As a fulltimer for over three years, and a banker for 34 years,I thought some notes on banking might be helpful to others. So,here goes....
I am using the terms banks and bankers to include all financial institutions, including banks, credit unions, brokerage firms,etc.
The best time to begin your planing is well before you start fulltiming. There are some advantages to doing your financial shopping before your leave your employment. If you plan to finance your rig, you will find it easier to obtain a favorable loan, while you are still employed. Bankers like to see verifiable sources of income and generally feel more comfortable with a loan if they can see a validated source for payments. This is not to say, you cannot get a loan if you are not employed, but generally you are in a better bargaining position. Bankers want to make loans, but they also want to feel
comfortable in knowing the loan will be repaid.
You want to shop your loan, just as hard as you shop for your rig. Even if you want to make the loan with your present bank,shop others to get comparison rates. If, you get a better quote,tell your banker, usually they will match it, if they want your business. Also, ask if they will give an additional rate discount, if you let them automatically debit your account for the loan payments. You want to do this anyway, and usually you can get a 1/4% reduction in rate.
You need to decide if you want to bank with large or small bank. Each has it's advantages. In either case, make sure your deposits are fully insured, no matter how large the bank. A large bank will have branches all over the country and often you can bank online through your PC. Smaller banks offer most of the same services, but generally do not offer online banking. If
you're comfortable with your present bank, it's probably the best choice. Make sure you know someone at the bank, the President if possible. Take him or her to lunch and explain you will be RVing and you want to be able to pickup the phone and transact business if necessary. The better you know someone at your bank, the better the probability they will be willing to assist you over the phone if necessary.
Ask about overdraft protection on your account. Many banks can automatically transfer from another account, should you make a mistake and write a check for more than your balance. Although they may make a small charge for this service, it will be less than an NSF charge and saves you the embarrassment of a return check. Some can even try this to your credit card if you wish.
Ask about a senior citizen account. These are usually service charge free with a low balance requirement.
Try to get everything as automatic as possible. Have all income send directly to your account at the bank. This can be done electronically or manually if necessary. Have all regular bills paid by electronic debit to your checking account or credit card. You will still get a copy of the bill, but you won't have to worry about late payments since the bills are paid when due. Also, have your credit card payment electronic paid from you checking account.
We carry an ATM card and credit card and find this meets all our needs. We can get cash at any ATM, and we charge everything we can on the credit card, including fuel and groceries. Thus, we avoid having to carry large amounts of cash. And since the credit card is paid in full each month there is no interest charges. Get a no fee credit card and one that allows you to earn a rebate from your purchases. Those earnings add up and cost you nothing. A
good web site to checkout credit cards is: www.bankrate.com
We have used our ATM card in Canada and Mexico, without any problems. A side benefit is that you receive the best exchange rate at these ATM's. We usually get enough cash for about a week, thus avoiding numberious ATM charges. We feel this fee (usually $1) is a small price to pay for the convenience and
peace of mind in not having to carry large amounts of cash. Some small banks waive this fee...so check.
Remember -- if you know your banker, you are much more like to be able to negotiate service charges, fees and loan rates...or get a problem solved quickly and favorably.