Category: Finance

It was the best house I could afford in my area for $430,000 for the square footage, proximity to work, condition, school district and rent potential being close to Cal State Fullerton. Rent potential was a large factor in my purchasing decision.

Due to the unique home layout, I was able to rent out a portion of my house for upwards of $1,236 / month offsetting my monthly payment with impound (property taxes & insurance) of $2,145.80 / month. So that was $909.80 / month for the house out-of-pocket. Principal is about $674.77 / month (which goes back toward equity), so I was really paying $235.03 / month for 3 bedroom, 2 bath, 1,500 sq ft (including garage which is my man cave). This doesn’t include home appreciation.

January 2015, my home was appraised for $616,000 which enabled me to get a home equity line of credit available to be drawn upon at $57,000 which will most likely remain untouched for now until I find a worthy investment.

The previous apartment around 2007 – 2009 was a 2 bedroom, 1 bath apartment, for $1,050/month. With my Veteran status, I managed to do 10% down, and refinanced a couple times down to 3.25% over 30 years in November 2012. Down payment sources came from savings, Roth IRA contributions, and saving up for about a year prior to the house purchase living in a hotel suite paying no rent

UPDATE: Part 2 USAA – Your Checking Account May Be Closed for Business Transaction Use (Part 2)

USAA has a “back office” that you will never be able to contact directly that has the power to close your Checking account with essentially no contest. The “back office” can determine your account is being used for “business” purposes. Even if the reasoning behind their decision is flawed there’s nothing you can do about it.

I just spent an hour talking to different individuals in regards to this letter I received in the mail:

My main question: what specific transactions were considered “business” transactions.

The first tier was no help, and just frustrating. He was just giving general answers, without specifics when I was asking specific questions.

The second Tier, “Executive Resolutions,” Chip, basically said he couldn’t do much either. He read off the notes on the account. He mentioned that the payroll checks I had deposited into my account, from my same employer of five years, were “suspicious” also because I transfer the funds out right away. I transfer them out right away into a higher interest Savings Account, which I’ve been doing essentially since becoming a member 9 years ago.

The Manager, Erik(sp?), which I never talked to, said that some “notes” will get passed onto the Back Office Department that makes the final decision.

I normally love USAA (except for Life Insurance and Home Mortgage), but this breach of trust without recourse is concerning. There should exist some way to contest the decisions of this “back office.” As a member of 9 years, I’d expect at least an inquiry to me personally about their perceived “business” activity, rather than their approach of “guilty until proven innocent.”

Reference: Your Checking Account May Be Closed for Business Transaction Use

Thank you for trusting USAA Federal Savings Bank with your banking needs. We’re writing about an urgent matter concerning your checking account ending in 2644. This account is a personal account and is not set up for business use. We recently evaluated activity on your account and determined that it is being used to process business transactions. Indicators for business transactions can include:

• Deposits made in the name of a business.
• Deposits for a merchant account (an account that allows a business to accept credit/debit card payments from customers).
• Memos on deposits/checks that indicate transactions arc related to business transactions.

Because of this usage, we may be forced to close your account. Please stop all business transactions within 30 days, or we regret that we’ll be forced to close your account.

If you believe this letter has been sent in error, or if you have questions, please call us at 1-800-531-USAA (8722). “We value your membership and urge you to take immediate action.

Being a Trustee of a Trust, I was tasked with opening up bank accounts to manage the Trust. In order to maximize the returns, I decided on opening up multiple high interest bearing Savings Accounts and Money Market Accounts.

When I open the accounts, I don’t want the accounts to be under my name, but under the name of the Trust that also has an assigned EIN. It was quite difficult to find four banks with high interest that were Internet based.

The four banks that were setup to create my new account under the Trust name with me being documented as the Trustee were the following:

• Ally Bank @ 0.84% APY
• First Internet Bank @ 0.80% APY
• Bank of Internet USA @ 0.75% APY
• Discover Bank @ 0.70% APY (under $100,000)

Ally Bank will be my primary since they offer the highest returns and will be my primary pass through account since they provide free ACH transfers between all the bank accounts.

For the most part, all the accounts have no maintenance fee and no minimum, so I can utilize them up to their FDIC $250,000 insured value or leave them empty if I don’t need them.

Here’s are my notes that list the banks that I had called into and was able to confirm that they DON’T open up new accounts under a Trust’s name. I definitely would’ve loved the higher returns in the 0.90% accounts, but alas, they didn’t support creating accounts under a Trust’s name.

Barclays – Doesn’t Accept Trusts @ 0.90% APY
Sallie Mae – Doesn’t Accept Trusts @ 0.90% APY
GE Capital Bank – Doesn’t Accept Trusts
American Express – Doesn’t Accept Trusts
FNBO Direct – No Trusts

Incredible Bank .86% – No Trusts
877.261.4750

CIT Bank .85% – No Trusts
855.462.2652

Colorado Federal Savings Bank .85%
877-484-2372,

Mutual of Omaha Bank .85%
866.264.1214
909.919.7220, Theresa

Able Banking .80%
888 I AM ABLE

TIAA Direct .76%
855.842.2372

I just got this notice in the mail.  It used to be you could simply charge $0.01 onto your debit card to get the fee waived, but alas, that’s over beginning November 1.

As of November 1, your Business Economy Checking account will
become a Business Fundamentals® account giving you new ways
to avoid the monthly fee and a savings account with no additional
monthly fee.
We’re making these changes to help you get more out of your small business banking relationship
with us, and give you additional opportunities to avoid the monthly fee.
What’s not changing
Though the name of your account(s) is changing, basic account features and how you use your
account will not change:
• You’ll keep the same account number, debit card and Personal Identification Number (PIN)
• The monthly fee will not change
• You can continue to use your same checks
• If you have Overdraft Protection, your settings will stay the same
• You’ll also continue to have access to Small Business Online Banking, Bill Pay and Mobile and
Text Banking, with no change to your Online ID and Passcode
What’s changing
Monthly fee: You now have additional ways to avoid the $16 monthly fee. Starting November 1,
you will not be charged a monthly fee when you meet one or more of the following:
• Spend $250 or more in net new purchases using any one of your linked Bank of America
business debit, charge, or credit cards; purchases must post to your account to qualify. A single
point-of-sale debit card transaction will no longer allow you to avoid the monthly fee.
Or
• Maintain one of the following balances:
– A$3,000 minimum daily balance in your primary checking account, Or
– A$5,000 average monthly balance in your primary checking account, Or
– A$15,000 combined average monthly balance in your eligible linked business deposit
accounts
There will no longer be a combined minimum daily balance qualifier.