Bank Account Considerations (Suggested Dos and Don'ts for bank accounts)
Bank Account Considerations
Most of the bank accounts are standard, not new products. Use them to your advantage.
You may want multiple accounts and different account types for different purposes.
You will likely have at least two accounts:
one for every day and one for the larger sum of assets.
Whatever account or accounts you choose, especially for large deposits:
1. Do NOT agree to give the bank “power of attorney”.
2. Do NOT let a money manager have complete fiduciary control over any of your money. Make sure you have to sign for everything.
3. Do NOT have a “test” account.
4. Do NOT have access by all Tellers.
5. Do NOT have automatic withdrawals on your accounts. If you travel a lot or want the convenience of automatic bill-pay, for example, then set up a separate "household" account that allows payments from that account. You can then periodically go to the bank to transfer funds into that account from your larger holdings account.
6. Do NOT have computer or remote banking from your iPhone or computer.
7. Ask for credit or debit cards that are secure. Be sure they are NOT RFID-enabled. (RFID = Radio Frequency Identification).
8. Make sure you have the right loss and theft protection. Ask your bank what kind of protection it offers if your Debit/ATM card is stolen or lost. Thousands of dollars could be pulled from your checking account and, in many cases, you wouldn’t be nearly as protected as you would be with a stolen credit card.
9. Do not agree to card that has a “Universal Default Clause“ It allows the bank to look through all your credit accounts, and if it sees that you’re late paying a bill on another card, it gets to jack up the interest rate on its card.
There may be others. Ask your Banker what other features their bank
provides for identity protection and funds security.
GET PRINTED RECEIPTS of all of the transactions with regard to all the accounts which includes Deposits, Debits, and Current Balance.
Get copy of signed Non-Disclosure Agreement.
Get a blank copy which you will use for everyone you consult concerning your assets such as lawyer, CPA, financial adviser, family members, etc.
Bank Disclosure Documents If you are planning to make large purchases such as a house or car, you may want to ask the bank for a letter which states you have sufficient “clear, clean, and non-criminal” funds.
A “proof of funds” (POF) is a document or bank statement proving that a person has the financial ability to perform a transaction. For example, if you want to purchase a $300,000 house, disclose only up to $300,000. The realtor doesn’t need to know you have any more than that.
CAUTION: There is no need to disclose your total holdings. Only disclose information about your wealth or identity on a need to know basis. Consult a qualified attorney for more specifics.
WHY NIB Accounts? Until December, 2012 the U.S. Government insured higher deposits for non-interest bearing bank accounts. Congress ended that protection so getting your money to work for you in accounts that earn interest on the deposited funds makes good sense.