quote:
This may be a dumb question. But how do I know I’m not getting tricked with these various online banks? Don’t want to send a large sum of money to some random scam.

If you have any hesitation, just stick with the ones that are major names (Cap 1, Ally, Synchrony, CIT, etc.) and most of all, don’t click on any suspicious links that appear in your email or other places (no matter if it’s a brick & mortar or an online bank).

quote:
Maybe I’m old school but I feel comfortable driving up to a bank that says FDIC insured out front.

A friend of mine’s wife feels that way too. Only in her mind, “her” money is kept in a safe at that particular branch. I’ve talked to her about her fears, but after a two hour “lesson” about how treasury securities work, I no longer have conversations about money with her. No need to offend someone I otherwise like. But don’t let an irrational fear keep you planted in a comfort zone that’ll cost you money.

2 ...

Report Post

Posted by GeauxTigers123

Member since Feb 2007

1360 posts

Posted on 6/17/23 at 11:31 am to Jag_Warrior

I get what you are saying, I’m just Leary of online entities I haven’t heard of (even though they are likely real legit things). Meaning like how do you know which are legit online banks?

This post was edited on 6/17/23 at 11:32 am

1 ...

Report Post

Posted by Jag_Warrior

Virginia

Member since May 2015

4126 posts

Posted on 6/27/23 at 12:53 am to Jag_Warrior

quote:
A friend of mine’s wife feels that way too. Only in her mind, “her” money is kept in a safe at that particular branch. I’ve talked to her about her fears, but after a two hour “lesson” about how treasury securities work, I no longer have conversations about money with her. No need to offend someone I otherwise like. But don’t let an irrational fear keep you planted in a comfort zone that’ll cost you money.

Kind of an unfortunate follow up to my friend’s wife. My pal called me this weekend and said that the wife was objecting to him opening a 7 month CD with Atlantic Union that was paying 5% APY. He was going to do an online transfer from their credit union and she’d heard about scams, hackers… and probably monsters hiding under the bed at night. Plus, you know, all those banks going under recently. Gave him so much irrational grief until it turned into an argument and then he called me.

Right after they sold their house, he let her make the deposit into their credit union. She was supposed to split up the funds so that they’d have two accounts (the funds totaled just a little over $500K). She didn’t do that. She put the entire sum into one joint account… thinking that there’d be less chance of anything happening to the money if it was in just one account.

I told him to (calmly) explain FDIC insurance as well as NCUA insurance to her, let her read about it on an official site… and reduce the amount to what is insured no matter what they eventually decide to do.

She really is a nice, sweet woman. Works in IT for a major company. But on money matters and rational decision making…