable doubt. Don't fall for it. However, I felt it valuable to explain what would happen were you to fall for this. It's not all that hard to understand, but it involves understanding some of the time delays that exist in modern banking today. The most important thing to understand is ...


21

Nope. Credit Unions are for the customers. Since the customers own them, the credit union does what is best for the members. They aren't giving you money, they are loaning it to you for for interest. Furthermore then judged you like any other bank would. High horse moment: I believe the only reason you have to open an account, is because the banking ...


18

Your instructor's numbers do not seem to have any basis in current reality. At this page you can see a comparison of interest rates offered by banks and credit unions. In the most recent table for June 2014, banks paid an average interest rate of 0.12 percent on savings accounts, while credit unions paid an average of 0.13 percent. If you look back ...


18

You just use the compound interest formula: Principle * (1 + Rate / Time) ^ Time For Cell C2 you want this formula: =B2*(((1+(D$1/360))^(C$1-$A2))-1) Column A is deposit date Column B is deposit amount Cell C1 is today's date Cell D1 is the annual interest rate Most savings accounts that I know of compound interest daily and credit earned interest ...


15

Credit unions are mutually-owned (i.e. customer owned) financial institutions that provide banking services. They take deposits from their members (customers) and loan them to other members. Members vote on a board of directors who manage operations. They are considered not-for-profit, but they pay interest on deposits. They get some preferential tax ...


11

100% scam. Run away. If you have already given the bank account, inform the bank and close the account. Else just close the new account opened. Do not contact the scammer or reply back.... Just ignore ... Don't read any of scammer email, they are very convincing in why it's right and why it's not a scam.


10

Credit unions require you to open an account because of their history. A credit union is just that: a union. Only instead of a union of workers collectively bargaining for better pay or worker's comp, they are lending each other money. They are chartered to offer their services to members of the union, rather than the public at large. For that reason, ...


10

​Estimated Start-Up and Operating Costs in Chartering a Credit Union notes in part: Given the significant costs involved, most groups seek grant money and non-member deposits (if pre-approved for the low-income designation) to help subsidize the pre-chartering costs and annual operating expenses. Thus, in forming the union there would be the money ...


10

It's required by law. 12 USC 1759 (b) requires that membership in a credit union be limited to one or more groups with a "common bond", or to people within a particular geographic area. For lots more gory details on how this is interpreted and enforced, you can read the manual given to credit unions by the National Credit Union Administration, which is ...


9

The purpose of taking a "secured loan" is to build credit. This might be done by someone who had a bad stain on their credit history such as a bankruptcy or foreclosure, or possibly by someone just out of school (presumably with few or no student loans),and no credit history. Not everyone needs to, or should do this, however. The advantage for a borrower is ...


9

It's a scam because of the intersection of the following things: entirely online. This allows them to use data they create, such as all the forged* proofs they sent you. they want to do the financial transacations on their terms, not yours. I would give them my email and tell them to send paypal. They want to use a bank. wanting you to violate common ...


8

Having looked into SoFi loans myself, I have found a few drawbacks. It may still be worth it overall to grab a better rate, but if a student is going from federally guaranteed loans to private loans, then some of the benefits will go away as well. This is part of the reason private loans may present such a cost savings, since the debtor is ceding certain ...


8

The "Future Value" function does this. =FV(rate, number_of_periods, payment_amount, present_value, [end_or_beginning]) For example: =FV(2%, 12, -100, -400, 0) Note that the payment_amount and present_value should both be entered as negative numbers, otherwise it outputs a negative value See the Google support article for more info and related functions.


7

This is either laundering money or laundering non-money. All the other answers point out how a cheque or bank transfer will take days to actually clear. That is a red herring! There are lots of ways to illegally transfer real money out of existing accounts. Stolen cheque books, stolen banking details (partly in connection with stolen smartphones and ...


7

If it's real, it's illegal. She needs someone to be a middle man who transfers money and doesn't ask questions. The list of possible reasons should be plenty obvious and range anywhere from fraud to terrorism. There are thousands of ways to get already transferred money back from your account. If the source of the money is some kind of fraud that's only ...


7

0.250% of what? Because $100 x 0.25% = $25. How am I getting $0.02 a month? You're confusing "25%" (twenty-five percent) with "0.25%" (one quarter of one percent). Your credit union is making interest payments twelve times per year. Your yearly interest rate is 0.25%. Divide that by 12 to give the monthly interest rate: 0.0208333%. So, if you have $100 in ...


6

No. There's no inherent reason to link the place that you bank with any other financial service. There may occasionally be benefits; for instance you can sometime get lower rates on mortgages or loans by having a a checking account with an institution. Or perhaps it'll be easier for you to make a same-day payment on a credit account. There could be some ...


6

If his credit union participates in the national Co-Op, then he will be able to withdraw money at any participating credit union. He could just bring cash a check out in his name, just like he would at home.


5

Credit Unions turn a profit by lending money at a higher interest rate than their savings do, just like banks do. It is an amoral feat, completely parallel to any moral weights you have assigned to "the system". If the most favorable circumstance is you receiving access to capital, then you can easily achieve that with zero reservations about the system ...


5

There are 2 credit unions in the Metro NY area that are open to everyone: Montauk CU, 111 W. 26th St, NYC Melrose CU, 13930 Queens Blvd, Briarwood. You might also want to check out aSmarterChoice.org to see if there are other credit union options based on where you live, work, worship & more.


5

I can see that building credit is a valid reason. I would also suggest another scenario, when you have locked up money in long-term savings, with a substantial penalty for early withdrawal. If you suddenly needed money then you might save money by borrowing against the long-term deposit rather than pay the penalties. This is especially true if you needed the ...


5

In practical terms, these days, a credit union IS a small "savings and loan" bank -- the kind of bank that used to exist before bankers started making money on everything but writing loans. They aren't always going to offer higher interest and/or cheaper loans than the bank-banks, but they're almost always going to be more pleasant to deal with since they ...


5

Find out if your old credit union participates in the "shared branch" network. If so, you can perform many/most banking operations by "borrowing" the offices and staff of other participating credit unions. Most of the benefits of a national b, while retaining the advantages of credit unions. (Most of my own operating cash is in a credit union whose nearest ...


5

Well, all of the previous answers already mentioned the upcoming scam and danger situation for your financial position. I thoroughly read all answers and wanted to add a few more lines on it. Cort Ammon) already shows details of it. Any kind of financial transaction involving a complete stranger is the first big scam tag that shows up and this should always ...


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