It’s now a quite common practice for financial institutions to use small amount of trial deposits to verify the ownership of bank accounts, if they can’t, or don’t, verify it in real time online. For example, when I opened my last two savings accounts at IGoBanking and FNBO Direct and tried to connect them to my Bank of American checking account, both used two small trail deposits, less than one dollar in total, to verify I am the owner of the account as I claimed. The good thing about trail deposit is that I don’t have to send a voided check by mail, so the account application process can be sped up. It usually takes about a day or two for the deposit to hit the bank. After the verification process, the money was left in my account (though I have no way to proof that they deducted the same amount from the interests I earned).
Not so with Zecco.
Last Friday after I opened an account with Zecco, Zecco made two small deposit to my BofA checking account, one 2 cents and the other 38 cents. I verified the trial Friday night and when I checked my BofA account last Saturday, the two transactions were shown as pending.
I logged into my BofA account again last night and guess what I found?
Two pending withdraws of $0.02 and $0.38, respectively.
Zecco would waive trading commissions, which other brokers would charge anywhere from $3 to $15 per trade, if I do business with them, but they sure don’t want me to keep that 40 cents for free.
No complain! It’s not my money anyway.
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