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Here’s How a $10K Withdrawal From Your Bank Could Cause You Financial Problems

Withdrawing money from your checking or savings account may not seem like a suspicious activity. After all, it’s your money. Even if it’s a large amount, like $10,000, who’s to say withdrawing it would call for an investigation?Turns out, withdrawing $10,000 or more from your checking or savings will prompt your bank to file a report with the Financial Crimes Enforcement Unit (FinCEN). It sounds more serious than it actually is, but if you withdraw $10,000 frequently enough — or worse: break up $10,000 into smaller withdrawals — you could find yourself under legal scrutiny. To avoid any problems with FinCEN, here’s what you should know.Why banks report withdrawals of $10,000 or moreEver since the Bank Secrecy Act of 1970, banks have been required to report any transaction involving $10,000 or more to the federal government, whether it’s a cash deposit or a withdrawal. Often, a bank’s software will automatically file a Currency Transaction Report (CTR) electronically for transactions that exceed $10,000, even if you’re not aware of it.Though it might seem like a violation of your privacy, the Bank Secrecy Act helps the federal government track and prevent financial crimes, like money laundering. When banks fail to report large cash transactions, criminal and suspicious activities can fly under the radar. For instance, between 2004 and 2007, the bank Wachovia — now a part of Wells Fargo — allowed about $400 billion in drug cartel money to flow through its banks largely because it failed to report transactions to the federal government.When a $10,000 withdrawal can become a problemTo be clear, a $10,000 withdrawal isn’t a criminal activity per se. In fact, FINCen likely receives so many uninteresting CTRs a day, you won’t trigger suspicion through a large withdrawal alone. But there are some activities that will put greater vigilance on your bank account. The most common is called structuring.Structuring involves breaking up a large cash transaction, like a $10,000 withdrawal, into smaller parts specifically to evade the Bank Secrecy Act’s reporting requirements. For instance, if you withdraw $12,000 in total from your checking account, but break it into three $4,000 withdrawals, the transaction might be seen as structuring.Of course, you could have good reasons for making a series of withdrawals totaling $10,000 or more. But if you do it frequently enough, your bank could report it as suspicious activity. Once flagged, structuring can embroil you in a legal investigation. At that point, if you’re caught intentionally evading a bank’s reporting requirements — even if you’re just a private person who doesn’t want the government keeping tabs on your life — you could face criminal or financial charges.How to safely (and legally) withdraw $10,000 or moreThe best way to withdraw $10,000 or more is to simply do it. Don’t try to break it into smaller installments, or get smart and Venmo your friend half and have them withdraw it for you. If you don’t want your activities tracked, don’t do anything suspicious that will make your bank report it to FINCen.Truthfully, unless you are engaging in something illegal, you have nothing to worry about. FINCen knows large withdrawals and deposits happen everyday, and it’s not concerned with legal cash flows. It’s only when you behave suspiciously that you could find yourself under investigation.If you’re concerned, you can always talk to your bank. Otherwise, just keep withdrawing as you normally would, and you won’t run into any serious financial problems.

3 Reasons I Don’t Like Aldi as Much as I Used To

By: Maurie Backman |
Updated
Sept. 13, 2023 – First published on Sept. 13, 2023

At some point in 2022, I discovered Aldi and began shopping there weekly. I found that I was able to save money on my grocery bill by purchasing certain produce items there. And since I happen to have an Aldi adjacent to my local Costco, it wasn’t particularly out of my way.But over the past few months, I’ve become less enamored with Aldi. Here’s why.1. The selection is just too limitedAldi — at least near me — is a minimally stocked grocery store. The shelves aren’t loaded the way they are at my nearby ShopRite and Stop & Shop.To be fair, this was the case when I first started shopping there. But because there’s just not a lot of selection, I’m generally limited to only buying a few items when I pop into Aldi.Not so long ago, I was running into Aldi for some fruit, which I usually buy there, and I needed to grab shredded cheddar cheese. Normally, I get that at Costco, but I didn’t want to run next door to Costco and wait in a line for cheese alone. Unfortunately, though, Aldi didn’t have the cheese I needed, so I had to make an extra stop anyway.2. The inventory is too inconsistentNot only is there a limited selection of food items I can buy at Aldi, but sometimes, I can’t even find the five or six things I’m looking for. Aldi was once my go-to source for avocados, since it’s an expensive purchase and Aldi tends to sell them for less than Costco (at least in my area). But the last few times I stopped at Aldi, avocados weren’t in stock.And that’s happened to me with other things, too. Over the past several months, I’ve struggled to find everything from cucumbers to strawberries at Aldi as well.3. What the store saves me on groceries, I lose via lost working hoursShopping at Aldi still has the potential to save me a little money on groceries. At a time when supermarket prices are up 3.6% on an annual basis, that helps.The problem, however, is that even though Aldi is right near Costco in my neighborhood, thereby allowing me to combine those trips, it still takes time to visit an extra supermarket. I have to find parking, wait in a checkout line, and spend time searching the shelves.While it’s nice to save $2 here and $3 there, the reality is that a stop at Aldi might cost me 20 or more minutes of work — especially when I don’t manage to find the things I need. And losing out on that work time often means forgoing more than $2 or $3 of income. So from a time perspective, it’s just not worth it.Shopping at Aldi could make sense for a lot of people. If you’re someone with flexibility in your schedule and grocery list, and you’re not so picky about the brands you bring home, then it could pay to spend the time visiting Aldi, even if you don’t always manage to find all the things you need. But I’ve reached the point where shopping at Aldi makes less and less sense for me, so I’ll most likely stop going there unless it’s a one-off basis.

Your SNAP Benefits Could Be Delayed if the Government Shuts Down

By: Emma Newbery |
Updated
Sept. 27, 2023 – First published on Sept. 27, 2023

Many SNAP recipients are looking forward to October. It marks the start of the new fiscal year and brings a slight increase to people’s monthly food benefits. But now there’s a catch. Before the start of each fiscal year, lawmakers in Washington need to pass certain spending bills. So far, that hasn’t happened. And sadly, the political wrangling could have an impact on your SNAP and WIC payments.How a shutdown could impact your food benefitsIf Congress can’t pass the necessary funding bills or some kind of stopgap measure before September 30, the government will shut down. A government shutdown would mean that many non-essential federal services would stop. Many federal workers will be sent home or work without pay.Some benefits, such as Social Security, Medicaid, and veterans benefits, will still be paid during a shutdown. However, it would have a knock-on effect on all kinds of federal services, including the administration and payment of food benefits.Here’s what you need to know about WIC and SNAP:WIC: Women, infants, and children who receive extra assistance in buying nutritious food would be the first to feel the impact. Secretary of Agriculture Tom Vilsack told reporters that in some states, WIC funding would run out “within a matter of days.”SNAP: Vilsack says SNAP recipients should receive their increased October payment, but after that it could get sticky. “Now, if the shutdown were to extend longer than that, there would be some serious consequences to SNAP,” he said.According to the Committee for a Responsible Budget, the USDA is generally only allowed to make SNAP payments for 30 days after a shutdown begins. That’s why people are worried about a prolonged shutdown. However, there are still ways authorities can keep the money flowing. For example, the Food Research & Action Center says there is a $6 billion contingency fund that could be used to fund SNAP in November.How likely is a lengthy shutdown?Before we get into the likelihood of a prolonged shutdown, it’s worth pointing out that the government is still open. Lawmakers still have a few days to find a temporary solution or pass the necessary funding bills. Unfortunately, political analysts say this is unlikely to happen, but it really would be the best scenario.Shutdowns have happened before. Sometimes they only last a day or two, which has limited impact. But others have dragged on for weeks, and that is when ordinary Americans start to feel the bite. The longest was in 2018, when the country went 34 days without a number of federal services.For SNAP recipients worried about a lengthy shutdown, there are no easy answers. If the government does shut down next week, it’s almost impossible to predict when it might reopen. Lawmakers will need to reach some agreements, and in the current political climate, consensus has been hard to come by.That said, cooler heads may prevail. It hasn’t been very long since I wrote articles on another potential political disaster — the failure to raise the debt ceiling. That didn’t happen. This shutdown may also yet be averted, or may prove to be short lived. The trick, as we navigate these uncertain waters, is to know what storms could be on the horizon and prepare for them as best we can.How SNAP recipients can prepare for a government shutdownIt has been a difficult few years for low-income households. Inflation hit a lot of families hard. And the end of the pandemic-related extra food payments was yet another blow to people’s bank account balances. I know it’s hard, but if you are able to put even a small amount of money aside in October, it could ease the impact of any payment delays.Here are some steps SNAP recipients might take:Get up to date with any admin: In the event of a shutdown, your local SNAP office may close or operate with fewer staff members. Act now if you have any queries or paperwork that needs processing.Prepare for a possible delay in your November SNAP payment: See if you can stretch your October SNAP dollars a little further and save some for November. If you’re able to make some extra cash by working extra hours, that could also make a difference.Check for unused cash back rewards: If you’ve been using a cash back app to get rewards for your grocery shopping, November might be the time to cash out those rewards.Look for extra assistance: If you can’t feed your family, find out what help you can get from local food pantries or soup kitchens. Anti-hunger NGOs are already gearing up for increased demand. Call United Way at 211 to find out about available support in your area.Key takeawayIf you rely on SNAP benefits to keep food on the table, the idea of stretching your cash to accommodate yet another financial bump in the road may fill you with dread. It’s beyond stressful and frustrating to feel like you have no financial wiggle room, especially if you’re already struggling to keep on top of your bill payments.The good news is that a government shutdown, even a prolonged one, won’t last forever. Your November SNAP payment may be delayed, but it will arrive eventually. You should also receive slightly more SNAP money in October. If you can carry that extra cash (and perhaps a little more) over, it might be enough to see you through.

7 Little-Known Gift Cards You Should Always Buy at Costco

By: Steven Porrello |
Updated
Sept. 29, 2023 – First published on Sept. 29, 2023

Costco gift cards are one of the warehouse’s best deals. Costco often will add 10% to 30% of value when you buy its gift cards in a bundle. It would be one thing if the gift cards were for places you’d never shop, like Bed, Bath, and Beyond (R.I.P.). But Costco gift cards are surprisingly varied and include many restaurants and retailers you’re probably already spending money with.So if you, like me, pinch pennies for your finances, here are seven gift cards you should always buy at Costco.1. Jiffy LubeCostco will add 25% of value when you buy a set of two $50 Jiffy Lube eGift cards for $74.99. While Jiffy Lube doesn’t offer the cheapest oil change on the market (Walmart will likely take the gold for that), its technicians do go through rigorous training via the Jiffy Lube University to ensure no accidental damage is done to your vehicle. If quality trumps price for your vehicle, this deal will save you $25 off your next oil change (limit of five per membership).2. Alaska AirlinesPacific Northwesterners will appreciate this deal — Costco will give you a $500 eCertificate to Alaska Airlines for $449.99. That comes to 10% off your next Alaska Airlines flight (limit of four per membership).3. Southwest AirlinesIf that was the first time you’d heard of Alaska Airlines, here’s a gift card package with a more familiar airline: Southwest. Costco will add 10% of value when you buy $500 of Southwest Airlines gift cards for only $449.99.4. Cinemark TheatresIn a great deal for moviegoers, you can buy a $50 Cinemark Theatres eGift card for only $39.99 at Costco. That’s an extra 20% of value that you can use for movie tickets, food, drinks, or merchandise (limit of 10 per membership).5. Miller PaintPainting your house ain’t cheap. Interior paint jobs will cost about $2 to $6 per square foot, according to the home improvement site HomeAdvisor, while exterior paint jobs can cost about $1.50 to $4 per square foot. To ease those costs, Costco will sell you $100 of Miller Paint gift cards for $69.99 — a whopping 30% of extra value.6. SpafinderIf you thought the cost of painting your house was bad, imagine how your back will feel after hours of painting walls. To ease that pain, Costco has an irresistible gift card deal: two $50 eGift cards for $79.99 to be used at thousands of spas and salons across the country. You can also use them at participating yoga and fitness studios (limit of 10 per membership).7. Synergy RestaurantsOne of the more interesting gift card packages I’ve come across, this extremely lucrative deal — two $50 eGift cards for a sticker price of $69.99 — will help you foot the bill at hundreds of local restaurants in numerous cities across Arizona, California, Colorado, Nevada, New Mexico, and Texas. This is perhaps one of the best deals I’ve seen and can be perfect for locals in those states and travelers who are visiting them.Most members don’t realize how many gift cards Costco actually sells. In fact, these seven packages only scratch the surface. Next time you’re at your local Costco warehouse, be on the lookout for gift card packages, which are often found at the ends of aisles. You might find a deal you can’t get anywhere else.

5 Amazing Costco Buys for Less Than $10

Costco is a favorite among bargain hunters. But because it’s a place where you typically buy in bulk, it’s often not great when you only want to spend a few bucks. Believe it or not, though, there are some deals at Costco for $10 or less. Here are five amazing Costco finds that will set you back no more than $10.1. Rotisserie chickenNot surprisingly, the $4.99 rotisserie chicken tops this list. Costco debuted its famed bird for $4.99 way back in 1994. It briefly raised the price by $1 during the Great Recession in 2008, then knocked it back down to $4.99 one year later. Had Costco raised its prices to keep up with inflation since 1994, that chicken would cost $10.48 today.Costco’s rotisserie chicken will always be a fan favorite for those looking for an effortless dinner. Just be aware: Costco keeps the prices low because its rotisserie chicken is what’s called a loss leader. The warehouse giant is willing to lose money selling them because it knows it can get customers into stores, where they’ll probably buy more than just a chicken.2. Hot dog and soda comboCostco has raised the prices of many of its food court items in recent years, but the price of one perennial favorite shows no signs of budging: the hot dog and soda combo, which has cost $1.50 since it debuted in 1985. Adjusted for inflation, the hot dog and soda combo should cost $4.28. Last year, during a quarterly earnings call, Costco chief financial officer Richard Galanti said the warehouse giant could keep the $1.50 price point “forever.”3. Kirkland Signature Creamy Almond ButterYou can use almond butter as a salad dressing ingredient, slather it on toast, put it in baked goods, or just eat it straight from the jar. If you’re the type who likes to devour almond butter by the spoonful, you don’t want to pass up a 27-ounce jar of Kirkland Signature Creamy Almond Butter, available for just $7.99. That works out to less than $0.30 per ounce. By comparison, a 16-ounce jar of Trader Joe’s Creamy Almond Butter Salted costs $6.99.4. Olde Thompson Kosher Sea Salt, 5 lbsSea salt has plenty of uses that go beyond cooking. You can use it for cleaning, as an exfoliant for your skin, and sprinkle it around your garden to keep unwanted bugs away. For just $5.99, you can score a 5-pound jar of Olde Thompson Kosher Sea Salt and keep it handy for all your household and kitchen needs.5. Bisquick Pancake & Baking Mix, 96 OuncesBisquick is another one of those things that’s handy to keep in your pantry. You can use it to whip up a quick batch of pancakes or waffles for breakfast or keep it on hand for a variety of baked good recipes. A 96-ounce box of Bisquick is available at Costco for $8.89. It’s normally priced at $10.99, but there’s a $2.10 manufacturer’s discount that’s good through Oct. 8, 2023.What are the best deals at Costco?Since Costco tends to sell large quantities, you’ll typically find that a lot of the best deals cost well above $10. Regardless of the exact price, it usually makes sense to buy products at Costco that have a long shelf life. For example, even if you find great deals on fresh produce and milk, you probably don’t want to load up on these items unless you’re feeding a large crowd, as they’ll go bad quickly.Also, make sure you look beyond the grocery department for savings. For example, getting your prescriptions from Costco Pharmacy or using Costco to fill up your gas tank could also save you money.If you want to maximize the benefits of your membership, try shopping with a Visa credit card that offers rewards. (Costco only accepts Visa credit cards.) That way you can earn travel rewards or cash back when you load up on groceries and other necessities.