Banking experts

[USAFRetired_Liberal]

It seems like the big national banks Wells Fargo, Chase, Bank of America, USAA, etc aren’t depositing stimulus funds until next Tuesday/Wednesday while credit unions and companies like cash app released then yesterday or today. What gives?

Link to tweet

?s=20

[PoliticAverse]

1. Why would someone still be banking with Wells Fargo? n/t

[USAFRetired_Liberal]

3. Just for the record, I am not

Saw that they were trending on Twitter and then noticed that them and other big banks are holding the funds while others are depositing them right away and people are getting upset

[PoliticAverse]

8. They're like the Trump of banks. n/t

[Mosby]

18. How do you figure that?

I think they are not much different than chase, B of A etc.

[PoliticAverse]

20. See...

https://www.nbcnews.com/news/all/wells-fargo-pay-3-billion-over-fake-account-scandal-n1140541

[Yonnie3]

2. The Credit Union here shows it as pending for the 17th. n/t

[FakeNoose]

4. Funds are coming from the Federal Reserve to cover the gov't checks

So I guess some banks want to make sure they're covered in case everyone tries to withdraw at the same time. It could happen, and banks don't want to be caught short.

[dlk]

5. The big banks are leveraging free use of stimulus funds for a few extra days

They make money whenever they can.

[csziggy]

9. Yes, reminds me of when the savings & loans collapsed

I had a regular monthly auto deposit that came into my account on the same day always. So I usually paid my bills a day or two later. I'd had two accounts, personal and business, at this savings & loan for years. Suddenly one month, I got notices that my payment checks had not gone through and of non-sufficient notices on my account.

It turned out that that S&L had put out a notice that deposits would be held the maximum amount of time before they were credited. I'd gotten the notice, but since that regular deposit had never been held before, I stupidly ignored it. When I went in to talk to an officer, she told me that there were no exceptions, they were holding every single deposit for the maximum allowed by law, ten working days, or effectively two weeks.

I got statements on my two accounts of exactly where they were for activity, went home, balanced both accounts, and went back to close my accounts. Of course they tried to talk me out of it - I'd had those accounts there since that S&L had opened, never had a NSF notice before this, and had regular, reliable deposits.

As I was cashing out the two accounts, I recommended that the teller start looking for a new job. Two weeks later the entire S&L pile of shit hit the fan and that S&L shut their doors forever.

Most of the S&Ls had been living on the float - using their clients' money from when it was deposited and credited to their institutions and before it was credited to the customers' accounts. They got to play with my money for two weeks that I didn't get to use it to pay bills.

[dlk]

11. They squeeze out every last cent they possibly can

I’ve had experience with payroll deposits posting a day or so earlier/later depending upon the size of the bank. The largest institutions are the worst offenders.

[csziggy]

13. I know - which is why my only bank account is a checking for every day expenses

I pretty much keep the minimal amount in there.

I do have to say good things about Sun Trust Bank. They've treated me very good - I went to them when I closed my S&L account and told they why so I'm coming up to about 35 years with them. I just worry about how their merger with BB&T will affect them as they transition to being Truist. (What marketing exec came up with that idiotic name?)

[dlk]

14. I like banking with a smaller regional bank

They offer more services at a lower cost.

Truist is an odd name for a bank It sounds like a combination of trust and true, and obfuscates the actual nature of the business. It could easily be the name of a political party or social movement/religion. No doubt the name was test marketed with the desired demographic.

[csziggy]

15. Sun Trust started out as a small regional bank

It began in Orlando, Florida and became First National Bank as it grew. My first bank account was at a First National Bank - and that was where my parents banked.

They merged with a Georgia trust company and kept merging until they became a Southeast regional bank. I think the BB&T merger is to go national.

[dlk]

22. The big fish gobble up the little fish

And customers lose out in the process. The days of personal relationships in banking are pretty much in the past. My mom worked at Bank of America in Los Angeles after the end of WWII. It was a local bank then. Not anymore. It’s sad to lose local and personal parts of our communities. Time marches on...

[csziggy]

24. There can be advantages to larger banks

I remember when I needed some cash while on vacation - in the same state. Back in 1979, it was not easy when there were no branches near where you were. In fact, when I first started using Sun Trust, the bank up here was in a different network than Sun Trusts down state so when I was visiting my parents, I couldn't get cash quickly from the Sun Trust in their town.

Now with debit cards and internet linkages, it's much easier. When we were in the UK, it was easy to get cash even there. I suspect if I changed to the credit union I could join, I would be able to get cash anywhere, at least in the US.

Now the brokerage firm is a different story - they know my voice so even when I was in the UK, I could call in and have them make payments. That's why I have not gone to online investment accounts - I like that personal touch.

[dlk]

26. Of course there are advantages to larger banks

It’s not either/or. There are advantages and disadvantages to each. I was feeling a little nostalgic for the personal connection. No doubt the social distancing due to Covid has influenced my feelings.

[Hortensis]

12. This was my assumption. If more than 1 reason, this'd be among them. nt

[Maeve]

6. My credit union says my deposit is pending for March 17th

Happy St Patrick's Day!

[BlueLucy]

7. They profit off of the interest in those few days.

[VickiSmith]

10. Credit Union

my Credit Union shows pending for the 17th.

[onethatcares]

16. the question was asked above

why would anyone stilll bank with wells fargo? Or boa, or chase?

thieving bastages all.

Explain to your friend why they should go with their local credit union. Mainly because they offer the same services and are mostly local.

[KentuckyWoman]

17. i am with a credit union and mine is avail Wednesday.

I don't think it has anything to do with big banks.

[Mosby]

19. FYI - USAA isn't a bank.

Seems odd that you are attacking them.

They are a member owned company, like a cooperative.

[MoonlitKnight]

21. No. The bank is separate from the rest.

You don’t even need to be a member to have an account with USAA’s bank. They do have the same level of service and everything combined in the web site and app.

[Mosby]

25. Its not a bank.

USAA FSB is a savings and loan. Their main revenue comes from consumer loans and personal accounts.

Banks have business and government customers who engage in billion dollar projects. Banks offer investment services.

[FBaggins]

27. "FSB" stands for "Federal Savings BANK"

USAA does indeed own a bank. They also offer investment services - though they sold much of that portfolio to Schwabb a year or two ago.

[Mosby]

28. USAA runs a Savings Bank.

the big banks are often referred to as Money Centers, and are regulated differently.

Savings and loan institutions–also referred to as S&Ls, thrift banks, savings banks, or savings institutions–provide many of the same services to customers as commercial banks, including deposits, loans, mortgages, checks, and debit cards.

S&Ls were originally created to provide more economic opportunities, like home loans, available to more Americans (specifically, members of the middle-class).

Many commercial banks conduct many of their operations exclusively online.

Some rules for lending differ between S&Ls and commercial banks, although a ruling by the Office of the Comptroller of the Currency (OCC) in 2019 provided more flexibility to the lending practices of S&Ls.

Historically, S&Ls have been private entities and mutually owned by their customers; however, some are publically-traded companies.

Commercial banks are owned and managed by a board of directors selected by stockholders. Many commercial banks are large, multinational corporations.

In contrast to the S&L's narrower focus on residential mortgages, commercial banks typically provide a broader range of financial offerings, often including credit cards, wealth management, and investment banking services. Although commercial banks provide residential mortgages, they tend to focus on loans targeting the construction and expansion needs of regional, national, and international businesses.

https://www.investopedia.com/ask/answers/041015/what-difference-between-savings-loan-company-and-bank.asp

[MoonlitKnight]

31. USAA Federal Savings BANK is not part of USAA insurance

It is a separate entity, which was the point. The fact that a Federal Savings BANK is an S&L isn’t germane. But if you want to nit pick that a Federal Savings BANK isn’t a bank then more power to you.

[roamer65]

23. I wonder where the breaking point is at for the dollar.

$30T...$40T...$50T?

The markets will eventually turn on US Treasury paper.

[Generic Brad]

29. Keep in mind - financial institutions can't give you what they don't have

The payment file has to be received by your institution before they can post it to your account. If your bank or credit union has not received it, they can't make it appear in your account out of thin air. The government has to give it to them first. Please keep that in mind if you are inclined to yell at someone next week because your money is not in your account on Monday. They will give it to you as soon as they have it and are able to.

[JanMichael]

30. Over night interest rates. nt

[Tree Lady]

32. I got mine yesterday use local

Credit union. And. Already finished taxes this year.