What does it cost the bank?

[iammoleman2]

Does anyone know how much the bank pays when they order boxes of halves? I picked up two boxes yesterday and got a phone call from the manager a few hours later. She is balking at placing more orders for me. Part of the problem was that nobody called when the coins arrived so they were in their tiny vault for a couple of days causing them headaches. She smashed her finger moving them around. That was their fault and I assured her I would pick them up ASAP in the future which she liked but then she said she was going to look into the cost and speak with her director. She is taking a two week vacation so I will talk with her when she returns. As much info as I can get before she returns the better.

 

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[ArkieBassMan]

I'm sure different banks pay different fees. One thing for sure is that the coin couriers do not run for free.

 

[kingskid1611]

Sounds like she wants you to pay her fees. She just wants you to feel her pain

 

[BuffaloBoy]

The situation you're in doesn't sound good. Start looking for a new order bank.

 

[iammoleman2]

I agree with your sentiment buff but I have know this lady professionally for several years now so I am remaining optimistic.

 

[bertmaster2000]

I'm with BB. Find another order bank. I'm friends with the manager of the coin vault at a credit union. He was happy to order as many boxes of halves for me as I wanted, and even provided me with empty $1k bags and accepted the coins back for immediate deposit credit. That was until the cu merged with a larger cu. Point is, things change, so should your approach.

 

[mark1982]

I have a bunch of order banks. It's not good to have just one. Most of my banks never have a problem with ordering unless they ordered so much coin that it fills the weekly amount that they pay the coin supplier a flat rate for. Rarely does this happen. If it does they say I can order but I have to charge you, or they say you can wait till next week and I don't have to charge you. One of my banks has a 8k cap each week for coin. Anything over that they are charger per box for because it's more than there flat rate contract allowed.

 

[Liu21]

I have a bunch of order banks. It's not good to have just one. Most of my banks never have a problem with ordering unless they ordered so much coin that it fills the weekly amount that they pay the coin supplier a flat rate for. Rarely does this happen. If it does they say I can order but I have to charge you, or they say you can wait till next week and I don't have to charge you. One of my banks has a 8k cap each week for coin. Anything over that they are charger per box for because it's more than there flat rate contract allowed.

which bank do you order from?

 

[norcalsteve]

I turned one of my pick up banks into a dump bank a few months ago becouse someone else decided to use them as their dump bank. One day I went in to pick up some boxes of halves and the vault manager came over and explained that she could not order any more becouse someone started bringing in 2-3 boxes a week and she could not order when they had that many already there. She told me that I could start bringing her some of mine since they were already shipping so much out. She said that if the other person ever stops bringing them in she will order for me again.

 

[mark1982]

which bank do you order from?

Peoples United mostly but also Wells Fargo and BOA

 

[fistfulladirt]

[h=2]What does it cost the bank?[/h]
We may never find out what it costs the bank. Mark1982 is right, the cost is normally covered under contract.
My wife was a vault teller for years and whenever I asked, she had no idea the cost, even tho she was in charge of ordering coin and currency. Corporate covered the contract costs.

 

[iammoleman2]

Thanks Mark, thanks fist. That's the info I was looking for.

 

[pkrush]

I had an interesting conversation with a coin processor once. What he said was coins are worth slightly below face value. Why? Because the coins are minted in excess of what is actually needed. This ensures coins are available when needed. It was almost like they rolled, boxed and delivered coins for free just to get rid of them. (I should have asked why he just did not take them to the FED) He was happy as punch to offer pallets of loose coins at face. This seems to be the same story I have with a few bank employees. Ordering coin boxes is free for the bank.

The processors make the money on the other side, buying the coins back (processing). Their fee was by the bag, not by the face value. The fee was the same for a $50 penny bag as a $1000 dime bag.

So to answer the question I think the cost to the bank is having to lift, move, and store them.

 

[Darth Walker]

Lets be greatfull that we can get boxes with out having business accounts. And even with budiness accounts if the flow of cash is not justified with the nature of the business the bank can refuse to sell boxes to individuals who order many. I am a CRH and also a Banker. It does cost to the bank to order boxes. It is not a fixed cost. If a crh gives me problems I just file a report that goes to the irs.

 

[mark1982]

I agree. definitely thankful. Everytime I call to order halves I get prepared to hear the line.."we can't do that anymore".

Around here most of the banks pay a fixed cost for coin. Not all but most of them. I know 2 people who are bank managers and this is how they do it. It's going to be different everywhere, and different depending on the bank.

 

[iammoleman2]

Well they cut me off yesterday. The manager said I could order while she was on vacation but the assistant manager had different plans. She claims it is a cost factor but when I asked what the cost was she didn't know. Sounds like..... well, I had to clean my boots after that phone conversation. I guess I will see if they enjoy being a dump bank. Based upon what I read here I don't think 2 boxes twice a month is a big deal.
I called another (national) bank and told them I need coin for an online business and they said no problem. That is not too far from the truth, I do some fleabay stuff, and I am self employed in the real world so a business checking account is not a problem.
So here is where I would like some advice from the more experienced members. I want to open this new account and order 2 boxes of halves every two weeks, two boxes of cents now and maybe one or two per month as needed, and one box of nickels per week (I have a bank that gets my nickels now so I could just stick with that arrangement). Does this sound reasonable? Some folks here do four boxes of halves a week which seems like a lot to me. Do you get them from the same bank all the time? Four different banks? Do you have accounts with them all or do you just call around until you find an agreeable bank and place an order?

 

[ArkieBassMan]

Well they cut me off yesterday. The manager said I could order while she was on vacation but the assistant manager had different plans. She claims it is a cost factor but when I asked what the cost was she didn't know. Sounds like..... well, I had to clean my boots after that phone conversation. I guess I will see if they enjoy being a dump bank. Based upon what I read here I don't think 2 boxes twice a month is a big deal.
I called another (national) bank and told them I need coin for an online business and they said no problem. That is not too far from the truth, I do some fleabay stuff, and I am self employed in the real world so a business checking account is not a problem.
So here is where I would like some advice from the more experienced members. I want to open this new account and order 2 boxes of halves every two weeks, two boxes of cents now and maybe one or two per month as needed, and one box of nickels per week (I have a bank that gets my nickels now so I could just stick with that arrangement). Does this sound reasonable? Some folks here do four boxes of halves a week which seems like a lot to me. Do you get them from the same bank all the time? Four different banks? Do you have accounts with them all or do you just call around until you find an agreeable bank and place an order?

"Reasonable" does not not exist, or at least varies widely in the CRH world. What one bank is willing to do has no bearing whatsoever on what another bank - or even a different branch of the same bank - will do. I've had banks at which I've never had an account that would allow me to dump or buy coin at will. I also have a branch of a bank where I am a long time account holder ( a "real" account with a mid 5-figure+ balance, not just a token CRH account) where the head teller will NOT sell me even one roll of cents stating, "Those are for customers." What other CRHers are doing or not doing is irrelevant to you.

I personally think that you're already getting off on the wrong foot by stating to your potential new buy bank that you need them for online business purposes. While it might not be an outright fabrication, its not exactly truthful. Its unnecessary. Its bad business IMO. CRH is not an illegal activity. I don't know why we as CRHers feel the need to lie and manipulate.

Have a sit-down with your new bank. Do it in person, not over the phone. Tell them honestly what you want to do, how much, and why. Tell them what you will do for them (open account(s), move account(s), etc). If they deem that what you will do for them is worth the expense and hassle of ordering coin for you, they will do it. If not, try another bank.

FYI - the bank that cut you off from buying, can and probably will cut you off from dumping as well. You have pretty much nothing to lose by using it as a dump bank, but its something to be prepared for.

 

[iammoleman2]

I hear ya bassman. I am not going to flood them with my dumps although I would like to. There are three branches that I can dump at, plus a few other institutions that I can use to dump coin so no one branch has to see me very often. I don't want to completely sever the relationship because I would like to buy bags of coin from their machine from time to time.
As far as a pick up bank is concerned the problem is solved for the time being. I didn't lie about a thing and I didn't offer any information that wasn't asked. I ordered 2 boxes of halves and 2 boxes of cents to be picked up next week and she didn't bat an eye. I figure I will want 1 box of halves, some cents, and an occasional box of dimes every other week. I hope that is a pace they are comfortable with. Time will tell......

 

[LooseChange]

...
Have a sit-down with your new bank. Do it in person, not over the phone. Tell them honestly what you want to do, how much, and why. Tell them what you will do for them (open account(s), move account(s), etc). If they deem that what you will do for them is worth the expense and hassle of ordering coin for you, they will do it. If not, try another bank...

I agree with ABM. My approach at all of my new banks (new to support the hobby) has been upfront.

I start by saying "I have some unique banking needs." That always generates curiosity. Then, I explain that it is for a coin searching hobby.

Then,
"I need to be able to order 6-10 boxes of rolled coin a couple of times a month"
- OR -
"I need to exchange up to $2000 of loose coin for cash a couple of times a month"
It is always one or the other, never both!

If it is a supply bank and they ask what I do with the leftover coin, I say "I spend some of it but I have a different bank that takes most of it." I also say: "I will not bring it back here or take it to another branch of this bank."

If it is a dump bank and they ask where I'm getting all of the coin, I say "I get it from wherever I can, mostly from other banks." I also say: "I won't be getting it from here or another branch of this bank."

If they agree, there should be no surprises. If they don't, you're better off looking elsewhere. I've had banks say that they are not the bank for me. I thank them and move on.