newadventure

I am sure this has been done to death, but i can't find anything on a search. Now you can get some reasonable interest rates on savings (2.25%), i am looking at some online savings accounts here in the US. I got half way through applying for an Ally bank and it asked me if I can certify i am exempt from FATCA reporting. I am a permanent resident here but have accounts back in the UK (all duly reported) so i don't think i can agree to this. I don't know if it is usual to ask this, anyone know of any banks that don't ask this?

MidAtlantic

I don't know the answer to the FATCA question. I do not recall a question like that on any account I have opened.
This is a good site for seeing what savings and CD accounts are available: https://www.depositaccounts.com/

tht

newadventure

@MidAtlantic - thanks for the link - yes, that has the Ally bank account i was trying to open. I did try phoning in, but the person on the other end was useless
@tht - yes, FATCA. I don't know why they would care if i had to report my foreign accounts under FATCA or not, i don't see how it impacts them. It looks like they are asking me to complete their online equivalent of a W-9. Can get 2.25% with no minimum and instant access with some of these accounts

theOAP

There was another individual on BE in 2017 attempting to open an account with Capital One 360 who ran up against the same problem with a FATCA question.

US banks and FATCA reporting

Olly_

The question relates to the specific institution that you're opening an account with, not if you have an overall FATCA reporting requirement as an individual. Ally is a US bank so there is no FATCA requirement and you can safely answer no.

Incidentally CIT Bank has a savings account that pays 2.45% if you put $25k in there or pay in $100 a month so you might be better off with that.

Banks should make it clearer - the wording comes from a W-9 and isn't relevant most of the time. I just opened a Chase YouInvest account and it specifically says 'not applicable for this account':

newadventure

Olly - thanks, that makes sense and is exactly the question i put to the person on the end of the phone. Took them ages to answer (including a call to 'back office' who replied something about withholding) but they were unable to clarify. I might try again later and hope to speak to someone a bit more clued up. I saw the CIT bank offer, but the 2.45% applies ONLY to the $100 per month, or you need to keep a min $25K in there.

Olly_

That's not true, you earn 2.45% on the entire balance as long as you deposit at least $100 a month or keep $25,000 in there.

I opened an Ally account just before Christmas to take advantage of a promo they were running and to be honest I wasn't all that impressed, they don't seem to trust you to do one day outbound transfers of your own money so it takes three business days to move money out. Now they've paid the promo cash I've moved all my money out and closed the account down.

With CIT Bank if you transfer money out via ACH it appears in the destination account the next business day.

newadventure

Olly - ok, have just re-read the Ts and Cs and looks like you are correct. Thanks for pointing that out

newadventure

In the end i went for a Marcus account. Very easy to set up and it phrased the relevant question correctly. Into the arms of the vampire, face-eating squid i go

Hotscot

FWIW, if you have enough cash that the paltry interest rates available would make a significant difference then you might like to consider a monthly income brokerage account with say, Vanguard, Fidelity etc...Get your money working for you.

For example
https://investor.vanguard.com/mutual...aged-payout/#/

Couple of hundred dollars may be handy come Christmas
YMMV

mrken30

These types of accounts are generally not FDIC insured. Some people may feel uneasy that these come under SPIC.

Hotscot

That's why the casual FWIW and YMMV.

But generally the biggies like Vanguard and Fidelity are relatively secure.
I know where my assets are...hardly a real dollar to my name.

Pulaski

"Generally not" ….. by which you mean "definitely not".

"FDIC = Federal Deposit Insurance Corporation", with the key word being "deposit", meaning "money, US$, deposited in a bank account. Other investment accounts are not covered, ever.

Granted, there are some brokerage accounts with a linked bank account, and you can move money back and forth between a US$ deposit (which probably is FDIC insured, because banks in the US are required to be FDIC insured for consumer deposits up to the current limit, which is $250,000 per person, per bank) and brokered investments - primarily, bonds, equities and mutual funds, which most certainly are not FDIC insured. But under no circumstances will you find a regular, run-of-the-mill brokerage account that is covered by FDIC insurance.

Pulaski

Agreed, me neither - the primary beneficiary of a bank deposit is the bank. I prefer my money to be actually working for me, not lying around in a deposit account while moonlighting for the bl00dy bank!