Posts by Brian Murphy32

Maybe you should be looking for roommates instead of girlfriends... you might actually find 😁

bluebear34 said:Wait, what do you mean "nothing needed"? I'm lost... 🤷
I still have to specify how I'm using the funds for the furniture loan... and honestly, I have no clue why they only mentioned needing a co-signer... OMFG!!👎
And now I'm stuck wondering who's actually going to sign for me. That's the real nightmare... No one in my family is stepping up to be a co-signer, let alone some random friend. As for my job situation, I'm not even worried about that... I just need to know if the rule is still the same—can the mortgage payment exceed 2/3 of my paycheck or not?!

So, look, if you decide to go the home renovation route, you’ll need to bring written consent from the property owner to the bank. However, if you just want to furnish an apartment—whether it's yours or someone else's—you shouldn't need any special permission (at least, that's what I was told, though maybe it varies between different banks).

Basically, regardless of which path you take, you won't tell the bank specifically how you want to spend the money, because they aren't just handing you cash. Instead, in the event of
1. renovations—they transfer the funds directly to the contractor's account once you provide a formal estimate.
2. furnishing—they transfer the funds to the account of the furniture showroom where you picked your items. In other words: you go to the showroom, pick your stuff, ask for a quote, and take that quote to the bank. Then the bank pays the showroom, the guys deliver the furniture to your house, and then, about a month later, boom—your first loan payment is due. 🤣

The folks over at my local credit union mentioned that I could actually use the funds to renovate or even furnish an apartment I don't technically own. Apparently, if I'm looking to do some structural remodeling, all they require is a signed statement from the landlord giving the green light. As for just buying furniture and gear, they said no special permission is necessary at all.

How much lead time is actually required to transfer funds from one savings account to another if the goal is to consolidate everything into a single family savings plan to qualify for a larger loan? To be specific, one family member currently holds an account at X Savings Bank, while two other members have accounts at Y Savings Bank—I’ll leave those names out for now. Under what specific conditions can these three separate accounts be merged into one unified family savings pool?

The savings in question were originally set up with a contract for just $1,500, and a 1% entry fee was paid at the start, though the actual amount saved is significantly higher than that initial $1,500 figure. I suppose the question is whether, upon transferring to a different bank, they will charge a penalty based on the difference between the contracted amount and the actual total saved. Furthermore, would it even be possible to increase the contracted limit once the funds are moved to the new institution? If that isn't an option, then moving the money seems entirely pointless, I guess.

The only real way to hold onto that apartment is to get some roommates. If I’m remembering correctly, you're looking at a 750-square-foot place, which should probably accommodate three people—meaning two extra rooms. Plus, you’d be splitting those monthly utility bills three ways. I don't know exactly where the place is located, but from what I can tell, having two spare rooms could net you $667 +/- $67. It would drive down your overhead, which might make things a bit more manageable for you.

In my situation, the savings interest rate is sitting at 6.45% (APR), while the loan rate is 5.4% (APR).
I suspect I won't be able to find anything more favorable than those terms anywhere else, especially since we're looking at a fixed interest rate.
And yes, I didn't have to pay an upfront fee because there was a promotion running.

I actually just went through my files to double-check the contract and the payment schedule from my mortgage provider, and apparently, they're offering 6.45% on savings. I suppose I agree with the sentiment that it seems almost impossible to pull those kinds of rates from a major bank these days.

Why wouldn't you just ask Target or maybe even someone like Walmart to send over a formal quote or a preliminary estimate first?

Here’s how it went down when I was talking to my representative at Wells Fargo recently regarding my apartment renovation. When you're in the adaptation phase, you basically hand them an estimate, and they pay the contractor or the supplier directly based on those figures. Once you move into the furnishing stage, you either bring them the final invoices so they can reimburse you, or—more likely—it’s the same deal where you provide an estimate, they settle the bill, and then the furniture gets delivered straight to your place.

As for how much leeway they give you regarding invoice dates, I guess it’s hard to say exactly how much they tolerate.
It just doesn't seem to make any sense to me to furnish an entire place and then wait six months to take out a loan to cover the cost of that furniture. It’s like buying an apartment a year in advance and then waiting until later to grab a mortgage for it. If anyone here actually understands the logic behind that, maybe someone could set me straight.🤷

Quick question here... say I sign up for a home savings plan for $10,000, but after five years, I’ve only managed to save $5,000. Would I still be able to withdraw the difference between the target amount and what I actually saved—meaning that $5,000 gap? Or would my $5,000 savings just count as 40% of the total, perhaps bumping the agreed amount up to $12,500 so I could eventually qualify for a $7,500 loan?

FDIC

1061

Pursuant to Articles 11 and 12 of the FDIC Statutes, and in accordance with Article 3, Section 1, Item 4 of the Deposit Insurance Act (as published in the Official Gazette, No. 177/2004), the Agency Administration held its 88th session on April 6, 2005, and issued the following
DECISION
REGARDING THE CRITERIA FOR IDENTIFYING DEPOSITS HELD UNDER SIGNIFICANTLY PREFERENTIAL TERMS

Article 1.

In compliance with Article 3, Section 1, Item 4 of the Deposit Insurance Act (Official Gazette No. 177/04), this Decision establishes the criteria used to identify deposits held within banks under terms that are significantly more favorable than standard rates, or those involving financial conditions that contributed to the deterioration of the bank's stability.

Article 2.

The criterion for identifying the deposits mentioned in Article 1 of this Decision is that they were placed in a bank with an interest rate at least 30% higher than the highest publicly advertised interest rate for that specific type of deposit and maturity period, as defined by the bank's own Decision on Interest Rates for consumer business in effect on the date the deposit agreement was executed.

Article 3.

This decision takes effect upon its publication in the Official Gazette and shall be applied starting from the first day of the month following the month in which it was published.

Ref. No: V-440/05-4

Washington, D.C., April 6, 2005

Chairman of the Administration

Damir Polančec, signed

I haven't been able to find anything more recent, which I suppose means this decision hasn't been amended since then.🤷

It felt off to me too, which is why I reached out to the DAB directly. Once they sent over written confirmation that my funds were fully insured, I finally felt like I could breathe again.

For instance, take thishttp://www.credobanka.hr/files/DAB-o...u-depozita.pdf. A few days ago, I actually sent an inquiry over to the DAB asking them to clarify exactly what they mean by deposits held under significantly more favorable terms. I guess they just sent me back the exact same response they gave before.

Kimberly Nguyen, don't mention it....

My father has some funds sitting in some random bank—not that it really matters—but once his term ended, he wanted to move the money to a different bank because they were offering much better rates. Apparently, the current bank was desperate to keep him, so they offered him 6.3%, which is actually 30% higher than their publicly advertised rate. When my dad told her he wasn't interested because those specific funds weren't FDIC insured, she just stared at him like he was speaking a foreign language. Eventually, she had to call over the branch manager, who ended up apologizing to my father and extended the term with an increased interest rate of 29%. 🤣

I had a similar experience when I was setting up a savings account at a bank in Chicago. I went in with my son, and the teller immediately asked if the savings were for the little guy. I told her yes, it’s for him, but it will be in my name. She started lecturing me about how it would be better to open a dedicated children's savings account to get a slightly higher interest rate, but I wouldn't budge. I didn't want to deal with that whole headache involving the American Meteorological Society approval process, which, strangely enough, this lady didn't even seem to know existed.

rapiddrifter11 said:I just saw Bank of America is offering 8.5% on a 6-month CD??? How much can I actually trust that?

I think you might be misreading that. It looks more like a 36-month term in USD rather than 6 months. Since the interest rate is publicly posted, I suppose there isn't much to worry about regarding its legitimacy.

Kimberly Nguyen, of course it matters....

N O T I C E R E G A R D I N G C I T I Z E N D E P O S I T I N S U R A N C E
The FDIC (hereafter referred to as the Agency) provides coverage
for citizen deposits based on the deposit insurance act.
The Agency insures citizen deposits at every bank, savings bank, and thrift institution up to the amount of
$133333 in a 100% capacity, regardless of the number of bank accounts held, the balance of those accounts, the currency used, or
where those bank accounts are located.
The United States guarantees the Agency's obligations.
The Agency pays out compensation for insured deposits to citizen depositors in the event that the Federal Reserve
notifies a credit institution
of an order regarding the unavailability of deposits or when a competent court issues an order to initiate bankruptcy
proceedings.
The following deposits are included in the deposit insurance system:
1. funds held by citizens in USD or foreign currency deposited under a
deposit agreement,
2. funds in USD or foreign currency held in a savings book,
3. funds in checking accounts,
4. funds in citizens' money market accounts.

The following deposits are NOT included in the deposit insurance system: they are not covered by the following types of deposits:
1. deposits held by members of the board of directors or the supervisory board of a credit institution or special
management of the credit institution where they perform these functions, along with their related
parties,
2. deposits held by shareholders who hold more than 5% of voting shares in
the base capital of a credit institution and their related parties,
3. deposits that are not held in a person's name,
4. deposits placed under significantly more favorable terms than standard rates or those
placed under financial conditions that contributed to the deterioration of the credit
institution's status (see the note provided below regarding this point),
5. deposits for which a competent authority has determined, via a valid ruling, that they originate
from or are linked to transactions and actions constituting money laundering
under the laws regulating money laundering,
6. deposits held in credit unions.
The Agency is required to prepare compensation for citizen creditors no later than 90 days from the date the
unavailability of deposits or the opening of bankruptcy proceedings is established. In exceptional cases, the Federal Reserve may extend this
period.
---------------------------------------------------------------------------------------------------------------------------------------------------
Note regarding point 4:
Article 2 of the Decision regarding criteria for determining deposits placed under significantly more favorable terms
(Federal Register No. 55 dated April 29, 2005) stipulates that thecriterion for identifying such deposits is that they
were placed in a bank with an interest rate at least 30% higher than the highest publicly announced
interest rate for that specific type of deposit and maturity period found in the bank's own interest rate decision for
consumer business, which was in effect on the day the deposit agreement was signed.
This Decision has been applicable since May 1, 2005.

In principle, we’re talking about an agreed-upon interest rate. If you’re locking up a deposit with a rate that’s at least 30% higher than the highest publicly posted rate
for that specific type of account and maturity period—as dictated by the bank's interest rate decision for consumer products in effect on the day you actually signed the contract.

The funds are covered by the Democratic Advisory Board up to $133, provided the agreed interest rate doesn't exceed the publicly announced rate by more than 30%. Since you mentioned "some money," I assume we're talking about an amount small enough that it wouldn't trigger those higher negotiated rates anyway, so there's really nothing to worry about. You'll get your cash eventually. Maybe consider a 3-month CD instead; at a 5.2% yield, it’s actually a pretty decent deal, and if things get hairy, you can always pull the funds. Just keep in mind that for this promotional fixed-rate savings account, the early withdrawal penalty is 0.5%, with a minimum charge of $100

Chase Bank requires a minimum of $1,000, and they'll approve you for the full deposit amount

brightranger52 said:I checked out their little promotion. Honestly? It’s a total mess. They claim it's "premium savings," but there's a catch: you either have to move your checking over to them or buy life insurance through State Farm or Generali. Hard pass from me.

Other banks don't play those games; they actually just want your deposits. Plus, the rates are way better than what you'd get at JPMorgan Chase. Check out Bank of America, Hypo, Wells Fargo, or RBA instead.

I suspect we aren't talking about the same thing...
In my case, I took out a CD, and I don't even have a checking account with Wells Fargo, nor did they ask for one. The rate itself seems fine, I suppose, but they caught me off guard with a maintenance fee on the liquid account for the first three months.
In any other bank I've used, I've never had to deal with fees on a basic account, so that's why I'll likely move my money away from Wells Fargo as soon as this term ends.

Honestly, it seems pretty nonsensical to charge me for a checking account that sits there completely inactive until the day the CD matures and the funds transfer over, but I digress.