Good U.S. Banking Deal For Current/Ex U.S. Military Personnel

[jfchandler]

One of the banking blogs I read had an item recently that caught my attention...as someone particularly interested in avoiding whenever possible both the 1% foreign currency fee that VISA and MC charge on foreign ATM transactions, as well as the 150 baht Thai banks now charge for ATM withdrawals using most foreign ATM cards.

New Hampshire-based Service Credit Union -- which is open to membership for all current and former U.S. military personnel (uniformed and civilian) and their family members -- is now offering a checking account that it says will automatically refund any of those kinds of ATM fees...the VISA/MC kind and the local bank kind...worldwide.

The requirements for this under the credit union's Service Plus+ Checking account include maintaining at least a $1,500 daily balance and setting up payroll (or pension I assume) direct deposit into that account. The credit union's web site says any ATM fees incurred will be refunded at each month's end assuming the account qualified during that month.

Here's a web page on the CU's no ATM fees offer. Here's their page on their Service Plus+ Checking Account. And here's their page explaining their membership eligibility criteria. Apart from the military connections, they also allow members who reside in a few limited areas of the U.S. Northeast.

I don't qualify for the account because of no military connection. But I do wish more U.S. banks and credit unions would offer something like this of benefit to ex-pats and ex-pat hopefuls...

[jfchandler]

Well... I had a crazy thought after my original post...and I just checked with the Credit Union via online chat, and came up with a surprising answer...

It turns out, I am eligible to join this particular credit union... because my father served in the Army a LONG time ago... And as his son, I'm eligible as the family member of a retired/former military personnel.

I asked what if any proof/documentation the CU would ask as part of the account opening process, and the CSR I spoke with just said they'd ask what branch of the military, what years and where stationed...

WOWOW... What a surprise!

[lopburi3]

*Some restrictions may apply overseas.

I suspect you had better get that disclaimer defined before you start counting your eggs.

[Pib]

Agree. When looking at their fee schedule at link http://www.servicecu.org/feesRates/1102_FeeSchedule_4-15.pdf it had some fine print stating:

† Non-SCU ATM fees do not include fees imposed by foreign ATM owners.

[jfchandler]

I think you guys are misperceiving this...

The deal about all ATM fees being reimbursed via that ONE checking account is a NEW promotion for them.... You can clearly see that from their home page...

The info on the promotion page is very clear about this offer being to reimburse ALL ATM fees, if the account holder meets the pretty small requirements about min balance and direct deposit.

That doesn't mean they are making the same offer for all their other accounts. They are not. And in my reading, it looked like they had not updated all their other web pages to be consistent with the one of the promo offer.

That doesn't mean the promo offer about ALL ATM fees being refunded is not correct.

Here's the language from the promo page. I'd say it's pretty clear they are including ATM fees charged by foreign country banks such as here in Thailand. Otherwise, the headline and bolded text makes no sense and have no meaning:

There are 1.8 Million ATMs

around the globe

We rebate fees on all of them

Service Credit Union now offers ATM rebates on non-Service Credit Union ATM fees and foreign ATMs surcharges and Visa® International Service Assessment (ISA) fees [my emphasis added] on ServicePlus+ checking accounts for qualified members.

Rebates are unlimited and are automatically applied by the credit union to the member’s ServicePlus+ Checking and Visa accounts.

Just open a ServicePlus+ Checking account with direct deposit, keep a balance of $1500, and sign up for free E-statements. It’s that easy. We refund any ATM fees, surcharge fees from other financial institutions, plus Visa^® International Service Assessment (ISA) fees on your Service Credit Union credit and debit card.

Rebates are UNLIMITED. No receipts. No paperwork. No hassles. Just Member Service the way it should be!

To be eligible for this benefit, members must have ServicePlus+ Checking account and:

• Maintain Direct Deposit of your entire net pay
• Keep a Minimum Daily Balance of $1,500 or more
• Receive E-statements

*If you meet your eligibility requirements of direct deposit of entire net pay into a ServicePlus+ Checking (account), plus a minimum daily balance of $1,500 in the account, and E-statements for the month, we refund Service Credit Union (SCU) ATM fees, ATM surcharges, and Visa® International Service Assessment Fees (ISA) resulting from SCU card use."

[jfchandler]

Yes, I see that language at the bottom of the CU's Fees Schedule. You're definitely misreading it, as relates to their promotion.

The little symbol before the sentence you quote below points back above in the document to where the CU talks about the fees THEY charge their account holders for their accounts, in general, for using non SCU ATMs, e.g. $1.50 per withdrawal. So, they're basically disclosing, for their accounts in general, that's what SCU will charge, NOT INCLUDING whatever various amounts the other/foreign ATM operator will charge.

But the whole point of the promotion re their ServicePlus+ Checking account, if someone meets their small requirements, is that they're reimbursing ALL ATM fees and even the VISA 1% charge. Nothing in the Fees Schedule negates or contradicts that.

Agree. When looking at their fee schedule at link http://www.servicecu...hedule_4-15.pdf it had some fine print stating:

† Non-SCU ATM fees do not include fees imposed by foreign ATM owners.

[greg67]

USAA Credit Union is not charging for ATM usage and will reimburse you as well. To avoid Foreign Currency Conversion charges I use a Capital One Visa.

[jfchandler]

Yes, USAA gets good reviews and comments for their banking accounts, and the added advantage in recent years is, their banking accounts are open to the general public, not just military connected folks....

Here's the info from the USAA web site re their Free Checking Account:

USAA does not charge a fee for the first 10 ATM withdrawals and refunds up to $15 in other banks' ATM usage fees each month.

[based on the Thai banks' ATM fee of about $4.60 (150 baht) per withdrawal, that $15 would cover 3 Thai ATM withdrawals per month.]

A 1% foreign transaction fee applies to withdrawals outside the United States.

No monthly service fees, no minimum balance required.

Free online and mobile banking

Indeed, Capital One's VISA credit and debit cards are good for not charging the 1% foreign currency fee, and they don't charge their own ATM fees for non-Capital One ATM use either in the U.S. or abroad... Same with Schwab and E*Trade Visa cards....

However, the Capital One rewards money market account does NOT refund the ATM fees charged by other banks, either in the U.S. or abroad, whereas Schwab and E*Trade do.

Regarding the USAA account vs. the Service Credit Union account, the SCU account offers unlimited monthly ATM and 1% for currency fee refunds, whereas the USAA account is limited to $15 per month in ATM refunds. Like SCU, if you qualify, the E*Trade and Schwab checking accounts also offer unlimited ATM refunds.

[Alwaysright]

If you qualify,and have a checking account in the US(or your country) get the AMX Gold card or above.I have a Blue and Gold.I can(if I want) go in once a month(Bangkok bank) and write a check for $2500.00 on my Gold and take an emergency $1000.00 on my blue card.The exchange rate is better than average.Bangkok bank charges 203 baht for the service.If you pay the AMX Blue before they post it(2/3 weeks),no charge,and no charge from AMX for the :Dcheck. :D :D

[Alwaysright]

I don't work for AMX or Bangkok bank.

[jfchandler]

I'm wondering if you're really getting such a good deal as you think/say you are...

After your post, somewhat dubious, I looked at the U.S. AMEX web site for their credit cards, blue and gold, and their terms and conditions disclosures.

The Gold and Blue Cards both say they charge a 2.7% fee on all foreign transactions.

The Gold Card also says its has a $125 annual fee after the first year of membership.

I'd assume the Gold Card begins charging interest on any cash advances from the moment they are incurred until the amount is repaid.

The Blue Card says it has a 25% APR on cash advances, plus a fee of $5 or 3% of the amount advanced, whichever is greater.

All of the above doesn't sound like such a great way of getting your funds here in Thailand.

[JimGant]

is open to membership for all current and former U.S. military personnel

My neighbor, Dikweed, was courtmartialed for rape and robbery, served time at Leavenworth, and was dishonorably discharged. He's now a proud member of Service Credit Union.

He chortles when he describes being turned down by USAA because he didn't meet their pretentious requirement to be honorably discharged.

Kinda reminds me of Ed McMahon's commercial: "Are you over 65? Then, you qualify for Bulshiite Life Insurance, and cannot be turned down for any reason." I always wanted to see the fine print for premiums of those living in hospices......

JFC, after you join, let us know how things work out.

Oh, USAA wouldn't refund foreign ATM charges if they were imbedded in the exchange rate. Wonder how this outfit stacks up?

[jfchandler]

Jim, you been sipping a bit of the sarcasm tea this morning???

I know you like USAA, and I'd recommend them too based on my knowledge of their accounts, generally speaking, even though I don't actually have any accounts with them or Service Credit Union.

I don't think I'll be applying for an SCU account, only because I'm already getting the same benefits with other existing accounts that you and I have both written about extensively here and in other threads.

But, since you and I pay a bit more attention to banking issues than perhaps the average ex-pat here, when I come across something that looks like a legitimately good deal, I'm inclined to share it with others...

Especially since a lot of the other accounts that carry similar benefits are ones that involve having brokerage accounts.... And while those in fact are easy to maintain and use, even for folks who don't do stock market stuff, the SCU account is a straight checking account with no brokerage elements to it...

And finding a regular bank or credit union that doesn't charge or refunds all of the "big three" fees -- the home U.S. bank ones, the Thai bank 150 baht ones and the VISA/MC 1% ones -- is not such an easy thing.

is open to membership for all current and former U.S. military personnel

My neighbor, Dikweed, was courtmartialed for rape and robbery, served time at Leavenworth, and was dishonorably discharged. He's now a proud member of Service Credit Union.

He chortles when he describes being turned down by USAA because he didn't meet their pretentious requirement to be honorably discharged.

Kinda reminds me of Ed McMahon's commercial: "Are you over 65? Then, you qualify for Bulshiite Life Insurance, and cannot be turned down for any reason." I always wanted to see the fine print for premiums of those living in hospices......

JFC, after you join, let us know how things work out.

Oh, USAA wouldn't refund foreign ATM charges if they were imbedded in the exchange rate. Wonder how this outfit stacks up?

[JimGant]

JFC, I guess I just get annoyed at the "if you are breathing, you qualify" pitches. I guess, in fairness, they have to have a 'hook' of some kind to qualify for a credit union charter. That my great, great..... was a Confederate Private seems a little over the top, however.

Nevertheless, the fact that they require a direct deposit -- and a fairly substantial minimum -- says they're on the up-and-up, and there is probably no financial gimmickry involved.

Again, it's the 'stretch' to establish a credit union 'group' that's annoying -- or maybe just amusing.....

[jfchandler]

Step back and take a breath, Jim...

Frankly, for you or me or anyone else here, why should we really care how any particular credit union defines and configures their membership eligibility.

Does it really matter that some CU only allows active military members, while another allows active and retired military members, while another allows active, retired and the direct family members of both???

What we should care about is: 1) are they a solid banking institution with insured accounts, and 2) are they offering good value accounts and services that meet the needs of their customers...

On that point, it's good to note that SCU is federally insured:

Your savings federally insured to at least $250,000 and backed

by the full faith and credit of the United States Government.

National Credit Union Administration, a U.S. Government Agency.

And on the same general topic, it's worth noting that now that the U.S. financial industry reform bill has passed Congress (no thanks to the Republican minority), the current $250,000 per account limit on federal insurance on deposits will become permanent -- and will not revert to the original $100,000 or some other lesser amount in future years...

So that's good news for savers and depositors...at every and any U.S. banking institution.