Regular readers will recall I often counsel against using a bank in the US to keep your main cash resources while living in the Philippines.
Now don’t jump to conclusions. I do not recommend you put all your money in Philippine banks either. In fact, I don’t keep any more money in my Philippine bank than I need to for immediate (next few months) expenses. Three reasons:
- The PDIC (Philippine Deposit Insurance Corporation) only insures up to P500,000 (about $11,800 USD at today’s rate) per depositor … don’t fall for BS schemes that involve multiple accounts under different combinations of names .. P500,000 is all you will ever get. And payout is s..l..o..w.
- When you deposit a check … like in my “write yourself a check … method, it takes nearly a month for that check to clear. What if some emergency came up and you had to leave in a hurry? Fancy being back in the USA and waiting for a Philippine bank to clear your check and then wire you the money by ‘remote control’? I don’t.
- The US is becoming hugely spastic and intrusive on reporting any and all foreign investments and bank accounts. The more money you have overseas, the more hassle you’ll face .. so I take the practical man (coward’s) way out … and minimize my overseas holdings.
But all that being said, I continually hear from folks who say “I only want to have my money in a US bank, a real, “big” bank, like say Citicorp.
They were crooks, folks, back in 2008 when they stole your pension and 401k money, they are unsavory (to say the least) here in the Philippines when they spend more time on ridiculous one-time promos than they do on any sort of honest customer service, and they are still playing fast and lose with your money today in 2012.
Think this is just grouchy old Dave spouting off? Well read the story and judge for yourself. Would you pay $158,000,000.00 in fines and damages, without even trying to defend yourself, unless you knew you were a crook?
… The U.S. Justice Department decided to join her suit in January. Citigroup didn’t dispute any of Hunt’s facts; it didn’t mount a defense in public or in court. On Feb. 15, 2012, the bank agreed to pay $158.3 million to the U.S. government to settle the case.
Citigroup admitted approving loans for government insurance that didn’t qualify under Federal Housing Administration rules. Prosecutors kept open the possibility of bringing criminal charges, without specifying targets. …
So are you sure you want a “big, name brand” US bank handling your money? If you bother to read the article you’ll find virtually every other major US bank in similar schemes, cheating the US government (who is YOU, by the way), right now in 2012.
The “banksters” are the new “gangsters” and they aren’t taking any prisoners. One current presidential candidate (who has made millions, by busting out corporations and destroying worker’s pension funds) is in favor of rescinding the whistle blower laws which allowed Sherry Hunt to exposé Citicorp’s systematic rape of the US public. Wonder why he doesn’t like the idea of citizens being able to blow the whistle on crooked “banksters”?
Myself? I’ll stick with my Federal Credit Union. I advise you to do the same.