Brendan’s Blog

I first joined Digital Federal Credit Union as an employee of Digital Equipment Corp in 1999.  In the years since I have found DCU to be focused on providing new an innovative services, excellent customer service, and a very convenient place to conduct my day-to-day banking.

Digital Federal Credit Union is a not-for-profit financial cooperative owned by and operated for our members. DCU was chartered in October of 1979. Since then, DCU has been chosen as the credit union for more than 700 companies and organizations. DCU serves more than 350,000 members and their families in all 50 states.

 

DCU is the largest credit union headquartered in New England as measured by assets and among the top 15 nationwide. According to Callahan & Associates, a credit union consulting group, of the top 50 largest, DCU has been the fastest growing credit union in America in the last ten years. That’s thanks in large part to the satisfaction and loyalty of our members and the dedication and commitment of our volunteers and staff.

DCU has several advantages to local area banks that I find very appealing:

• No fee-for-service  Very few kinds of things incur fees at DCU.
• Reimbursed ATM fees  DCU reimburses you for the fees that third-party ATMs charge you (up to $10/month)
• PC Deposit  Deposit paper checks from your PC and scanner – no more mailing!
• Fantastic bill-pay system  Very easy to use, and costs you nothing.  I don’t write & mail checks, and have not for years.
• Free Wireless Access Free account access from your web-enabled phone, PDA, or pager.
• Quicken/Money/Quickbooks Data import functions if you use software to help track spending

Since DCU is a credit union, not a bank, you must be eligible to join by your employer, family relationship to existing members, organization you belong to, or community you live in.  Luckily, anyone can join DCU by first joining a membership organization for as little as $15.  Once a member, always a member.

The only downside to using DCU day-to-day is that they don’t have branches near my home.  This isn’t a show stopper however.  DCU does participate in a CU Service Center Network which does have branches within 30 miles of my home.  With conveniences like ATMs for withdrawals, direct deposit, prepaid envelopes for deposit-by-mail, and now PC deposit via scanner, I rarely need a traditional branch anyway.

Most financial experts recommend keeping some quantity of cash savings available for emergencies. Up until a few months ago I kept my cash savings in standard Certificates of Deposit with my credit union. CDs provide a modest interest return, but make quick access to the funds painful with early withdrawal fees. I did a little research for a good alternative and found GMAC Bank. Its interest rate returns are better than CDs and there are no “early withdrawal” penalties.

GMAC Bank offers a “Money Market Savings” account which earns a very competitive interest rate, currently 5.30% APY. Deposits are FDIC insured and can be made via mail (postage-paid envelopes are provided at no cost), ACH, or wire transfer.

After opening your account you will receive a small order of checks and a VISA Debit/ATM card. ACH transfers of funds from GMAC to your normal bank account are free and take ~24-48 hours.

There are a few minor catches (of course) but I could easily live with all of them.

• Minimum balance of $500 to avoid monthly charges
• Maximum of 3 check/debit card transactions per month
• Maximum of 6 withdrawals, or transfers to other accounts, per month
• No local bank branches you can go visit

The GMAC Bank web site is simple and secure. From the web site you can do basic account management such as reviewing transactions or initiating a deposit or withdrawal (via ACH.) GMAC Bank will also download transactions to Quicken or MS Money.

You can open an account online or by phone.

• Open an account online
• Open an account by phone: 1-866-2GMBANK (1-866-246-2265)

One of the things that both my wife and I do on the Internet is shop. I tend to buy consumer electronics, she tends to buy clothes for our daughters. We both have found techniques that work for us. I can only speak for me, so if you’re looking for how/where to buy clothes, this article isn’t going to help you much.

1. Look for product reviews. Before a purchase, I use Google to find product reviews of the items I am interested in. A simple search such as “review netgear wpn824” will locate several useful sites.
2. Check the manufacturer’s web site. Frequently it will contain feature overviews, suggested retail pricing, information about a newer models/versions, and perhaps even an electronic copy of the user guide.
3. Compare prices. Once I have selected a specific product to buy, I use two web sites to look for price comparisons. The first is http://shopper.cnet.com/ which specializes in consumer electronics and frequenty includes product ratings and review. The second is http://www.pricegrabber.com which has a wider variety of items, but doesn’t contain product reviews. Both sites allow you to compare total price after shipping by entering your zip code.
4. Purchase with a Credit Card. I make nearly all of my on-line purchases with an American Express charge card. The credit card adds several types of protections such as a purchase protection, return protection, extended warranty, fraud protection, and dispute resolution. While debit cards or PayPal may provide some of these features, I prefer the convenience and features of my American Express card. Your preferences may vary of course, as credit cards are not for everyone.
5. Use Low-Cost Shipping. If you really need a product quickly, you are often best-off buying it at a store. The premium cost of overnight or two-day shipping is rarely worth the cost to me. So what if the new CD/Book/Mouse gets here in 5 days instead of 2. I’ve obviously lived just fine without it so far…. what’s an extra three days?
6. Consider Used. People tend to either love or hate eBay. I have purchased many used items so far, and only gotten ripped off once (on an original XBox.) Usually new products are more expensive (after shipping) on eBay than they are at other places, but used products can be much cheaper. If you are buying CDs, movies, or books consider using Half.com. I have had nothing but great experiences here.
7. Check for rebates and coupons. I have found that the Hot Deals forum at FatWallet.com has great information on some items. I frequently perform a search here for my item before I buy it elsewhere.