Cash in a local bank or credit union

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gasdoc
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Cash in a local bank or credit union

Post by gasdoc » Tue Oct 03, 2017 12:29 pm

Hi, folks,
Recently I decided to keep open an account in a local credit union, even though we do most of our banking online (CapitalOne360). I have searched earlier Bogleheads posts, and have not found a good conversation about home much cash folks keep in a local bank or credit union. We are considering $1,000, with the ability to transfer more given 48 hours notice. In a real emergency, I guess we could always wire money (nearly) instantly. But we were wondering, how much do Bogleheads typically keep in a local bank or credit union?

Thanks,
gasdoc

onthecusp
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Re: Cash in a local bank or credit union

Post by onthecusp » Tue Oct 03, 2017 1:03 pm

For the past year or so, after getting taxable accounts at Fidelity, we've been keeping zero, except for what is in the checking account. Now, I like to minimize what is in checking as well, so I'm probably reviewing our balance too much for my liking when for various reasons I have let the checking account go a little low.

It is easy enough to transfer some from Fidelity, but there seems to be a day or so delay. I'm thinking of reopening a savings account at the bank to get the Chase $200 bonus and keep up to two thousand there (after we satisfy whatever the minimum deposit requirements are to get the bonus). I may find this too much hassle and close it again, and just make sure I keep the 1-2,000 extra cushion in checking.

livesoft
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Re: Cash in a local bank or credit union

Post by livesoft » Tue Oct 03, 2017 1:12 pm

WellsFargo is local to me and indeed the closest business to my home. Since my checking account is linked to my brokerage account and money is practically instantly transferable between them, I can augment the meager amount in my checking account quite quickly with a few mouse clicks.

I keep about 2 weeks worth of expenses in my "local bank."
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ThriftyPhD
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Re: Cash in a local bank or credit union

Post by ThriftyPhD » Tue Oct 03, 2017 1:36 pm

What are you using it for? For actual banking, bill pay, checks, direct deposit? Or just an emergency stash of cash? At $1k, probably not worth the hassle, could just keep the $1k at home. Does Capitol One let you take money out at ATMs?

I try to limit the number of accounts I have, so if it's not something I'm going to actually use, I pass. I've been closing some old CU accounts for this reason. I've had others go dormant because I didn't use them frequently enough. Fortunately I now have a larger bank with good online banking with branches nearby, so I can always go in person if I need to.

If you're not going to use it regularly, you're more likely to forget the card, or PIN, or account number when you actually need to get the money in an emergency.

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Watty
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Re: Cash in a local bank or credit union

Post by Watty » Tue Oct 03, 2017 1:58 pm

I keep my "banking" separate from my investments accounts for convenience and to reduce the chance of having problems with my investment accounts.

I use a regional bank for a no-fee checking account that I use for paying bills, getting cash from, and depositing the occasional check or cash deposit after something like a yard sale. I only have the checking account with them and no other accounts like credit cards.

I'm retired so when I get down to about one months expenses in the bank I will transfer a couple of months expenses to the bank. At any given time I might average having in the ballpark of $10,000 at my local bank. I might be able to get an extra hundred bucks or so in interest by using an online bank but the convenience of only having one local bank is worth it to me.

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gasdoc
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Re: Cash in a local bank or credit union

Post by gasdoc » Tue Oct 03, 2017 5:35 pm

Thanks, everyone. So far, I hear two weeks (livesoft) to four weeks (Watty) of expenses at the local bank. My $1K seems pretty meager to me now. I have already answered the question of whether to keep a local credit union in an earlier thread (the answer was yes). Number of weeks of expenses is probably a good way to anonymously answer the question. $10K, for me, would be a nice round number that would put me on that ball park, and should get me through most emergencies until I can get other money transferred to the local credit union, and should be enough that they won't mind helping me with signatures or whatever.

gasdoc
Last edited by gasdoc on Tue Oct 03, 2017 6:20 pm, edited 1 time in total.

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Phineas J. Whoopee
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Re: Cash in a local bank or credit union

Post by Phineas J. Whoopee » Tue Oct 03, 2017 5:55 pm

Here's my answer from a thread late last year.
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Re: Cash in a local bank or credit union

Post by Super Hans » Tue Oct 03, 2017 5:59 pm

Conveniently, a local credit union has "rewards checking" that pays 2% on up to $20k. This works out nicely for easy access. Of course, I have to contrive ~15 micropurchases on my debit card monthly to qualify for the rate.

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Re: Cash in a local bank or credit union

Post by rec7 » Wed Oct 04, 2017 7:52 am

I have a few hundred in the credit union. It is only about six blocks from the house so I like that. It is almost like having money in the house.
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Re: Cash in a local bank or credit union

Post by Jack FFR1846 » Wed Oct 04, 2017 8:22 am

Let's see.....looking at my balances, I've got $24k in our local credit union. We had a recent big refund from a school so I've been filling my accounts back up. I use DCU as my home base, paying all of my automatic stuff from there, moving money to Redneck and Ally from there, also to Fidelity, Schwab and TDAmeritrade for investments. My entire family holds primary savings at exactly the max of $1k in order to earn 5.12%. Overdraft charges (if they ever occur) are removed with a phone call. Notary and wax-Pope-signatures (aka medallion) are free. No charge checking. More ATMs than any bank in existence, branches convenient to me (one is 400 yards from my office).

Besides the online banks, I have no local bank.
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learning_head
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Re: Cash in a local bank or credit union

Post by learning_head » Wed Oct 04, 2017 9:01 am

I think the answer would depend on how much you rather pay by cash vs check / bill pay / credit card. I am assuming a check would be as good as cash in case of emergency, in which case, I would think less than a thousand or few hundred at home would be more than enough.

Am I not thinking of some emergencies where cash is better?

Of course if you have regular expenses you want to pay in cash only (some bars, handyman work, cash-only grocery, taxi, etc?), then you'd keep what you need for those I imagine plus buffer that makes you feel comfortable for such expenses.

I keep minimal $$ at the local bank, just so I can transfer money in there from my primary remote bank to withdraw for cash if/when needed. I almost never use it. I can write out checks to my remote bank acct for very rare occasions that I can't pay either with credit card or bill pay (e.g. for tax payments, once a year).

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Re: Cash in a local bank or credit union

Post by Grt2bOutdoors » Wed Oct 04, 2017 9:08 am

About four weeks worth in a checking account, replenish with a couple of clicks from online bank/brokerage if needed.
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pennstater2005
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Re: Cash in a local bank or credit union

Post by pennstater2005 » Wed Oct 04, 2017 9:18 am

No local banking now for the last few years. Have yet to have an incident where I needed it. No cash on hand either. I don't need free cookies.
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takeshi
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Re: Cash in a local bank or credit union

Post by takeshi » Wed Oct 04, 2017 9:24 am

gasdoc wrote:
Tue Oct 03, 2017 12:29 pm
how much do Bogleheads typically keep in a local bank or credit union?
I don't. We really don't have much of a need for cash. That said, you need to do what works for you.

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Re: Cash in a local bank or credit union

Post by Grt2bOutdoors » Wed Oct 04, 2017 9:29 am

pennstater2005 wrote:
Wed Oct 04, 2017 9:18 am
No local banking now for the last few years. Have yet to have an incident where I needed it. No cash on hand either. I don't need free cookies.
I go for the free coffee, my kid tags along for a free lollipop! :)
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KlingKlang
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Re: Cash in a local bank or credit union

Post by KlingKlang » Wed Oct 04, 2017 9:31 am

The primary reason that I always maintain accounts at a B&M bank within walking distance of our home is because my wife will not come closer than 20 feet to a computer or ATM, so if I drop dead she will need a physical location with human employees that she can get to for funds.

Our checking account at this bank has a minimum balance requirement of $15K to get interest and free checks, when it gets too close to that amount I transfer more in from our Vanguard MM accounts.

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Re: Cash in a local bank or credit union

Post by goingup » Wed Oct 04, 2017 9:34 am

I use a big name brick and mortar bank which has a branch walking distance from our home for checking/savings. There's a permanent $2K in savings for emergencies, though I've never had one. The savings account is pretty redundant because there's always $5-10K in checking. I like having a one financial institution that I can walk into and access money, though I probably go inside the branch once a year.

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Re: Cash in a local bank or credit union

Post by aristotelian » Wed Oct 04, 2017 10:33 am

We use our checking account with local brick and mortar chain as our primary cash account. I like to keep it around $10k so I don't have to worry about balancing a checkbook or overdrafts. We opened it years ago and it's where our paychecks go for direct deposit. It never really occurred to me to use a non-local bank for a primary account. What would be the reason to do so? The high interest checking deals I have seen all require debit card purchases and such.

I do have a Schwab checking account for the free ATM withdrawals when traveling, and I use it to hold funds for property taxes and such.

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pennstater2005
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Re: Cash in a local bank or credit union

Post by pennstater2005 » Wed Oct 04, 2017 10:38 am

Grt2bOutdoors wrote:
Wed Oct 04, 2017 9:29 am
pennstater2005 wrote:
Wed Oct 04, 2017 9:18 am
No local banking now for the last few years. Have yet to have an incident where I needed it. No cash on hand either. I don't need free cookies.
I go for the free coffee, my kid tags along for a free lollipop! :)
Don't let my kids know they're giving away lollipops!!!
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Re: Cash in a local bank or credit union

Post by indexfundfan » Wed Oct 04, 2017 10:40 am

I do my bill pay and main checking activities online. So I only keep $200 in a local BofA checking account. This is linked to my Merrill Edge brokerage account which I can transfer cash over instantly if needed (using margin).
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Re: Cash in a local bank or credit union

Post by FrugalInvestor » Wed Oct 04, 2017 10:45 am

We're retired and living off our investments. We transfer enough to pay our monthly bills once we know the amounts. We also add between $500 and $1,000 for spending cash and unforeseen needs. This stays in the local bank because we like and use their billpay system to push payments. We also utilize their in-person services (i.e. notary) from time to time, use their cash machines, and take advantage of their free checking.
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learning_head
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Re: Cash in a local bank or credit union

Post by learning_head » Wed Oct 04, 2017 11:15 am

aristotelian wrote:
Wed Oct 04, 2017 10:33 am
It never really occurred to me to use a non-local bank for a primary account. What would be the reason to do so? The high interest checking deals I have seen all require debit card purchases and such.
I have used remote CU or Bank as my primary institutions over years. None of them had interest checking deals you refer to. I use them because ...
(a) they have better savings acct rate than any local banks
(b) i like my incoming cash flows come directly to high paying savings accts
(c) i like to move money from savings accts instantly to checking acct in same place as needed for bill pay, etc
(d) they have great (and often 24/7 depending on institution) service
(e) they have better websites; esp. places that specialize in online banking rather than having it as a side business
(f) they have better features than all local banks, including:
- very high limits for ACH transfers in and out of the bank / CU to wherever I need to direct money
- free checks (there are some limits but still)
- no minimum balances
- history of occasionally good CD deals right there
- probably forgetting others ....

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gasdoc
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Re: Cash in a local bank or credit union

Post by gasdoc » Wed Oct 04, 2017 11:26 am

Thanks, Folks,
My post is specifically for those people that do the majority of their "banking" via a remote, internet location, and keep a local bank for emergencies. How much cash do you keep in the local bank for emergency purposes? Thanks! (All responses are appreciated, by the way.)

gasdoc

MathWizard
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Re: Cash in a local bank or credit union

Post by MathWizard » Wed Oct 04, 2017 12:20 pm

I typically keep about 5 months worth of expenses in the local CU.

I just replaced a car, so it is down right now, but building back up every month.

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Re: Cash in a local bank or credit union

Post by SuperGrafx » Wed Oct 04, 2017 12:20 pm

gasdoc wrote:
Wed Oct 04, 2017 11:26 am
Thanks, Folks,
My post is specifically for those people that do the majority of their "banking" via a remote, internet location, and keep a local bank for emergencies. How much cash do you keep in the local bank for emergency purposes? Thanks! (All responses are appreciated, by the way.)

gasdoc
I have a remote internet savings account (in addition to my Vanguard and other brokerage accounts).
But I do keep some funds in a physical/local bank.
I keep around $10,000 in the local bank, which is my primary checking account.

Very handy to have local ATM's and the ability to walk into a branch and easily deposit checks, coins and redeem old savings bonds.

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Re: Cash in a local bank or credit union

Post by Broken Man 1999 » Wed Oct 04, 2017 1:33 pm

We keep only living expenses in our credit union accounts. Wife and I both get SS direct deposit, plus I get funds from MetLife for disability claim.

We keep zero $$$ for emergencies, as we use 0% interest rate credit cards to smooth out unexpected expenses.

I try to keep as much as we can in our retirement portfolio, and just enough in the credit union to meet expenses.

Broken Man 1999
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Re: Cash in a local bank or credit union

Post by mega317 » Wed Oct 04, 2017 1:50 pm

My answer to your question is 1-2 months expenses since my local bank is my hub.

However, the reason it is my hub is by accident. I have had a Chase account since I was probably 5 years old (well, Bank One at that time). Now I have all my bill pay set up, three credit cards, mortgage, and auto loan all with them. In order to keep checking free I direct deposit there.

If I was starting from scratch I would do everything through an online bank, and keep $1 at a credit union in case I needed some special signature or something. It's just not worth it to me to change everything.

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Re: Cash in a local bank or credit union

Post by midareff » Wed Oct 04, 2017 4:31 pm

I keep $5.00 because it's a nice round number. Every dollar I keep locally at at .1% or less interest is a dollar that isn't at Ally making 1.2% or 1.5%.

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gasdoc
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Re: Cash in a local bank or credit union

Post by gasdoc » Wed Oct 04, 2017 6:58 pm

midareff wrote:
Wed Oct 04, 2017 4:31 pm
I keep $5.00 because it's a nice round number. Every dollar I keep locally at at .1% or less interest is a dollar that isn't at Ally making 1.2% or 1.5%.
Midareff, do you find it at all embarrassing to go into the branch knowing they are looking at your $5 balance? I went into our CU to add my wife as an authorized agent recently. Our balance at that time was $25 savings and $0.24 checking. I have since transferred $1,000.

Gasdoc

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Re: Cash in a local bank or credit union

Post by midareff » Thu Oct 05, 2017 7:54 am

gasdoc wrote:
Wed Oct 04, 2017 6:58 pm
midareff wrote:
Wed Oct 04, 2017 4:31 pm
I keep $5.00 because it's a nice round number. Every dollar I keep locally at at .1% or less interest is a dollar that isn't at Ally making 1.2% or 1.5%.
Midareff, do you find it at all embarrassing to go into the branch knowing they are looking at your $5 balance? I went into our CU to add my wife as an authorized agent recently. Our balance at that time was $25 savings and $0.24 checking. I have since transferred $1,000.

Gasdoc
Not in the least Gasdoc.... I've been retired since April 2012 and only go there when I have transferred in about $5,000 in cash I need to withdraw for an overseas trip that requires cash. Otherwise the account sits with the only activity being Ally Bank transferring in $.25 (twenty-five cents) and withdrawing 11 and 14 cents monthly, to avoid the account being tagged inactive. Why should I feel embarrassed for keeping minimal money there when they don't pay me for the use of it. No pay, no money.

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Re: Cash in a local bank or credit union

Post by Naismith » Thu Oct 05, 2017 8:04 am

I also keep $1000 in the local credit union.

I use the credit union for notary service and Medallion Signature guarantees. Also, they are one of my oldest accounts (20+ years), which helps my credit score.

But it is amazing how many places we need a notary nowadays. School permission slips for field trips!

In my case, it helps that the credit union is open on Saturdays until 1 p.m. Without weekend hours, I would have closed that account years ago.

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Re: Cash in a local bank or credit union

Post by Toons » Thu Oct 05, 2017 8:25 am

We keep about 500-800 in a local Suntrust Bank.
No fee,no interest checking account.
Like you ,the majority of cash is at CapOne checking,Money Market.
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Re: Cash in a local bank or credit union

Post by learning_head » Thu Oct 05, 2017 8:45 am

midareff wrote:
Thu Oct 05, 2017 7:54 am
the account sits with the only activity being Ally Bank transferring in $.25 (twenty-five cents) and withdrawing 11 and 14 cents monthly, to avoid the account being tagged inactive.
Just curious - why these odd amounts and so many transactions?

I just setup auto ACH transfers of $0.10 back and forth every half year for each account where I have minimal balances. (Why not $0.01? I don't know :-) )
Last edited by learning_head on Thu Oct 05, 2017 9:18 am, edited 1 time in total.

dbr
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Re: Cash in a local bank or credit union

Post by dbr » Thu Oct 05, 2017 9:06 am

I don't "keep" money at a bank or credit union. I do have bank accounts that receive income and disburse to cover expenses. One might imagine that for a typical household cash flow such accounts go up and down by some few thousands of dollars every month. It is most helpful to keep a local account, safe deposit box, etc.

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Re: Cash in a local bank or credit union

Post by jebmke » Thu Oct 05, 2017 9:10 am

I ditched our local bank years ago. I tried stopping in for the free coffee but at 6:30 there wasn't anyone there.
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Re: Cash in a local bank or credit union

Post by midareff » Thu Oct 05, 2017 9:16 am

learning_head wrote:
Thu Oct 05, 2017 8:45 am
midareff wrote:
Thu Oct 05, 2017 7:54 am
the account sits with the only activity being Ally Bank transferring in $.25 (twenty-five cents) and withdrawing 11 and 14 cents monthly, to avoid the account being tagged inactive.
Just curious - why these odd amounts and so many transactions?

I just setup auto ACH transfers of $0.10 back and forth every half year for each account where I have minimal balances.
Because the supervisor at the CU said that was the activity level that their computer would avoid for being flagged inactive.

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gasdoc
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Re: Cash in a local bank or credit union

Post by gasdoc » Thu Oct 05, 2017 9:23 pm

midareff wrote:
Thu Oct 05, 2017 9:16 am
learning_head wrote:
Thu Oct 05, 2017 8:45 am
midareff wrote:
Thu Oct 05, 2017 7:54 am
the account sits with the only activity being Ally Bank transferring in $.25 (twenty-five cents) and withdrawing 11 and 14 cents monthly, to avoid the account being tagged inactive.
Just curious - why these odd amounts and so many transactions?

I just setup auto ACH transfers of $0.10 back and forth every half year for each account where I have minimal balances.
Because the supervisor at the CU said that was the activity level that their computer would avoid for being flagged inactive.
Could you envision a situation where you would need a relatively large amount of cash without the ability to wait the 48 hours required for a transfer from CapitolOne360?

Gasdoc

learning_head
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Re: Cash in a local bank or credit union

Post by learning_head » Thu Oct 05, 2017 9:38 pm

gasdoc wrote:
Thu Oct 05, 2017 9:23 pm
Could you envision a situation where you would need a relatively large amount of cash without the ability to wait the 48 hours required for a transfer from CapitolOne360?
Do you have one in mind? I am having difficulty imagining one. I assume you are saying I could not use a credit card or personal check? ...
Other backups might include:
- wiring money
- credit card cash advance (though I normally set those to $0 for security)
- how quickly can I cash an I-bond at a bank?
- asking neighbors / friends / co-workers for money :-)
- a quick-loan place?

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Re: Cash in a local bank or credit union

Post by Dead Man Walking » Thu Oct 05, 2017 10:53 pm

My friends and family think that I'm a paranoid geezer. I have a year or more of expenses in local banks. Due to several buyouts, my primary bank is one of the large national banks. I don't have any accounts with online only banks. I have deposit accounts with two community banks from which I only receive paper statements. Both offer either CDs or money market accounts that are competitive with online banks. I am willing to accept slightly lower rates to have the security of accounts that don't have internet footprints. I realize that any institution can be hacked, but I know that I won't be hacked on my end. After the Equifax mess, I think my paranoia may be justified.

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Re: Cash in a local bank or credit union

Post by The Wizard » Fri Oct 06, 2017 2:32 am

gasdoc wrote:
Wed Oct 04, 2017 11:26 am
Thanks, Folks,
My post is specifically for those people that do the majority of their "banking" via a remote, internet location, and keep a local bank for emergencies. How much cash do you keep in the local bank for emergency purposes? Thanks! (All responses are appreciated, by the way.)

gasdoc
That distinction isn't meaningful for me.
My credit union checking account is the only "bank account" I have anymore with meaningful funds in it.
That CU is local to my former place of employment and not so local to my home.
But there are lots of free networked ATMs around that give me cash with no fee.

And "emergencies" are not a factor in where I keep my money.
I can't recall any emergency where access to money was a big problem in the past six decades.

As to dollar amounts, I recently revised my scheme.
I now keep an upper limit of $10,000 in my checking account after certain bills are paid. Any excess gets moved to my taxable investment account.

I have three paydays per month in retirement, so I generally pay off both CC balances and then see where my balance is.
Other bills get paid as they come in; I don't put them aside for next payday.

So as a practical matter, my checking account balance tends to be between $7000 and $10,000 most of the time...
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gasdoc
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Re: Cash in a local bank or credit union

Post by gasdoc » Fri Oct 06, 2017 8:28 am

learning_head wrote:
Thu Oct 05, 2017 9:38 pm
gasdoc wrote:
Thu Oct 05, 2017 9:23 pm
Could you envision a situation where you would need a relatively large amount of cash without the ability to wait the 48 hours required for a transfer from CapitolOne360?
Do you have one in mind? I am having difficulty imagining one. I assume you are saying I could not use a credit card or personal check? ...
Other backups might include:
- wiring money
- credit card cash advance (though I normally set those to $0 for security)
- how quickly can I cash an I-bond at a bank?
- asking neighbors / friends / co-workers for money :-)
- a quick-loan place?
yes, Assuming you need cash- no credit card or check- though why would someone demand cash with less than 24-48 hours notice? Do local banks stay open when the power goes out?

gasdoc

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midareff
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Re: Cash in a local bank or credit union

Post by midareff » Fri Oct 06, 2017 10:14 am

gasdoc wrote:
Thu Oct 05, 2017 9:23 pm
midareff wrote:
Thu Oct 05, 2017 9:16 am
learning_head wrote:
Thu Oct 05, 2017 8:45 am
midareff wrote:
Thu Oct 05, 2017 7:54 am
the account sits with the only activity being Ally Bank transferring in $.25 (twenty-five cents) and withdrawing 11 and 14 cents monthly, to avoid the account being tagged inactive.
Just curious - why these odd amounts and so many transactions?

I just setup auto ACH transfers of $0.10 back and forth every half year for each account where I have minimal balances.
Because the supervisor at the CU said that was the activity level that their computer would avoid for being flagged inactive.
Could you envision a situation where you would need a relatively large amount of cash without the ability to wait the 48 hours required for a transfer from CapitolOne360?

Gasdoc
Yes, I can. A medical issue with my wife's mother or daughters in Bangkok and she needs to leave first available flight tomorrow. Stop by the CU on the way to the airport after an overnight EFT or wire.

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Re: Cash in a local bank or credit union

Post by learning_head » Fri Oct 06, 2017 11:38 am

^ not following.. if you are talking about purchasing flight in US, they would accept credit cards. If you are talking about purchase made in Bangkok (and they don't accept CC or check?), then they can't use cash from your local CU anyway, here in US...

Question was "situation where you would need a relatively large amount of cash without the ability to wait the 48 hours required for a transfer from CapitolOne360"

dpc
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Re: Cash in a local bank or credit union

Post by dpc » Fri Oct 06, 2017 11:47 am

A bit off-topic, but the events in Puerto Rico remind me that money in a checking account in a local bank or credit union is not cash. Puerto Rico has become a cash economy and the ATMs are out of cash or have no power. I don't have an answer, but something to keep in mind.
"Worrying is like paying interest on a debt that you might never owe" -- Will Rogers

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midareff
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Re: Cash in a local bank or credit union

Post by midareff » Fri Oct 06, 2017 11:59 am

learning_head wrote:
Fri Oct 06, 2017 11:38 am
^ not following.. if you are talking about purchasing flight in US, they would accept credit cards. If you are talking about purchase made in Bangkok (and they don't accept CC or check?), then they can't use cash from your local CU anyway, here in US...

Question was "situation where you would need a relatively large amount of cash without the ability to wait the 48 hours required for a transfer from CapitolOne360"
I'm sorry you don't seem to understand it from my explanation. Let me try again in a situation I hope never happens. Let's suppose an extremely unfortunate thing happens.. my MIL has a heart attack, a stroke, gets hit by a car, or an accident with one of her daughters, or her grandson. I can have Ally cash in my CU to give her on the way to the airport the next AM. .. flights to BKK don't happen every hour. Taxis and tuk-tuks don't take plastic in BKK and she will need cash money, not plastic, for lots of things from medical supplies for food for her and so forth. Many stores don't take plastic there yet. Of course I would purchase the ticket by plastic for her here, that was never the issue.

killjoy2012
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Re: Cash in a local bank or credit union

Post by killjoy2012 » Fri Oct 06, 2017 12:18 pm

dpc wrote:
Fri Oct 06, 2017 11:47 am
A bit off-topic, but the events in Puerto Rico remind me that money in a checking account in a local bank or credit union is not cash. Puerto Rico has become a cash economy and the ATMs are out of cash or have no power. I don't have an answer, but something to keep in mind.
Agreed. For the typical Boglehead that's only using a local bank/CU for a very small (<$5k) emergency fund, I think you'd be better off just storing the cash somewhere in your house. Go buy a cheap safe or use a locked cabinet - that way, the cash is in your hand in a SHtF situation. And if it's a less dire situation, you can likely just transfer the money electronically (or use a credit card). TBH, we're not that far from being a cashless society now - short of an emergency situation like Puerto Rico.

I do still have a local CU account, but I also still use it like a normal account -- paychecks get deposited there, active checking account for bills that won't accept ACH or CC, etc. But even then, my need is growing less by the day. If my city started accepting ACH or CC for property taxes and water/sewer bills, I could just cease having a checking account!

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Phineas J. Whoopee
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Re: Cash in a local bank or credit union

Post by Phineas J. Whoopee » Fri Oct 06, 2017 1:12 pm

Naismith wrote:
Thu Oct 05, 2017 8:04 am
...
I use the credit union for notary service and Medallion Signature guarantees. Also, they are one of my oldest accounts (20+ years), which helps my credit score.
...
Unless you also mean a loan or a credit card, no, deposit accounts don't appear on credit reports, and therefore don't affect credit scores.

It might be the case that some individual lender takes such things into account, but credit scores don't.

PJW

Cash
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Re: Cash in a local bank or credit union

Post by Cash » Sat Oct 07, 2017 4:09 pm

midareff wrote:
Fri Oct 06, 2017 11:59 am
I can have Ally cash in my CU to give her on the way to the airport the next AM. .. flights to BKK don't happen every hour. Taxis and tuk-tuks don't take plastic in BKK and she will need cash money, not plastic, for lots of things from medical supplies for food for her and so forth. Many stores don't take plastic there yet. Of course I would purchase the ticket by plastic for her here, that was never the issue.
You mean you would withdraw the cash in Thai baht? Otherwise, she would need to exchange your dollars for baht at the airport...which she could probably do more easily by just withdrawing directly from the account using an ATM card at a Thai ATM machine or Travelex at the airport.

I would recommend against taking a lot of dollars on a last-minute international flight for a number of reasons, not the least of which is she might get flagged as a suspicious traveler, undergo a more intensive search, and potentially have the money seized under suspicion of being a drug courier.

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Re: Cash in a local bank or credit union

Post by Cash » Sat Oct 07, 2017 4:14 pm

I keep $2500 at TD Bank so that I can get free ATM withdrawals, write checks without worrying about someone draining my primary account of $13,000 (if the account needs to be frozen and/or closed, no problem), and for random things that are more efficient in person. Like depositing cash, getting cashier's checks, or like today, depositing a check that my mother-in-law signed over to me.

Broken Man 1999
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Re: Cash in a local bank or credit union

Post by Broken Man 1999 » Sat Oct 07, 2017 4:54 pm

Cash wrote:
Sat Oct 07, 2017 4:14 pm
I keep $2500 at TD Bank so that I can get free ATM withdrawals, write checks without worrying about someone draining my primary account of $13,000 (if the account needs to be frozen and/or closed, no problem), and for random things that are more efficient in person. Like depositing cash, getting cashier's checks, or like today, depositing a check that my mother-in-law signed over to me.
Some of the traditional services one might receive at a brick and mortar bank are slipping away, or are being offered in a different manner.

My credit union no longer has tellers at the various branches. If you have cash to deposit, or withdraw, you complete the transactions via an ATM-like terminal inside. If you need assistance, you sign into your account, and a "pool" teller will appear on the screen to assist you. Each site does have personnel to open accounts, help with various paperwork for opening/closing accounts, notary services, or loans and such. But the people on site have no access to money, they can't dispense it, they can't accept it.

I suppose for efficiency's sake it is a very good system, as a large pool of tellers available across the large number of branches would be easier to staff than 20-30 branch locations. It sure blurs the line between brick and mortar and online banks.

My wife hates it, as she is used to using the drive-thru lane for the majority of our needs. That option no longer exists, though.
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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