Here’s the answers I got to the questions I asked @ Purepoint as they may be relevant for others here.
You can open JUST a cd with no savings or you can open both. The $10,000 minimum is across all accounts so having the money in the cd would allow you to have a small amount in savings should you choose to do so. You can fund the cd directly from an external bank which will be linked to the account and available to receive the funds should you close the cd. The easiest method is the online process which would let you do everything in one place…application, funding and online account access setup.
On an unrelated note…I received an email from Bank A saying “I noticed you had not taken advantage of our new high rate and…” It appeared to be a canned email but did have a persons name and email attached so I decided to reply back and told them the reason I had moved my funds out was because even with the overall trend of interest rates going down several banks were still offering 2.5% for checking/savings and 2.6% for a 13 month NP CD. I said something like “When Bank A has competitive rates I’d be willing to move my funds back.” I got an email back in a fairly quick amount of time from the indicated person who not only said they would offer me 2.5% but offered a 12 month rate guarantee. I inquired whether he would match the 2.6% and have not heard back. Probably not as I assume he would have done so initially. This was when I asked about the rate guarantee on the other two. I think it would be worth my time to move funds even if the rate was the same because they are willing to guarantee it for a whole year. Obviously Purepoint is to be preferred but I liked his “go get em” attitude. Sometimes it does pay to be the squeaky wheel. Before anyone asks, I’m not comfortable passing on the name of the individual or bank until he approves it. No need to burn my bridges however if someone wants to know I can ask in email and get back to you.
Interesting report. Look forward to hearing who bank A is after you get approval.
This reminds me of a note on CIT Bank’s web site (shown below). I’ve called that number several times and they read me the rates posted on the web site. I say, but your message says to call this number to see what you might be willing to do if I’m ready to move money out. Their answer is basically … sir, we don’t know what you are talking about.
I was curious…with Purepoint Financial, what is the maximum amount you can transfer by ach from an external bank account (using their system) per day and per month? And does interest start from the day they receive the funds?
Not sure about the max per day and month but interest is earned on the amount as soon as you submit the transfer request as long as it’s before 9pm on a business day. For instance if you submit a transfer prior to 9pm on Friday of a holiday weekend, you would earn double interest for Friday, Saturday, Sunday, and Monday. Nice feature!
Just looked at their disclosure. Looks like max is 250k a day and 1M every 30 days.
I think all banks are required to pay interest from the day they receive the funds (assuming they pay interest that is). The advantage of doing it on the purepoint side is they give you interest from the time you submit the request before they even have the actual funds and you continue to earn interest on the source because it hasn’t been pulled yet…combine a weeked with a holiday and you have @shinobi’s fav thing…double interest on the same money.
Keep in mind the limits you are looking at are ACH limits…they do not affect wires in any way and they are not included in externally initiated requests. You could max out your monthly amount in purepoint and then still initiate an external move which would be processed…at least that’s exactly what I did at Ally in the same situation.
Thanks Guys! Just Opened the Online Savings (i have had accounts with them in the past, so still able to log in on the online banking) and once i get a lot of funds over, will also open the No Penalty CD…That is nice that interest starts immediately (when you schedule the transfer in before 9 PM)…They have a nice set up on the online banking and it’s very easy to instantly link new external accounts and manage beneficiaries…
At Virtual Bank they do not pay interest on funds arriving via ACH until the next business day following the day they receive the funds. And, yes, I am writing about a situation where the ACH is initiated external to Virtual Bank!
What’s more, Virtual Bank does not warn customers in advance regarding this little theft. I picked it up one day by detecting my accrued interest was off.
That said, I believe most financial institutions DO pay interest on ACH funds upon receipt. It’s just that I doubt they are required to do so.
As with every other aspect of banking, and especially as regards liquid funds, ya gotta watch these banking birds like a hawk!
I just opened my seventh PurePoint NPCD, last one for a while. All my NPCD accounts are quite new since I only went in when the interest rate hit 2.6%. Obviously I have more than $10,000 in the bank at this point, at all times, without regard to my savings balance.
I telephoned the bank to inquire about any impact my new NPCD account balances might have on my savings, an account I have owned and used for quite a long time. In the past, with PurePoint savings, it was required to keep a minimum of $10,000 on deposit if you wanted to garner the high 2.35% interest rate.
The PurePoint rep told me it continues to be the case that $10,000 minimum is required in savings to earn the 2.35% rate. The balances in my NPCD accounts do not count; the accounts are separate. So said the rep with whom I spoke.
Now of course it always has been possible to carry a PurePoint savings balance less than $10,000. Heck, you can leave a very small balance in the account if you wish and escape penalty. However, if your savings balance falls below $10,000, you do not earn 2.35% on your money that is in PurePoint savings, according to the rep who answered my call.
Ok who’s gonna call the third rep to break the tie? No I assume you’re right Shinobi and my rep either told me incorrectly or I misunderstood what they said. The issue is you have to have $10000 to OPEN the savings to my understanding? You can then drop the amount and the interest earned?
I talked with them today so i can tell you…yes, you must open a purepoint savings account with $10,000…if you drop below that, after opening, it stays open but the interest rate drops to like 0.25% apy…
I agree with this . . . . which is why I was careful to state that everything I was posting was based on the word of just a single rep.
I make no such assumption. See my writing just above.
I really am unable to remember. I opened quite a while back.
Yes, I know this is correct because I have done so without any trouble.
Just for the record I can tell you my PurePoint savings account has become an important part of my financial life. At this point it is close to being as important to me as my Alliant membership. But my reason is not gonna apply to many other people:
I like PurePoint savings because I do, each month, a large number of (for lack of a better term) “collections”. This just means I am using ACH to pull in money from a wide variety of other places. At PurePoint, each time I initiate an ACH collection my interest on the funds commences instantly. Hence my effective rate of interest, using PurePoint savings, is above the nominal 2.35%. Said another way, it is commonplace for my PurePoint savings available balance to be significantly less than my total balance.
I love PurePoint savings given the high utility the account offers me.
“Don’t leave home without it!”
I am posting here because I want to comment on the Grow Financial money market deal Ken has begun featuring front and center. Grow is Tampa based, offering 2.75% APY with a one year rate lock.
I studied the deal a bit several days ago, but did not pursue with vigor because there is so much else going on with PurePoint and all. Anyway, point I want to make is that Grow’s SEG list is a MILE long, and their website specifically states either “employed by” or, emphasis OR, “a member of”.
I have to believe with a list that long there might be opportunity to sneak in. Just sayin’.
Q: Pretty thin gruel, Shin. You got a link you can share so we can check out that list for ourselves?
That list has to have over one hundred entries, at least! Good luck to all.
Costco and Sams Club are listed … I wonder if just being a member is sufficient or if you have to be employed by them.
Yes, one of the better websites especially in comparison to so many of these banks using the ibanking platform.
According to the rep I spoke with, anything listed is either employed by or member of. I’m in on this one due to the 12 month rate guarantee!
Regarding Grow, this is an annoyance:
“No ACH transfers directly out of the Money Market account. Funds must be transferred from the Money Market account to a Grow Financial checking or savings account, and then an ACH transfer can be initiated. There are no dollar limits on ACH transfers.”
Funds must be transferred only from checking or savings accts. Would you be charged from your Money Mkt acct allotted 6 moves a month, for moving funds to checking or savings?
OK, I’m back regarding Grow having just read the comments over on Ken’s website. Apparently this might work out, as I earlier had hoped, regardless where you live. Be certain to read there comment #8 by steve_okc. He mentions Friends of Military Families for $5. Might be enough to get us in.
I’m not really seeing a problem with needing a checking or savings account unless there is a charge for those accounts or a high minimum balance or some other annoying “gotcha”. I do admit it’s a minor nuisance, but surely not a deal killer at the high 2.75% APY interest rate with a dynamite one year rate lock. What’s not to like? I mean, 2.75% APY is a darn great interest rate for liquid funds.
OK, there is some stuff on the fees sheet you need to take into consideration: