Funding a new online checking account with CC......

Colleen

Colleen

Senior Member
Location
Pennsylvania
I was reading an article this morning from Nerd Wallet about making your money earn better interest. Part of the article was recommendations with online banks that earned interest on checking accounts. I looked at one that I had never heard of before (Memory Bank) so I read reviews from people that had opened on account online. I was surprised that most had opened them with their credit card.

I guess I'm behind the times. How does this work? Do you use your cash available from your card or just charge an amount? Please explain, Lucy :)
 

Wire money? People do (I believe memebers here, too) have accounts with online banks, so someone should be able to say how they did it.
 

The internet is great for opinions. I looked for Memory bank and especially looked for negatives. Because who really knows who is writing positives. This is one negative worth reading.


Worst. Application. Process. Ever!


Posted by: notveryamused | May 23, 2018
I have had several high-interest "internet" accounts for many years. MemoryBank is by far the WORST application process that I have encountered. See the other reviews concerning the userid/password/"application account"/real account confusion, the re-entry of data, and the necessity to have the external funding account verified TWICE -- once by the application process, and then again by the account process even after "instant acceptance". I did not DARE select the "securely login to my bank account" option despite the security assurances on-screen...this baking site is so not ready for prime-time that such a mistake would be akin to painting a target on oneself for identity theft!


I'll finish the process, because the deal was good. Will get no more than required deposits until they prove my observations and fears unfounded!
https://www.depositaccounts.com/banks/memorybank.html#reviews
 
Yes...I read all the reviews, including this one. I'm not interested in this online bank. I just wanted to know how these people open an account with a credit card.
 
Colleen said:
Yes...I read all the reviews, including this one. I'm not interested in this online bank. I just wanted to know how these people open an account with a credit card.
Click to expand...
I opened an on line bank to pay my credit cards & on line orders. After the initial deposit ($200) I made another deposit to see how long it would take so I could gauge my payment timing with my close dates. It took a week (7 days - the info said it would take 5 working days) so they did make the cutoff, but now if I plan to pay the cards I'll have to factor in the float time. Another logistic issue to keep track of. This game is getting complicated. No, I couldn't fund either my initial deposit nor subsequent deposit with a card.

I needed to link my Credit Union account to my on line account. To make the link I needed to watch for 2 small <$1.00 deposits for verification. My latest test was paying $100 on a card to see how long that takes. There are several on line banks that allow a credit card deposit but from what I could tell they come across as a 'cash' withdrawal, they are very expensive interest wise so I would advise against that, that could be a dark hole. The interest is better than my CU though!
 
Roadwarrior said:
I opened an on line bank to pay my credit cards & on line orders. After the initial deposit ($200) I made another deposit to see how long it would take so I could gauge my payment timing with my close dates. It took a week (7 days - the info said it would take 5 working days) so they did make the cutoff, but now if I plan to pay the cards I'll have to factor in the float time. Another logistic issue to keep track of. This game is getting complicated. No, I couldn't fund either my initial deposit nor subsequent deposit with a card.

I needed to link my Credit Union account to my on line account. To make the link I needed to watch for 2 small <$1.00 deposits for verification. My latest test was paying $100 on a card to see how long that takes. There are several on line banks that allow a credit card deposit but from what I could tell they come across as a 'cash' withdrawal, they are very expensive interest wise so I would advise against that, that could be a dark hole. The interest is better than my CU though!
Click to expand...

I've had to do that when opening a new account (watch for the small deposits) but I can't remember who it was...it's been a long time since I opened any new accounts. We've had an online saving with Ally for years and that's where I have our CD. I also just applied for their CC that pays cash back and can be deposited right into our savings, which I liked. Currently, we are earning almost 2% on our savings. Their transactions have been quick whenever I need to transfer $$$ into our home bank account and they don't charge a fee for the transfer. All-in-all, we've been very satisfied with Ally.
 
If I'm not mistaken, opening an account with a credit card would be considered using a cash advance which the credit card company charges a fee for. I had to send money (only $35) to my stepson and the company charged a $10 fee which I believe was the minimum.
 

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