Author Topic: Bank Direct New monthly service fee!!  (Read 9997 times)

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67598
  • Total likes: 16909
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: Bank Direct New monthly service fee!!
« Reply #20 on: December 13, 2011, 05:25:13 PM »
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline Daniel

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: May 2008
  • Posts: 916
  • Total likes: 8
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Bank Direct New monthly service fee!!
« Reply #21 on: December 21, 2011, 04:37:51 PM »
Does anyone have a copy of the terms and conditions before they added this:

Mileage awards are part of a marketing program designed to attract customers who choose BankDirect for their ordinary day to day operating account. The program requirements are easily reached by any customer with normal purchases and bill payment. We reserve the right to deny mileage requests for any obvious attempts to meet the technical requirements of the program without normal activity.

I'm fighting with them to get my points before closing the account.

Offline easy48

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Oct 2010
  • Posts: 280
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Los Angeles
Re: Bank Direct New monthly service fee!!
« Reply #22 on: December 23, 2011, 01:04:45 AM »
So lemaaseh is the consensus that everyone is pulling out??  Dan (or anyone else...) can you quantify at what amount one should stay in for? E.g. 50k or more stay and pay the 144$ or pull out?  Thanks

Online AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30533
  • Total likes: 7831
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Bank Direct New monthly service fee!!
« Reply #23 on: December 23, 2011, 01:08:33 AM »
So lemaaseh is the consensus that everyone is pulling out??  Dan (or anyone else...) can you quantify at what amount one should stay in for? E.g. 50k or more stay and pay the 144$ or pull out?  Thanks

One blogger recently analyzed it, though at 50k it's a no brainer.
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67598
  • Total likes: 16909
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: Bank Direct New monthly service fee!!
« Reply #24 on: December 23, 2011, 01:27:39 AM »
So lemaaseh is the consensus that everyone is pulling out??  Dan (or anyone else...) can you quantify at what amount one should stay in for? E.g. 50k or more stay and pay the 144$ or pull out?  Thanks
Too many variable factors for a blanket analysis.  If anyone wants to volunteer the answers to these questions it will be easy to calculate.

-What interest rate would you earn elsewhere?
-What are your marginal city+state+federal tax rates?
-How do you value AA miles?
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline easy48

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Oct 2010
  • Posts: 280
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Los Angeles
Re: Bank Direct New monthly service fee!!
« Reply #25 on: December 23, 2011, 11:47:37 AM »
Thanks AsherO for the reference and Dan for the right questions. 

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67598
  • Total likes: 16909
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: Bank Direct New monthly service fee!!
« Reply #26 on: December 23, 2011, 12:09:33 PM »
Let's make a few assumptions to illustrate the point.

-You can get an interest rate of 1% elsewhere on a checking account. (Is this too generous?)
-You have a combined marginal rate of 35%. (Obviously this can vary wildly between people)
-You value AA miles at 1.6 cpm. (Which really depends on what you do with your AA miles)

At $200,000 (the account max) you would earn 240K AA miles or $2,000 interest pre-tax which becomes $1,300 after tax.  240K AA miles is worth $3,840 at 1.6cpm.  The advantage of the BD account in this case is $3,840-$1,300-$144=$2,396.

At $50,000 you would earn 60K AA miles or $500 interest pre-tax which becomes $325 after tax.  60K AA miles is worth $960 at 1.6cpm.  The advantage of the BD account in this case is $960-$325-$144=$491.

At $25,000 you would earn 30K AA miles or $250 interest pre-tax which becomes $162.50 after tax.  30K AA miles is worth $480 at 1.6cpm.  The advantage of the BD account in this case is $480-$162.50-$144=$173.50.

At $15,000 you would earn 18K AA miles or $150 interest pre-tax which becomes $97.50 after tax.  18K AA miles is worth $288 at 1.6cpm.  The advantage of the BD account in this case is $288-$97.50-$144=$46.50

At $12,000 you would earn 14,400 AA miles or $120 interest pre-tax which becomes $78 after tax.  14,400 AA miles is worth $230.40 at 1.6cpm.  The advantage of the BD account in this case is $230.40-$78-$144=$8.40

Go ahead and plug your own numbers in to see if the account i still worthwhile for you.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Online AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30533
  • Total likes: 7831
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Bank Direct New monthly service fee!!
« Reply #27 on: December 23, 2011, 12:32:26 PM »
Let's make a few assumptions to illustrate the point.

-You can get an interest rate of 1% elsewhere on a checking account. (Is this too generous?)
-You have a combined marginal rate of 35%. (Obviously this can vary wildly between people)
-You value AA miles at 1.6 cpm. (Which really depends on what you do with your AA miles)

At $200,000 (the account max) you would earn 240K AA miles or $2,000 interest pre-tax which becomes $1,300 after tax.  240K AA miles is worth $3,840 at 1.6cpm.  The advantage of the BD account in this case is $3,840-$1,300-$144=$2,396.

At $50,000 you would earn 60K AA miles or $500 interest pre-tax which becomes $325 after tax.  60K AA miles is worth $960 at 1.6cpm.  The advantage of the BD account in this case is $960-$325-$144=$491.

At $25,000 you would earn 30K AA miles or $250 interest pre-tax which becomes $162.50 after tax.  30K AA miles is worth $480 at 1.6cpm.  The advantage of the BD account in this case is $480-$162.50-$144=$173.50.

At $15,000 you would earn 18K AA miles or $150 interest pre-tax which becomes $97.50 after tax.  18K AA miles is worth $288 at 1.6cpm.  The advantage of the BD account in this case is $288-$97.50-$144=$46.50

At $12,000 you would earn 14,400 AA miles or $120 interest pre-tax which becomes $78 after tax.  14,400 AA miles is worth $230.40 at 1.6cpm.  The advantage of the BD account in this case is $230.40-$78-$144=$8.40

Go ahead and plug your own numbers in to see if the account i still worthwhile for you.

Nice analysis.

At 50k you'd have to value AA miles really low to choose another bank over BD.
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline smiley face

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Oct 2011
  • Posts: 502
  • Total likes: 8
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: New York
Re: Bank Direct New monthly service fee!!
« Reply #28 on: December 24, 2011, 06:53:12 PM »
is it worth it 2 transfer 15k to a money market account?
where can u get 1% for checking or savings?

Offline Blazer

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2010
  • Posts: 368
  • Total likes: 2
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Lakewood-Montreal
Re: Bank Direct New monthly service fee!!
« Reply #29 on: December 24, 2011, 07:22:39 PM »
Let's make a few assumptions to illustrate the point.

-You can get an interest rate of 1% elsewhere on a checking account. (Is this too generous?)
-You have a combined marginal rate of 35%. (Obviously this can vary wildly between people)
-You value AA miles at 1.6 cpm. (Which really depends on what you do with your AA miles)

At $200,000 (the account max) you would earn 240K AA miles or $2,000 interest pre-tax which becomes $1,300 after tax.  240K AA miles is worth $3,840 at 1.6cpm.  The advantage of the BD account in this case is $3,840-$1,300-$144=$2,396.

At $50,000 you would earn 60K AA miles or $500 interest pre-tax which becomes $325 after tax.  60K AA miles is worth $960 at 1.6cpm.  The advantage of the BD account in this case is $960-$325-$144=$491.

At $25,000 you would earn 30K AA miles or $250 interest pre-tax which becomes $162.50 after tax.  30K AA miles is worth $480 at 1.6cpm.  The advantage of the BD account in this case is $480-$162.50-$144=$173.50.

At $15,000 you would earn 18K AA miles or $150 interest pre-tax which becomes $97.50 after tax.  18K AA miles is worth $288 at 1.6cpm.  The advantage of the BD account in this case is $288-$97.50-$144=$46.50

At $12,000 you would earn 14,400 AA miles or $120 interest pre-tax which becomes $78 after tax.  14,400 AA miles is worth $230.40 at 1.6cpm.  The advantage of the BD account in this case is $230.40-$78-$144=$8.40

Go ahead and plug your own numbers in to see if the account i still worthwhile for you.
Dan is there a way that I can attach an Excel Spreadsheet that you can plug all the numbers and it will give you the calculation.

Offline Side incomer

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3507
  • Total likes: 1
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Brooklyn
Re: Bank Direct New monthly service fee!!
« Reply #30 on: December 24, 2011, 07:32:40 PM »
Dan is there a way that I can attach an Excel Spreadsheet that you can plug all the numbers and it will give you the calculation.
Maybe you should work on such an excel sheet for all of us!
Side income is the most solid income... בדוק ומנוסה

Offline Blazer

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2010
  • Posts: 368
  • Total likes: 2
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Lakewood-Montreal
Re: Bank Direct New monthly service fee!!
« Reply #31 on: December 24, 2011, 08:03:44 PM »
I made one but how do I attach it.

Online AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30533
  • Total likes: 7831
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Bank Direct New monthly service fee!!
« Reply #32 on: December 24, 2011, 08:47:08 PM »
Maybe you should work on such an excel sheet for all of us!

Here's a quick mockup, does it work for you?
« Last Edit: December 24, 2011, 08:52:00 PM by AsherO »
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline Simcha89

  • Dansdeals Gold Elite
  • ***
  • Join Date: Jul 2011
  • Posts: 109
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Wesley Hills
Re: Bank Direct New monthly service fee!!
« Reply #33 on: December 24, 2011, 11:16:58 PM »
cancelled my account a few days ago.
Its nuts how a bank that is barely paying a interest and collecting money by lending out our deposits can charge a monthly fee

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67598
  • Total likes: 16909
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: Bank Direct New monthly service fee!!
« Reply #34 on: December 24, 2011, 11:24:22 PM »
cancelled my account a few days ago.
Its nuts how a bank that is barely paying a interest and collecting money by lending out our deposits can charge a monthly fee
Barely paying interest? Reports are they pay AA 1.8 cents per mile!
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Online AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30533
  • Total likes: 7831
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Bank Direct New monthly service fee!!
« Reply #35 on: December 24, 2011, 11:24:48 PM »
cancelled my account a few days ago.
Its nuts how a bank that is barely paying a interest and collecting money by lending out our deposits can charge a monthly fee

It's what (they think) the market will bear...
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline Blazer

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2010
  • Posts: 368
  • Total likes: 2
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Lakewood-Montreal
Re: Bank Direct New monthly service fee!!
« Reply #36 on: December 25, 2011, 12:06:55 PM »
Here's a quick mockup, does it work for you?
Asher how did you attach an excel spreadsheet to this.

Online AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30533
  • Total likes: 7831
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Bank Direct New monthly service fee!!
« Reply #37 on: December 25, 2011, 12:08:13 PM »
Asher how did you attach an excel spreadsheet to this.

Preview your post and there's link-style button under your post called "Attachments and other options".
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline Blazer

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2010
  • Posts: 368
  • Total likes: 2
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Lakewood-Montreal
Re: Bank Direct New monthly service fee!!
« Reply #38 on: December 25, 2011, 12:10:43 PM »
Here is my version of the excel spreadsheet.

Online AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30533
  • Total likes: 7831
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Bank Direct New monthly service fee!!
« Reply #39 on: December 25, 2011, 12:13:14 PM »
Here is my version of the excel spreadsheet.

Nice layout.

Isn't it 1200 AA miles per $1,000 per year?
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael