A corporate partnership that's useless for consumers
Fidelity Observer just got a fat mailer from USAA Federal Savings Bank, promising great things. Quickly I discovered that its contents were useless.
Fidelity Observer already banks through USAA. The benefits of the USAA Federal Savngs Bank account are generally quite good. I have free bill pay, I have not been nickel and dimed with fees (like BOA) and most ATM fees are refunded. However, there are no physical branches, which means all transactions take place through the Internet or through the mail, with preprinted and first-class prepaid desposit envelopes. This also means cash deposits are not possible. So when I got the fat mailer promising "a new way" to mail in my deposits, I was excited. Could this mean a safe way to mail in cash, or some other great improvement?
Not quite. Here are the details of the "new way" to send in deposits:
Dear --Huh? So instead of dropping my deposit slip in a mailbox (i.e., the "old way"), now FO has the option of dropping the deposit slip off at a UPS store (the "new way"). What's the benefit? For consumers, there is no benefit -- unless you believe the USPS are incompetent, and UPS Store employees are totally trustworthy.
USAA has teamed up with the UPS Store to bring you QuickPost. Now simply drop off your USAA desposits at the UPS Store nearest you, using a QuickPost envelope and your USAA deposit slip. It's one more way USAA is making banking more convenient for you.
On the other hand, there is a benefit for at least one of the corporations involved. The UPS Store will get more new customers coming into its stores and perhaps doing additional business beyond dropping off USAA deposit envelopes.
But Fidelity Observer has no idea of the benefit to USAA, as any USAA customer with two brain cells to rub together will see that the new partnership doesn't add up to much.
Related Posts:
What The USAA Ad Didn't Mention
USAA responds to Fidelity Observer with a playground insult
Bait and Switch: USAA Federal Savings Bank
Read this post on the PFBlog.com/fidelityobserver mirror -- Reader comments often appear there that won't show up on this page. You can leave comments on either page, I'll read 'em all!
posted by ian @ 12:28 AM
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Harsh!---and unnecessarily so. Because USAA is a member-friendly nonprofit organization (for example, their insurance arm REFUNDS policy premiums whenever the insurance trust exceeds their reserves--and that actually happens quite often), you have to think beyond exactly what you "get now" from this. Basically, with this deal, USAA has found a new revenue stream (you don't think they're partnering with UPS for free do you?). This new revenue stream, in turn, reduces expenses elsewhere. Reduced expenses means more money to offer back to their members---be it lower loan rates, higher interest rates on deposits, more ATM fees refunded, you name it. Personally, I'm OVERJOYED that USAA has made this deal--not because of what the deal nets me, but because it shows me that USAA is not sitting on their laurels, and is actively managing the company. Kudos to USAA!
I've responded to DC lounger over on the PF Blog mirror.
Actually, don't the UPS deposits get shipped Next Day Air instead of 1st Class Mail? I'd say shaving 1-3 days off deposit time is an improvement for many people.
Shaving 1-3 days off is useful for some people that need to get money into their account ASAP. I'm not one of them.
Fidelity Observer
I have USAA. And I always just deposited things via the regular mail. However their partnership with UPS allows it to get posted next business day (a big deal for some people) and you get a tracking number so you know it gets there.
I've used it, and it's true to form. Deposits are in my account the very next day. It's almost like walking into a bank, but better.
For regular stuff, the old way is still fine.
Kudos to USAA for finding yet another way to help its customers.
I heart USAA.
I agree with some of the above posts. The benefit to the consumer is a quicker deposit. It DOES actually happen to.
FYI, USAA is discontinuing this system by the end of November 2006. However, they are now allowing scanned deposits which are same day. I can scan checks into my computer and email them for deposit by 8pm. Anything after that is a next day deposit. Now you don't even have to walk to the mailbox. Please define convenient for me again!
Lastly, who is making large cash deposits nowadays? I understand if you are a business owner or something, but otherwise most people have a need to receive cash from their bank or ATM; not the other way around.
Assuming you have a scanner, you can now scan your checks and deposit them immediately online from the comfort of your own home. Have a look at USAA Deposit@Home. Now if that doesn't beat BofA, I don't know what does...
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