My bank checking account pays 0% interest, but no monthly/yearly
no minimum balance, and free (standard) checks. I can switch to an
interest account that pays 0.45% interest if I keep a $2500
I write checks off my prime money market account (Vanguard) with
interest (currently) but there is minimum of $250 per check, a $3000
minimum balance, and no FDIC.
Phisherman re above
I pay no monthly or yearly fees and have no miniumn balance to keep
and can write a check for any amount.
Monetary "convenience" of any kind most always entails risk ... carrying
cash, carrying/using checks, using cards of any type, using a safe, a bank,
a mattress or a can buried in the back yard ... all carry risk, some more
than others, as you've repeatedly pointed out.
It's a personal decision as to the amount of "risk" you're willing to assume
for any of these monetary "conveniences".
From my POV, all your arguments with regard to debit cards are basically
nullified by those minimally intelligent/savvy enough to maintain only a
balance they are comfortable risking in an account tied to a debit/check
While this ain't exactly rocket science, I certainly agree that many, if not
most, in this day and age simply can't handle the minimum requirements, and
therefore would do well to not even consider debit cards.
Great point, as long as one ensures the bank didn't do you the "favor"
of automatically linking your accounts for overdraft coverage.
** http://www.bburke.com/woodworking.html **
The only amount I'm willing to risk is zilch, thus no debit cards for me.
When a commercial business, especially a bank, wants to give me something, I
get very uneasy.
The banks are promoting debit cards for reasons that are in their best
interests, not mine.
We all make our choices ... I can carry $300 cash with me at all times at
the risk of loss, robbery, difficulty of accountability, and having to deal
with pockets full of change; or ...
I can fund/replenish with deposits or online transfers the same $300 in an
account to be accessed with a check card, as needed and at NO cost to me,
with less risk of loss overall, much less risk of robbery, full tracking as
to where the money went, easier accountability for tax purposes than the use
of cash, and with less change to add up on the dresser (which somehow always
finds it way into the pockets of other family members, costing me more money
in the long run). :)
I personally prefer the convenience of the latter ... obviously YMMV.
Banking _always_ costs the consumer money ... to dip their beak in your
money is their reason for existence.
It's rare that a fiscally responsible consumer can actually gain the type of
convenience that suits him by wisely allocating funds, and shopping banks on
terms more favorable than the published federal requirements, and have gain
said convenience at no cost to him.
For fun, re-read your plain old checking account agreement. It is written by
the bank, in their best interest, and they can unilaterally change the
contract at whim, you can only take your business elsewhere.
The thought of me carrying large amounts of cash is out of the question,
although with the increasing price of gasoline, that amount keeps
If I know I'm going to enter a cash only transaction, I withdraw sufficient
funds to cover it, then revert to my minimum cash position.
I chose a particular band based on the fact they have the most ATM machines
in my area.
A credit card, an ATM card, and a small amount of petty cash, and I'm in
Once a month, the credit card company gets a check for the full amount, and
the whole process starts over.
You gotta be kidding.
Had an eye exam this week, have 20/20 corrected vision.
Would need the Hubbell telescope to read my checking account agreement.
I'm old enough to remember when the banker operated on the 4-6-2 system.
Pay 4% interest a customer's money.
Loan it back to them at 6%.
Tee off at 2:00PM.
Maybe the numbers have changed, but not much else.
I once called my lawyer, fit to be tied, madder than a wet hen, with murder
in my heart, and with the full intention of suing a bank and taking it all
the way to the Supreme Court ... yeah, right.
I had deposited a check in excess of $10,000 and it was 17 days before the
funds were available to me, although I had proof from the issuer that the
check had cleared, was debited from their account in favor of the culprit
bank, all within 24 hours.
The lawyer simply said that in law school, if there a question on a test
regarding the outcome of a trial with a bank as one of the litigants, the
answer was _always_ "the bank wins".
Short of politician House and Senate lawyers, there are few more despicable
institutions in this country ... particularly those also in the credit card
I know a lot of people who get screwed by big mega-banks. Not for me.
I use a local savings bank - even for my business. Service is great.
I don't believe in keeping excess cash in the checking account.
They won't get too much if they do break into our checking/debit card accounts.
If I want interest on my money, I give it to my financial consultant.
And we have an emergency cushion in a savings account.
And a risk. Someone can easily get your account number. True,
someone can get your credit card number, but I know Discover Card
protects me against this. Plus, Discover will generate a one-time use
number for online purchases.
I hear paypal also offers a one-time-use accoutn number as well.
Paypal now offers a cryptographic token called a SecureID, which we
also use at work. It's a keyfob that has a 6-digit number that changes
every 30 seconds. When you log in, it asks for the number on your fob
at that time.
It only costs $5 (they sell it below cost - they normally go for $30).
You can buy one and then decide not to use it.
You can use to gain extra protection for your paypal account.
No. It depends on merchant agreements.
At a business I'm intimately familiar with, $35 is our "split".
Over $35, debit cards are better for us. Under $35, credit cards are
better. This will vary, sometimes considerably, from bid'net to bid'net.
We no longer take AMEX due to fee madness.
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