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Friday, November 26, 2010

Banking Woes

I deposited a check the other day in  my local bank and they said it would take A MONTH to clear! This was a check from a big company from a major US bank and there shouldn't be a problem. It was for only $400. Geez,   I can transfer money in minutes all around the world and this bank (NBAD) insists on holding my money for a full 30 days!!! I have to throw the bullshit card.

They just want to hold my money to get interest from it. The check will clear in a few days but I cannot have access to my money for a month. Its pure theft and things only work the bank's way. What if I told them my car payment was going to be 30 days late, I don't think they would be very understanding.

Banks are nothing but thieves and I suggest all to keep their money under the mattress rather than enrich these bastards. Charging interest is not according to Islamic law but that  fact is conveniently forgotten.

OK. I vented and feel better now.

4 comments:

Chuck said...

I tend to like credit unions or small, locally owned banks better than large national ones. Of course, I imagine you don't have much of a choice over there...

Janet said...

I agree wholeheartedly!! And Credit Unions aren't any better...They're all thieves I tell ya! THIEVES!

ultra[blue] said...

They dont HOLD the funds Ace. The physical check has to actually go to that bank in the US. Sad but true. Until recently if you deposited a... RAKbank check into your NBAD account, that check had to actually go to RAK's processing unit... Probably in RAK. A check took 4-6 days to clear just 3 years ago.

Today all the banks in the UAE are tied to a central electronic clearing system, and so ANY UAE check will clear the same day by 5 if deposited before 11, and the next day afterward.

in your case, even if the check drawn on a US bank is for 20 dollars, the actual check has to go to that bank in the US.

When NBAD say it will take 30 days to clear, what they mean is it CAN TAKE up to 30 days to clear.

I started my career at NBAD... international checks can clear in as much as 30 days and AS LITTLE as 4.

Also, when funds are "held" in a bank they tend to sit in transit accounts, and those accounts dont bear interest. Just por your info. The bank doesnt actually have any benefit in "holding" your funds. Infact, banks tend to want to get amounts out of those transit accounts ASAP as pending amounts = Auditors asking questions.

As for interest being haram, it is, but Islam isnt the major way of doing business anymore (as it was 1000 years ago)

However, for those devout. we have "Islamic" banks.

If we use your logic, those pool parties you go to should be illegal as well, no?

As for you transfering funds in minutes, not possible. Western union, yes, but actual bank to bank, from the US to the UAE would take 12-24 hours. And guess what, from NBAD to say, Wells Fargo... 12-24 hours.

Fact is it is a much better idea to have transfers made to you instead of checks.

ultra[blue] said...

All that being said, NBAD on a whole isnt really bothered when it comes to consumer banksing. Meaning you, me, people.

Why? Because NBAD holds all of the Govt of Abu Dhabi's accounts, finance dept, police, military, ADIA, Adnoc...

As a whole, they just arent bothered. You make what? 60, 70K a month? nothing to a bank that holds the wealth of Abu Dhabi.

Just saying. A smaller bank will give you a bit more personal attention... but you forego a huge network of branches and ATMs (Not to mention NBAD's safety)

In the end, your banking experience in the UAE will depend SOLELY on your contact at the bank. Which is kind of shitty as if that person leaves, you are... "Esckreweded."