Earlier this week I went to my bank, Chase (JP Morgan) to dispute this service charge I got in one of my checking accounts. They informed me, to my surprise that last month they had made some changes which affected my bank accounts. They had sent those letters of changes last year which I couldn’t remember having read. They had sent so many I just ended up skimming through them quickly and throwing it away after. So basically it was my ignorance. Anyway, the bank rep graciously reversed that charge for me. However I was disappointed to hear why it happened. Ever since I opened my account when it was still Washington Mutual, I enjoyed free checking and savings account with no minimum maintaining balance. I also got free checks for life. With these advantages I didn’t hesitate to close my Bank of America accounts in favor of Chase. I wasn’t pleased with BoA anymore since it didn’t give me any consumer benefits.

So it was to my utter dismay and disappointment that Chase had stripped me off the wonderful benefits I was enjoying. No more free checks which would force me to compose my checks thriftily. Then I had to maintain a DAILY minimum balance of 1500 if I can’t do direct deposit of my salary otherwise incur a 10USD fee.  I had a hard time maintaining a monthly minimum of 1500 for my BoA account in the past and now I need to do that daily?!!! What a conundrum! It made me think to withdraw all my money and just keep it in a safe place in the house! It wasn’t earning good interest anyway.

In conclusion, I believe I have to look for a new bank. Too bad I really liked Chase.

Related posts:

1. Way to save with Wachovia's Way-to-save program
2. JPMORGAN/CHASE BOUGHT WAMU
3. THE WAMU DILEMMA

Now where to put aside my hard-earned money? At present I have accounts in both Chase and Bank of America. Before when Chase bought Washington Mutual, I was really happy with WAMU because of its high APY for savings account. Then they also have high-yield interest for CDs with the lowest opening amount of 1000. Anyway those days are long gone. Both Chase and Bank of America have currently low APY interest for their savings accounts. Although Chase accepts a 1000 minimum cash for CD, the interest is only 0.25% for 6-12months.  What good is that, right? And Bank of America…well forget BA – no savings, lots of fees and high maintaining balance. I’m nearing in closing that account. CDs right now are not that appealing if you want to earn good interest for your money.

So I stumbled upon Wachovia when I was doing some banking for my employer. Wachovia is offering a 5% APY for checking account linked with their Way-to-Save program. The checking account is completely free – no hidden charges and only low maintaining balance. (300USD) So how this work is, every month Wachovia will automatically transfer 100USD from the checking to the savings account. And other transactions will automatically transfer 1USD to the savings account. This will yield 5% APY. Then the bank gives additional 5% bonus from the money you saved. It’s like earning a lot of money from the bank which doesn’t happen at all. It’s also like CD but the money is moving instead of locked for a time-being. But unlike CD, this one has way much higher APY.

When you enroll into the program, the 5% is guaranteed for the first year. After that it’ll be 2% in the 2nd and 3rd year. Still higher than other banks. Then it turns into a regular savings account with regular interest after the 3rd year. By then you have a choice of closing that account.  But for now all I need to do is just let my money sit in that account and earn myself good interest. Way to save, right?

To learn more about Wachovia’s Way to Save, click here.

Related posts:

1. Banking woes
2. The Bank Switch
3. My bank is going bankrupt!!!!

Ok so JPMorgan/Chase bought WAMU on Sept 25, 2008. The following day news reports of WAMU customers withdrawing their money from WAMU out of fear that they’ll lose money. I just heard a while ago that about $17 billion were withdrawn from WAMU in the last 2 weeks. I’m one of those who withdrew my money. But I thought now that JpMorgan bought Wamu, everything would be fine already. I read the FAQs of Chase on WAMU and it seemed very straightforward…basically my money is safe. And it’ll still be a long time before they change the system – like the benefits of being a WAMU customer such as free checks for life, 4% APY, waived overdrafts, etc. So do I transfer my money back again to WAMU? I’m still worried especially when news repeatedly say that WAMU is the biggest banking failure ever. How will that give me confidence to stay put in WAMU, right?

I voiced my concerns to the WAMU teller earlier when I made a deposit. She said that everything’s fine that they’re not going anywhere. WAMU stays the same except it’s been bought by JP Morgan. IF ever there would be say a bankruptcy in the future (which is unlikely she said because JPMORGAN is a big banking institution), my money is FDIC insured and there would be no problem or delay in transaction if I want to withdraw my money.

So going back to the question: do I transfer my money back to WAMU? I’m only earning a pittance of interest in Bank of America (they only have .25% APY) and I really would like to avail of WAMU’s 4% APY. Hmmm…..At this point I would like to let the dust settle first before I make a move. But I guess it wouldn’t hurt me to transfer part of my money back to WAMU. I think there wouldn’t be any problems anyway…hopefully…JPMorgan is pretty solid. The last time I looked its stocks are still up. Furthermore, I’ll be withdrawing my money again in 2 months for my vacation so why not enjoy the 4% APY, right?

Related posts:

1. JPMORGAN/CHASE BOUGHT WAMU
2. The Bank Switch
3. Way to save with Wachovia's Way-to-save program

It’s confirmed. WAMU is gone and is now bought by JPMorgan (official Sept 25, 2008). The good news is my banking in WAMU still remains the same. Cool!! I can transfer my money back from Bank of America to WAMU and enjoy the 4.00% APY!!!! Whoopppeee! For those WAMU account holders, here are the FAQs taken from http://www.chase.com/welcomewamu

Q. What will happen to my account at WaMu? And to my branch?
A. It’s business as usual. As of September 25, 2008, JPMorgan Chase has assumed the deposit and loan accounts, and all branches, of Washington Mutual. You can continue to access your accounts just the way you’ve accessed them in the past: use your same branch, same debit, credit and ATM cards, same checks.

Q. Is my money safe?
A. Yes; in addition to FDIC insurance, now you’re assured your bank is backed by the strength and security of JPMorgan Chase. If you have money in both banks, your deposits have separate FDIC insurance for up to six months. Come see us and we can help you review your coverage.

Q. What if I have more than $100,000 at WaMu?
A. Your money is secure and now protected by the strength of Chase. Chase assumed all deposits of Washington Mutual.

Q. When can I bank at Chase branches in my area?
A. We’ll be working hard to combine systems as quickly as possible so you can begin to enjoy expanded branch convenience in your area, and we expect system changes to begin late next year. We’ll let you know in advance of any changes; in the meantime, simply continue to bank at WaMu branches as you do today.

Q. Do my direct deposit, automated payments and transfers remain the same?
A. Yes. These services all continue for you without interruption or action on your part.

Q. Where do I send my credit card and loan payments?
A. There is no change in how or where you make payments; payment instructions and addresses remain unchanged.

Q. I have a Chase credit card, car loan, and mortgage. Can I make payments at a WaMu branch now?
A. Not yet! We’ll let you know when you can make Chase credit card, car loan, mortgage or other loan payments at WaMu branches, or vice versa.

Q. I have deposit accounts at both WaMu and Chase. Are both of my accounts insured?
A. Yes! Your deposits are insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

Q. I’m a small business owner. What will change for my business?
A. Immediately, no change at all – bank just as you do today. As our systems merge, we look forward to bringing you innovative services ranging from online invoicing to convenient ways to help you manage your cash flow. Chase is a national leader in business banking services, and is the nation’s #1 SBA lender.

Q. I have a relationship with the WaMu Commercial Group. What will change for my business?
A. Immediately, no change at all – work with the Commercial Group just as you do today. As our systems merge, we look forward to bringing you innovative services. Chase is a national leader in commercial lending and cash management solutions.

Ok. As long as my money is safe and the benefits are still the same, I’ll continue to patronize this bank.

Related posts:

1. THE WAMU DILEMMA
2. My bank will survive?????
3. The Bank Switch

The Wall Street these past weeks until now are in such a great financial turmoil. Big old lending companies are going bankrupt – Freddie Mac/Fannie Mae, Wamu, AIG, Merrill Lynch, Lehman Brothers…. I don’t usually get myself updated with this kind of news (I still live a “sheltered” existence) I’ve just heard about them in the news everyday because my boss is into stock market. Just earlier the big news was Bank of America bought Merrill Lynch, while AIG is still scrambling to look for a buyer; Lehman Brothers filed for bankruptcy; Freddie Mac/Fannie Mae have been saved by the government already. What in the world is happening? Why all of a sudden? What went wrong? They said it’s all rooted in the failed housing loans they gave out to homebuyers. The buyers can’t pay the interest/monthly fee so the bank foreclose the house and they can’t find anyone to buy the house from them. So they’re left with houses without generating income from it – no money coming in while continue to have huge operating expenses including maintenance of the houses. I think this is an incomplete explanation…as I’ve said I really don’t know anything about these stuffs.

So what has happened to WAMU? Its stocks continue to decline. It has still not filed for bankruptcy. Earlier I withdrew almost all my money in the savings account leaving only $90 with hopes of WAMU surviving and transferred it to BoA. During the transaction, I asked the teller when Wamu is closing. The teller said that Wamu is not closing. I asked her who’s buying WAMU. She said that Chase maybe. Wouldn’t it be in the news if JP Morgan/Chase has plans of buying WAMU? Well I haven’t heard of it. Apparently the news nowadays is not mentioning the fate of WAMU anymore. It’s I think, for the financial analyst/media/mass etc a forgone conclusion that Wamu is going to be bankrupt soon. All I heard from the news is that JP Morgan is one of the institution that may buy AIG. Despite those facts, what she said gave me a flicker of hope. I really like what I have in Wamu right now and if it survives whoopee for me!!!!

I really pray that the stock market will go up again. That the economy will have nicer outcomes. I felt sorry for those people in Lehman Brothers who were videoed leaving the building with their belongings. Lots of people have lost their jobs, lots of people have lost their homes, lots of people are without jobs….I pray that everything will improve for the good of everyone.

Related posts:

1. The Bank Switch
2. My bank is going bankrupt!!!!
3. THE WAMU DILEMMA