Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
I set up two business checking accounts for my LLC--one for the rents,etc. for the property that will be held by that LLC, and the other for just the security deposit for that property, as my state's law requires. (law says you have to keep the security deposit in a separate account and never put any other monies in that account).
Unfortunately, Bank of America requires you to do a debit card purchase at least once a month or maintain a balance of at least $3000 in the biz account in order not to be charged monthly fees for the account. Doing either of those things would basically put me in non-compliance with the state security deposit law.
Would it be better to just forget the separate account and put the deposit in with the rent monies in the other account? Is it really that common to go after a landlord for "commingling" the security deposit?
Lesson: Pick a bank to hold those escrow moneys without these stupid fees being imposed.
Does BoA want a purchase, or use of the debit card? If it is just use the debit card, you can use ATM to take cash out and then go right bank into the teller and deposit it back in :wink:
Lesson: Pick a bank to hold those escrow moneys without these stupid fees being imposed.
Does BoA want a purchase, or use of the debit card? If it is just use the debit card, you can use ATM to take cash out and then go right bank into the teller and deposit it back in :wink:
No, they want a debit purchase. It looks like I'm going to have to close that account. What a waste of time. I wish I had checked into this further before choosing BOA.
I have security deposit accounts at both BB&T and Wachovia. Neither have this requirement.
Jennifer, if you don't mind me asking, did they let you keep just those security deposit accts there, or was it contigent on having some other addtional account there too with more money in it? Thanks.
(I would like to leave at least the "main" rents acount at BOA if possible and open the security deposit account elsewhere if possible, rather than undo all the time I just spent on this)
Some banks will cut those crappy fees when you maintain a "banking relationship" with them for at least some specific amount. Some will even count any LOC that you have with them as part of the relationship; some will only count the amount already drawn on a LOC toward the relationship amount.
But there are banks that will allow for these "escrow" accounts without any fees and without any other relationship (I have security money deposited as the only account at such a bank) - you just have to ask them if they do that, and what they will require of you to have such an account. Also, you want to ask them if they will let this account become "dormant" or not, and if so how to avoid that; if your tenant stays for a long enough time, state banking rules usually require that accounts with no activity be made "dormant".
Some banks will cut those crappy fees when you maintain a "banking relationship" with them for at least some specific amount. Some will even count any LOC that you have with them as part of the relationship; some will only count the amount already drawn on a LOC toward the relationship amount.
But there are banks that will allow for these "escrow" accounts without any fees and without any other relationship (I have security money deposited as the only account at such a bank) - you just have to ask them if they do that, and what they will require of you to have such an account. Also, you want to ask them if they will let this account become "dormant" or not, and if so how to avoid that; if your tenant stays for a long enough time, state banking rules usually require that accounts with no activity be made "dormant".
I've already had a relationship with BOA for sometime, but that doesn't matter to them--apparently their fees are set in stone.
We have our business checking and escrow account at BB&T. The checking account is extremely active and we collect almost $25k a month in rents. We have the free business checking account for both accounts.
We have another LLC with very few properties (read 2) and we keep sec deposits at Wachovia. That account is non-interest bearing and has account activity maybe once a year. We dont have any other business acccount with them. I have banked with Wachovia personally for over a decade. We put the account with them when we were trying to get them to give us a free machine where you can deposit checks from your office without having to go to the bank. If we go it with them then we were going to try and play BB&T to give it to us for free or we were going to pull our account. We never did anything with the machine and the account just sits there.
We have our business checking and escrow account at BB&T. The checking account is extremely active and we collect almost $25k a month in rents. We have the free business checking account for both accounts.
We have another LLC with very few properties (read 2) and we keep sec deposits at Wachovia. That account is non-interest bearing and has account activity maybe once a year. We dont have any other business acccount with them. I have banked with Wachovia personally for over a decade. We put the account with them when we were trying to get them to give us a free machine where you can deposit checks from your office without having to go to the bank. If we go it with them then we were going to try and play BB&T to give it to us for free or we were going to pull our account. We never did anything with the machine and the account just sits there.
Thanks, BB&T must love you with all those deposits going in.
I don't know why BOA is so stubborn about that debit purchase requirement, it seems like they could waive something like that. I know there are a lot of people (especially Dave Ramsey) who think that BOA are the devil's spawn, but this is the first problem I've had with them. Then again, I'm not in debt to them and don't have them chasing after me.
Maybe I'll try one of the small local banks for this. This might be a good opportunity to establish a relationship with them in case I need to borrow money down the line.
My wife and I both had multiple accounts with BofA until recently. Now, all ties and relationships have been severed. BofA just can't get it through their thick 1920's era Wall Street skulls that consumers have options when it comes to banking and we'll walk when we get "fee'd to death".
Sorry, BofA, but you're NOT so big I have to bank with you.
I would go one step further and say DON'T BANK WITH THESE GIANT BANKS! You can't build a relationship with a giant machine! You can't negotiate with a giant machine - unless you're another giant machine.
Find a SMALL, local bank and build a relationship with them. You'll get a LOT better service.
You can't negotiate with a giant machine - unless you're another giant machine.
That's it in a nutshell.
I do love BOfA's online banking setup--very easy to use, easy to transfer from external accounts, etc. But that's not enough to keep me there. It's annoying that even though I'm an Advantage customer on my personal accounts, that isn't enough for them to bend on those fees for my biz checking account.
Incidentally, I was informed by BOfA that they won't do any mortgages or HELOCs for investment properties right now.
Being a former Personal Banker for Wells Fargo, I agree and disagree with MikeOH... I agree wholeheartedly that the "Giant Banks" really don't budge on their stipulations and all around, are in it for the money, but then again, who isn't? Generally, small banks still do have the "old school" banking mentality in which a relationship with them, will get you much further than with the "Giant Banks"... That being said however, it's hard pressed to say that you can't build a relationship with tellers, bankers, and managers of these big banks. The only thing is that sometimes, most times, what some customers want can't be done.
Now that I've said that however, I think you are better of to find a new bank whose stipulations aren't as harsh. I know Jennifer mentioned Wachovia(or Wells Fargo now), and I know that both WF and Wachovia independently have great Business accounts(unfortunately it's been to long for me to remember WF's features in order for me to share with you) and now together under the WF name, will continue to be great banks. Chase is also another recommendation. So if BofA is really not willing to work with you, give them the boot!