30 days and counting to boot camp - What needs to be set up ahead of time regarding banking?

[hodakmom]

My son will be leaving 30 days from today. The question came up about banking and money......is there a particular bank to use for direct deposit, or should we keep his account here at our local bank? Does he really need to have access to money during boot camp? What else should we have set up prior to him leaving? Anything you can provide advice wise would be helpful.

[Brenda Sue]

hm - not positive - but I do know they all set up an account with Navy Federal Credit Union. I guess it all depends on how much "banking" your sons needs while he is gone. Mine has a truck note - so he had his check sent to his local bank - so he could still pay that note. He has since changed everything over to NFCU. Money during boot camp? I don't know. There is a store on the base - but I don't know how often they can go. Sorry, but my son is out of contact for a few weeks - so I can't ask him and basic was a couple of years ago (seems like a lifetime)!!

[Anti M]

The reason they are encouraged to use Navy Federal is that is has branches all over the world, very handy during deployment. The credit union is NOT owned by the military, btw, that's just the name. He won't need cash in boot camp, but taking a ten or twenty along for the trip out can't hurt. Yes, they can "purchase" things at the Navy Exchange (NEX), and that will be deducted from their pay. The first couple of paychecks will be small and it takes a month or so to catch up. don't close his local account until he has finalized arrangements the way he wants them.

Do get him a calling card for his phone calls, and do activate it before he leaves. Tuck some stamps and addresses into his wallet. he can't carry the wallet in BC, but he will have a small, and I do mean small, locking drawer for valuables.

[Navy Dad Mark]

As part of bootcamp they have a financial planning workshop that assists them with setting up savings accounts...money management advice...set up direct deposits of their pay, etc. Your son will be provided with valuable information!

[Tamie (mom of Michael)]

MY son took his debit card, i put money in his account for the Pictures, kilt, ect. it was nice that he had his debit, just for that propose, because the pictures have to be paid up front. I spent about two hundred dollars. but i have a big family. lol
but all other things they bought at the NEX. that comes out of the pay. Hope that helps

[Sue (Sailor Scottie's mom)]

My son was able to set up direct deposit to his current credit union, but he had to go in and get a special form from them to take with him to boot camp. It's an 1199A. They also need to take their checkbook and ATM card for that account to RTC. Hope that helps!

[Nancy S]

My son is currently in boot camp. So here is some advice.
Get a power of attorney from filled out by your son and notified at your local bank. It comes in handy if you have to conduct any business on your son's behalf, even if your name is not listed on his accounts, loans, car registration, or IRS paperwork. It is good especially if he were to deploy in the future and you need to sell car, or something on his behalf.

Get the 1199A from your bank. It is the military version of a direct deposit form. You can't use a standard direct dep form.

Plan on doing all his banking, car payments, etc for him while he's in BC. Put money aside for all those expenses now. I had checks written out/signed for his car insurance, etc before he left. I'll simply mail them when due. He won't be able to do any of that in BC and he needs to focus on the tasks at hand.

Clean out wallet and only take what is absolutely necessary. License, SS Card, ATM card, credit card, a few checks, $25 cash stamps, and a folded paper with addresses. He will want to have a few dollars at MEPS for extra food, and also can use it at the airport if he's flying to BC. He won't need money at BC.

My son still does not have his military pay yet and it's been over a month. So don't count on that for paying his bills.

Nancy

[Anti M]

One thing which may come in handy, and this is for future reference for folks just setting up... look into setting up on line bill pay before the sailor departs. Even if he/she decides to use NFCU later, online banking is convenient and very secure. I pay ALL my bills that way, I don't write checks anymore. You would of course, need the passwords and user names to handle the accounts.

I know this does not work for everyone, but I've been very pleased with the ease and security of paying bills this way. Once the sailor's pay is steady and stable, automatic billpay can be useful. I do that for my mortgage, so I'm never late with payment.

Also, they can have BOTH the hometown bank AND NFCU, and send some to each account. I don't know if they can get this done in bootcamp, but they can certainly do this later.

[SaylrMom]

I agree - the Navy Credit Union is the way to go. They will give the guys all the paperwork they need to join when they get their first paycheck in BC.

[carols_kitchen]

Be sure and get temporary power of attorney (on line or at office store) and have it notarized at your bank for both financial and medical questions.

You can stop payment on things like car insurance and cell phones while they are in boot camp--also get the very generic shipping orders from your recruiter to release to creditors, etc.


http://www.military.com/benefits/legal-matters/scra/overview



Servicemembers Civil Relief Act Overview
The Servicemember's Civil Relief Act (SCRA) expanded and improved the former Soldiers' and Sailors' Civil Relief Act (SSCRA). The SCRA provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers. A few examples of such obligations you may be protected against are:

Outstanding credit card debt
Mortgage payments
Pending trials
Taxes
Terminations of lease.
In addition the new law:

Expands current law that protects servicemembers and their families from eviction from housing while on active duty due to nonpayment of rents that are $1,200 per month or less. Under the new provisions this protection would be significantly updated to meet today’s higher cost of living – covering housing leases up to $2,720.95 per month – and then be adjusted annually to account for inflation.


Provides a servicemember who receives permanent change of station orders or who is deployed to a new location for 90 days or more the right to terminate a housing lease.


Clarifies and restates existing law that limits to 6 percent interest on credit obligations incurred prior to military service or activation, including credit card debt, for active duty servicemembers. The SCRA unambiguously states that no interest above 6 percent can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the servicemember leaves active duty – instead that portion above 6 percent is permanently forgiven. Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.


Note: This law only covers debt incurred prior to military service.

Updates life insurance protections provided to activated Guard and reserve members by increasing from $10,000 to $250,000 the maximum policy coverage that the federal government will protect from default for nonpayment while on active duty.


Prevents servicemembers from a form of double taxation that can occur when they have a spouse who works and is taxed in a state other than the state in which they maintain their permanent legal residence. SCRA will prevent states from using the income earned by a servicemember in determining the spouse’s tax rate when they do not maintain their permanent legal residence in that state.
SCRA Eligibility
The SCRA covers all Active Duty servicemembers, Reservists and the members of the National Guard while on active duty. The protection begins on the date of entering active duty and generally terminates within 30 to 90 days after the date of discharge from active duty.

http://www.military.com/benefits/legal-matters/scra/overview

[hodakmom]

My insurance company for his car insurance told me that I could not take him off of the policy because he is still considered to be living at home during the time he is in bootcamp. I explained to them that he will not have a car at that time and I understand that he will not be leaving the base during boot camp anyways. I am confused by the insurance companies comments. It didn't sound right to me at the time. Any comments?

[Brenda Sue]

strange!! I took my son off the policy while he was in boot camp - then had to put him back on when he got his truck at A school - took him off when he went to Kuwait - put him back on when he got back, etc... no problems - maybe you need to look into changing insurance companies.

Now, the truck itself stayed insured - we just took the kid off - which lowered his premiums tremendously!!!

[carols_kitchen]

same here--just took the sailor off the policy at the time--then he decided he did not want his truck, so we sold it (sob.) maybe you need the direct number to the insurance company instead of the agent's--could be in today's economy the agent doesn't want to lose any commission????