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No. I have a couple rainy day CDs paying under 2%, that I keep. Everything else goes to my Schwab account. Lots of conservative companies are paying at least a 4% dividend, which is twice what the banks are.
I'm very skittish about on line banking. I want copies of my signature card (joint account--proof for FDIC) as well as a paper copy of my CD (useless I know). There's plenty of problems that can occur when the FDIC comes into a bank closing. You, the CD holder, is responsible that all documentation is correct. Also, I want my Driver's license on file with the bank.
Not even sure what a "signature card" is, but regardless you can get statements, paper copies etc from online banks. You just have to print them out yourself.
Although, not sure what a bunch of copies is going to do for you. Anybody with a bit of computer skills can forge these things. When a bank fails, their banking system does not collapse. When you go in the bank they are just accessing the same system.
A signature card is documentation that proves what you said to the bank concerning single, joint account, POD, etc.. which can be important when the FDIC comes into a failed bank or the death of the CD holder. I will add that the fine print has changed over the last couple of years that implies even the signature card may not be sufficient proof anymore (FDIC insurance only).
If my CD gets hijacked/stolen off the internet I can tell the bank/gov’t that I do not do ‘online banking’ & never have which means I do not participate in any transactions that go through the internet. If someone pretends to be me & comes into the bank to ‘steal’ my CD, the bank has the responsibility of thoroughly checking for identification (Patriot Act) before they hand over the money; especially large amounts. If they give the money away I should have little trouble getting my money returned.
I’m not too familiar with online banking but my guess is that you are giving the bank permission to wire money too & from accounts. I will bet largely that the fine print says that the bank is not responsible for any shenanigans pertaining to your online accounts because of that permission.
In any event, I recognize that all this may just be illusionary security but what can I say; I’m skittish about online banking.
If my CD gets hijacked/stolen off the internet I can tell the bank/gov’t that I do not do ‘online banking’ & never have which means I do not participate in any transactions that go through the internet. If someone pretends to be me & comes into the bank to ‘steal’ my CD, the bank has the responsibility of thoroughly checking for identification (Patriot Act) before they hand over the money; especially large amounts. If they give the money away I should have little trouble getting my money returned.
When you go into a bank and ask the teller to do something they are merely doing "online banking" on your behave. In terms of creating an online account yourself, even if someone was able to log into your account they can't just take your money. They would have to transfer funds, but that requires that they verify the other account which takes days. The banks also check whether the names on the accounts match.
I always prefer to make online accounts for any company I deal with banking or not as it prevents someone else doing it.
Quote:
Originally Posted by DSOs
I’m not too familiar with online banking but my guess is that you are giving the bank permission to wire money too & from accounts. I will bet largely that the fine print says that the bank is not responsible for any shenanigans pertaining to your online accounts because of that permission.
Creating an online account with a bank does not give them permission to wire anything in or out of your account, nor does it make them exempt from dealing with fraud and getting your money back. At the basic level online banking just gives you the ability to view your account details 24/7.
If you want you can link accounts and transfer funds, but that as I said before requires that you verify the other account, etc.
I view online banking as something that makes me safer, not less safe. I am able to view the details of my accounts whenever I want, I get e-mail notifications of any major activity, etc. In short I will be able to deal with any fraud rapidly, on the other hand it could take weeks for someone that does brick and mortar banking to realize something has happen.
Again, I guess you never bothered to actually look things up. Although some health related costs have gone up, most other things have gone down in costs. CPI is an aggregate of all things.
Okay, user_id, here is my question for you. Other than gasoline, houses and airline tickets, what prices go down? In other words, in what industry is there price elasticity? Most prices are inelastic meaning that they do not flex with the supply/demand curve. Most prices have floors; they go up, but not down. When was the last time that you saw the prices of the following drop:
-a loaf of bread
-a can of Coca-Cola
-toilet paper
-plumbing parts
-shoes
-winter jackets
-a bottle of cooking oil
-chicken
etc.
I am not talking about short-term price discounts, i.e., end-of-season sales.
This is why the CPI as computed by the US government is suspect. They show a -1.3% rate currently, but -as I asked- other than housing, gas and airline tickets, what prices routinely drop?
BTW, airline tickets are NOT going down at this time as I had to buy some tickets at an all-time high price.
I think that it is to the government's benefit to mislead regarding the real rate of inflation at this time.
When was the last time that you saw the prices of the following drop:
-a loaf of bread
-a can of Coca-Cola
-toilet paper
-a bottle of cooking oil
-chicken
I am not talking about short-term price discounts, i.e., end-of-season sales.
.
All of the above things are noticeably cheaper vs last year. In some cases its just that the sales are more aggressive, but that is how grocery stores start to discount. After around 4~6 months, they will start to lower the list prices.
Anyhow, pricing in groceries is not cut and dry...so you have to actually know their pricing models to get a sense about what is going on.
Okay, user_id, here is my question for you. Other than gasoline, houses and airline tickets, what prices go down? In other words, in what industry is there price elasticity? Most prices are inelastic meaning that they do not flex with the supply/demand curve. Most prices have floors; they go up, but not down. When was the last time that you saw the prices of the following drop:
-a loaf of bread
-a can of Coca-Cola
-toilet paper
-plumbing parts
-shoes
-winter jackets
-a bottle of cooking oil
-chicken
etc.
.
Teak, I think you are right. I have not seen my food bill go down whatsoever. If it's moving in a direction, it's only going up. As for shoes and jackets...I hadn't bought these items in several years...I'm not a clotheshound to say the least! Anyway, I did go shopping for these items recently and was pretty amazed by the prices....way up from the last time I was looking.
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