Questions on BankDirect, now Bask Bank (consolidated)
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#1
Original Poster
Join Date: Aug 2009
Posts: 510
Questions on BankDirect, now Bask Bank (consolidated)
I have a few hundred thousand dollars in a money market account earning just .7% at the bank I need the cash liquid because I plan to buy a house in the next six months to a year. Here are some questions I have about bank direct, hopefully someone can answer whichever ones they know the answers to:
Is the money market account that pays .1% the best deal for me or should I open a checking account? I assume both are free?
How does one fund the account with such a large amount as I have?
Is it easy to close the account and get the funds I need on short notice? Any fees for that?
Wishful thinking here, but can the miles go to somebody else, that is not the account holder? Or if a joint account can the miles be split equally among the two accounts?
On the account opening page it says "Note: Limit 2 Mileage transaction accounts per customer." What does this mean?
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MODERATOR'S NOTE
If you need a BankDirect referral, please do not post to this thread. Please post here instead:
http://www.flyertalk.com/forum/ameri...solidated.html
Additional links:
BankDirect AAdvantage Mileage Program: http://www.bankdirect.com/programs/aadvantage.aspx
BankDirect AAdvantage FAQ: http://www.bankdirect.com/programs/aafaq.aspx
dstan
AA Forum Co-Moderator
Is the money market account that pays .1% the best deal for me or should I open a checking account? I assume both are free?
How does one fund the account with such a large amount as I have?
Is it easy to close the account and get the funds I need on short notice? Any fees for that?
Wishful thinking here, but can the miles go to somebody else, that is not the account holder? Or if a joint account can the miles be split equally among the two accounts?
On the account opening page it says "Note: Limit 2 Mileage transaction accounts per customer." What does this mean?
---------------------------------------------------------------------------------------------------------
MODERATOR'S NOTE
If you need a BankDirect referral, please do not post to this thread. Please post here instead:
http://www.flyertalk.com/forum/ameri...solidated.html
Additional links:
BankDirect AAdvantage Mileage Program: http://www.bankdirect.com/programs/aadvantage.aspx
BankDirect AAdvantage FAQ: http://www.bankdirect.com/programs/aafaq.aspx
dstan
AA Forum Co-Moderator
Last edited by dstan; Apr 28, 11 at 1:02 pm Reason: updated mod note
#2
FlyerTalk Evangelist
Join Date: Dec 2003
Location: STL
Programs: AA 2MM, AS MVP Gold, Hilton Diamond
Posts: 12,966
I have a few hundred thousand dollars in a money market account earning just .7% at the bank I need the cash liquid because I plan to buy a house in the next six months to a year. Here are some questions I have about bank direct, hopefully someone can answer whichever ones they know the answers to:
Is the money market account that pays .1% the best deal for me or should I open a checking account? I assume both are free?
How does one fund the account with such a large amount as I have?
Is it easy to close the account and get the funds I need on short notice? Any fees for that?
Wishful thinking here, but can the miles go to somebody else, that is not the account holder? Or if a joint account can the miles be split equally among the two accounts?
On the account opening page it says "Note: Limit 2 Mileage transaction accounts per customer." What does this mean?
Is the money market account that pays .1% the best deal for me or should I open a checking account? I assume both are free?
How does one fund the account with such a large amount as I have?
Is it easy to close the account and get the funds I need on short notice? Any fees for that?
Wishful thinking here, but can the miles go to somebody else, that is not the account holder? Or if a joint account can the miles be split equally among the two accounts?
On the account opening page it says "Note: Limit 2 Mileage transaction accounts per customer." What does this mean?
2. I funded my account with a check. Did the application online, then sent in the check.
3. You can get the funds by writing a check. If you remove all the funds, you can cancel the account online.
4. My account pays the miles to my wife's AA account. Whether this can be done with an unrelated party is beyond my knowledge.
5. I think the limit of 2 mileage accounts is because some people might want to open multiple accounts to get around the FDIC insurance limits. Just two to a customer.
#3
Join Date: Feb 1999
Location: Denver CO
Posts: 3,675
I funded my initial Bank Direct deposit with a check. I then set-up a link with my regular bank to do ACH transfers, which are free at my bank. With ACH, I can send funds to/from Bank Direct and my regular bank on a next business day basis. My regular bank holds funds for 3 business days. So all in, it takes about 4-5 business days from when I start a transfer to have cleared funds in my regular bank.
I haven't tested this with Bank Direct using large amounts but I see no reason it would not hold up.
I haven't tested this with Bank Direct using large amounts but I see no reason it would not hold up.
#4
Join Date: Jan 2006
Location: Merced, CA
Programs: Lifetime Gold AA, Gold Delta, Gold Starwood, Silver UA, Silver Hyatt, etc.
Posts: 284
I've transfered large amounts also, no problem.
I funded my initial Bank Direct deposit with a check. I then set-up a link with my regular bank to do ACH transfers, which are free at my bank. With ACH, I can send funds to/from Bank Direct and my regular bank on a next business day basis. My regular bank holds funds for 3 business days. So all in, it takes about 4-5 business days from when I start a transfer to have cleared funds in my regular bank.
I haven't tested this with Bank Direct using large amounts but I see no reason it would not hold up.
I haven't tested this with Bank Direct using large amounts but I see no reason it would not hold up.
#5
Join Date: Nov 2001
Programs: UA 1K, AA EXP, DL Plat,Hyatt Diamond, SPG Plat, Marriott PP, National EE,Hertz PC
Posts: 670
If you're worried about FDIC limits and limitations on number of accounts, Guaranty Bank also offers an AA mileage account, which currently pays 0.10% right now with same 1 mile per $10
#6
Join Date: Jan 2006
Location: Merced, CA
Programs: Lifetime Gold AA, Gold Delta, Gold Starwood, Silver UA, Silver Hyatt, etc.
Posts: 284
Guaranty Bank
Guaranty Bank was bought out, Guaranty Bank has a seperate thread also. You are allowed two account at Bank Direct so unless your talking over $500K your ok.
#7
Join Date: Apr 2000
Location: Fort Myers, FL
Programs: Hilton Gold, SPG & IHG Plat, & every airline program that I can join
Posts: 2,278
Guaranty bank is currently being taken over by another bank and has suspended new accounts for a bit of time. I love BankDirect. It is a brainless way to get alot of AA miles every month without having to keep moving money around or using credit cards for coins, ect (which I still do of course). Since I am a seasonal business, I put all our excess cash for opening next season into the account. Checking pays squat in interest, but I figure my current 14K miles a month makes up for it. I just opened 2 accounts at UFB Bank for 19K in AA bonuses, but it will take a year and deals with Direct deposits ($5 from ing) and bill pay, a hassle, but only 3K in deposits.
I will get to that Million AA miles someway, someday!
JudyJFLA
I will get to that Million AA miles someway, someday!
JudyJFLA
#8
Join Date: Apr 2002
Location: MI
Programs: NW/DL Plat->Gold->Silver, AA EXP 1MM
Posts: 855
Guaranty bank is currently being taken over by another bank and has suspended new accounts for a bit of time. I love BankDirect. It is a brainless way to get alot of AA miles every month without having to keep moving money around or using credit cards for coins, ect (which I still do of course). Since I am a seasonal business, I put all our excess cash for opening next season into the account. Checking pays squat in interest, but I figure my current 14K miles a month makes up for it. I just opened 2 accounts at UFB Bank for 19K in AA bonuses, but it will take a year and deals with Direct deposits ($5 from ing) and bill pay, a hassle, but only 3K in deposits.
I will get to that Million AA miles someway, someday!
JudyJFLA
I will get to that Million AA miles someway, someday!
JudyJFLA
Do you earn enough AA miles to make it worth forgoing the 2.2%-2.25% interest that is widely available from banks and credit unions?
#9
Join Date: Aug 2003
Posts: 315
Assuming a 33% tax bracket, and an alternative account that could pay you 2.25%, you'd have to value a mile at 1.85˘ or higher for the BankDirect account to be the better investment.
Remember that the miles earned represent a tax-free return.
Some formulae worked out to analyze these accounts were previously discussed in this thread.
#10
Join Date: Jan 2006
Location: Merced, CA
Programs: Lifetime Gold AA, Gold Delta, Gold Starwood, Silver UA, Silver Hyatt, etc.
Posts: 284
In most cases yes it's by far worth it if you do any amount of traveling and especially international travel where the miles really pay off.
It all depends on how much a mile is worth to you, and your marginal tax bracket.
Assuming a 33% tax bracket, and an alternative account that could pay you 2.25%, you'd have to value a mile at 1.85˘ or higher for the BankDirect account to be the better investment.
Remember that the miles earned represent a tax-free return.
Some formulae worked out to analyze these accounts were previously discussed in this thread.
Assuming a 33% tax bracket, and an alternative account that could pay you 2.25%, you'd have to value a mile at 1.85˘ or higher for the BankDirect account to be the better investment.
Remember that the miles earned represent a tax-free return.
Some formulae worked out to analyze these accounts were previously discussed in this thread.
#11
Original Poster
Join Date: Aug 2009
Posts: 510
Which banks are paying these rates? I know some pay upto 4% but requires making all sorts of monthly debit card transactions and they only pay 4% upto like $25k.
#12
Join Date: Feb 1999
Location: Denver CO
Posts: 3,675
Could you list a few of the many banks offering 2%-2.25% on immediately available funds with no other requirements? Thanks very much-this could be very useful.
#13
Join Date: Feb 2009
Location: Redwood City, CA (i.e. SFO/SJC/OAK)
Programs: AAdvantage 1MM+ GOLD, SkyMiles
Posts: 143
When I get to 130,000+ AAdvantage miles, it's time to line up one of those superb OneWorld awards (see http://www.flyertalk.com/forum/ameri...er-awards.html) that have allowed me multiple round-the-world business class trips over the past few years! Never blow miles on domestic travel btw.
#14
Join Date: Jan 2005
Location: Grand Rapids, MI
Posts: 18
Show_me_the_points, you should know until you have a Bank Direct account open for 30 days, they will put your funds on a 9 business day hold.
During that time your funds will earn the .1% interest but will not earn miles. Best to put in a minimal amount until your account is more than 30 days old, then pile in the bulk of your funds.
During that time your funds will earn the .1% interest but will not earn miles. Best to put in a minimal amount until your account is more than 30 days old, then pile in the bulk of your funds.
#15
Join Date: Jan 2006
Location: Merced, CA
Programs: Lifetime Gold AA, Gold Delta, Gold Starwood, Silver UA, Silver Hyatt, etc.
Posts: 284
Not Mine
I earned miles when my inital deposit was on the 9 day hold it just wasn't available to me this is only for deposits made within the first 30 days. Now all my deposit as available as soon as they are received.
Show_me_the_points, you should know until you have a Bank Direct account open for 30 days, they will put your funds on a 9 business day hold.
During that time your funds will earn the .1% interest but will not earn miles. Best to put in a minimal amount until your account is more than 30 days old, then pile in the bulk of your funds.
During that time your funds will earn the .1% interest but will not earn miles. Best to put in a minimal amount until your account is more than 30 days old, then pile in the bulk of your funds.